CALGARY, ALBERTA--(Marketwire - Oct. 11, 2012) - Mart Resources, Inc. (TSX VENTURE:MMT) ("Mart" or the "Company") and its co-venturers, Midwestern Oil and Gas Company Plc. (Operator of the Umusadege field) and SunTrust Oil Company Limited are pleased to provide an update on Umusadege field production and drilling operations for the months of August and September 2012.
August and September 2012 Production Update
Umusadege field production during August 2012 averaged 12,131 bopd and averaged 11,303 bopd during September 2012. Umusadege field downtime during August 2012 was less than one day and during September 2012 was less than three days. The average field production based on producing days was 12,535 bopd in August and 12,559 bopd during September 2012. The average daily production in August and September 2012 was slightly lower than in July 2012 due to decreased export pipeline capacity allocated to the Umusadege field.
Total crude oil deliveries into the export pipeline from the Umusadege field for August 2012 were approximately 376,000 bbls and for September 2012 were approximately 339,000 bbls before pipeline losses. Pipeline and export facility losses for August 2012 as reported to Mart by the pipeline operator were 52,000 bbls or approximately 13.7% of total crude deliveries. July 2012 reported pipeline and export facility losses were 56,000 barrels or approximately 13.8% of total crude deliveries. September pipeline and export facilities losses have not yet been reported by the pipeline operator. Pipeline and export facility losses as reported by pipeline operator from the beginning of the year to end of August 2012 are approximately 13.3% of total crude deliveries. Mart and its co-venturers are continuing to investigate this situation and are working to obtain additional information regarding such losses including assessing the accuracy of volume reconciliations as well as the accuracy of the metering and reporting processes.
UMU-10 Well Update
The UMU-10 well has reached a final total drilling depth of approximately 9,757 feet. The next phase of operations will include open hole well logging, conducting pressure surveys on prospective zones and acquiring fluid samples. Well operations will then continue with running 9 5/8 inch casing in the open hole. The primary objectives of the UMU-10 well are the oil-bearing sands identified in the 8 1/2 inch deviated hole section of the UMU-9 well. The oil-bearing sand discoveries from UMU-9 account for 170 feet of gross oil pay. Based on UMU-10 preliminary results from logging-while-drilling (LWD) technology, the target sands identified by the UMU-10 well have been similar in thickness to those encountered in the UMU-9 well. Up to four of these sands could be completed in UMU-10. The completion and testing of the UMU-10 well is expected to take approximately 45 to 60 days.
Mart and its co-venturers are nearing conclusion of negotiations with an affiliate of Royal Dutch Shell plc. ("Shell") to complete a crude handling agreement that will enable plans to move forward to provide a second independent export pipeline for Umusadege field production. Mart and its co-venturers will then gain access to Shell's export facilities and a 50 kilometer pipeline will be constructed. Construction of the pipeline connecting the Umusadege field to Shell's export facilities is expected to be completed and in service by Q4 2013.
Mart Presenting at Canaccord Genuity Global Resources Conference in Miami
Wade Cherwayko, Chairman and CEO of Mart, will be a presenter at the Canaccord Genuity Global Resources Conference in Miami, Florida on October 18, 2012. A link containing the location and details of the conference is available on Mart's website under News & Presentations / Corporate Presentations - www.martresources.com.
Additional information regarding Mart is available on the Company's website at www.martresources.com and under the Company's profile on SEDAR at www.sedar.com.
Investors are also welcome to contact one of the following investor relations specialists for all corporate updates and investor inquiries:
FronTier Consulting Ltd.
Mart toll free # 1-888-875-7485
Attn: Sam Grier or Timea Carlsen
Note: Except where expressly stated otherwise, all production figures set out in this press release, including barrels of oil per day ("bopd"), reflect gross Umusadege field production rather than production attributable to Mart. Mart's share of total gross production before taxes and royalties from the Umusadege field fluctuates between 82.5% (before capital cost recovery) and 50% (after capital cost recovery).
Forward Looking Statements and Risks
Certain statements contained in this press release constitute "forward-looking statements" as such term is used in applicable Canadian and US securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact and should be viewed as "forward-looking statements". These statements relate to analyses and other information that are based upon forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
In particular, past production levels and crude oil deliveries are not necessarily indicative of future production levels and crude oil deliveries. In addition, statements (express or implied) concerning the allocation of export and pipeline capacity to the Umusadege field from the third party pipeline owners, should be viewed as forward looking statements. There is no assurance that (1) Mart and its co-venturers will be able to obtain additional information regarding pipeline losses; or (2) there will not be future pipeline losses and that such losses will not be at levels greater than those referenced herein;
In addition, there is no assurance that the drilling program for the UMU-10 well will be successful or will successfully appraise the target sands identified by the well. Statements (express or implied) regarding the ability of the Company to successfully complete, test and commercially produce, transport and sell oil from the UMU-10 well (or any one or more of the hydrocarbon sands identified by the UMU-10 well), should all be viewed as forward-looking statements. The well log interpretations indicating hydrocarbon bearing sands are not necessarily indicative of future production. There is no assurance that reserves will be assigned to such hydrocarbon bearing sands.
There can be no assurance that such forward-looking statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.
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