Mart Resources, Inc.
TSX : MMT

Mart Resources, Inc.

April 10, 2014 08:30 ET

Mart Resources, Inc.: Operations and Production Update

- Umusadege field production averaged 13,183 barrels of oil per day ("bopd") during March 2014 based on calendar days; average field production based on production days was 13,852 bopd during March 2014.

- Umusadege field net deliveries into the export pipeline were approximately 350,750 barrels of oil ("bbls") in March 2014 before pipeline losses.

- Pipeline and export facility losses reported and allocated to Mart and its co-venturers for February 2014 were 20,849 bbls, or 10.1% of total crude oil deliveries into the export pipeline.

- Aggregate downtime during March 2014 totaled approximately 1.5 days, and there were no full down days during the month.

- Construction activities on the Umugini pipeline are progressing, and pipeline construction is expected to be completed in the first half of 2014.

CALGARY, ALBERTA--(Marketwired - April 10, 2014) - Mart Resources, Inc. (TSX: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 providing the following updates on Umusadege field production for March 2014 and other operations.

March 2014 Production Update

Umusadege field production during March 2014 averaged 13,183 bopd. Aggregate Umusadege field downtime during March 2014 was approximately 1.5 days due to minor operational interruptions, with no full down days during the month. The average field production based on producing days was 13,852 bopd in March 2014.

Total net crude oil deliveries into the Nigerian Agip Oil Company Limited ("NAOC") export pipeline from the Umusadege field for March 2014 were approximately 350,750 bbls before pipeline losses. Pipeline and export facility losses reported by NAOC and allocated to Mart and its co-venturers for February 2014 were 20,849 bbls, or 10.1% of total crude oil deliveries into the export pipeline for that month. As previously announced, total net crude oil deliveries into the export pipeline from the Umusadege field for February 2014 were approximately 206,700 bbls, so after deducting the actual pipeline and export facility losses allocated for February 2014, the total net crude oil deliveries less losses for February 2014 were 185,851 bbls. March 2014 pipeline and export facility losses have not yet been reported by NAOC.

Umugini Pipeline Update

Surveying and clearing of the right of way for 50 kilometres ("km") of the Umugini pipeline has been completed and pipeline construction is ongoing. The first 24 km of the pipeline have been completed and backfilled. Stringing of approximately another 21 km of pipe has been completed, and welding, coating, radiograph testing has been completed on 16 km of this 21 km section. Trenching and lowering is currently being finished on approximately 10 km of this length, and the installation of fiber optic cable that is part of the leak detection system has been completed on the first 3 km. Procurement of materials and equipment required to complete the pipeline pumping, monitoring and control facilities is ongoing. Surveying and clearing of the right of way for the final section of the Umugini pipeline is ongoing, as negotiations with local communities and the Nigerian Petroleum Development Company along the final section of the Umugini pipeline are progressing and nearing completion. The group managing construction of the Umugini pipeline continues to estimate that pipeline construction will be completed in the first half of 2014. Pipeline commissioning will occur following completion of pipeline construction and installation of pipeline pumping, monitoring and control facilities.

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.

Except where expressly stated otherwise, all production figures set out in this press release, including 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, there is no assurance that there will not be future disruptions of the NAOC pipeline or Brass River export terminal. Any future disruptions will materially and adversely affect the ability of the Company to transport, deliver and sell its crude oil production from the Umusadege field. Statements (express or implied) concerning the allocation of export and pipeline capacity to the Umusadege field from their third party pipeline owners, should also be viewed as forward looking statements. Pipeline and export facilities losses are expected to continue in the future and such losses could be material. There is no assurance that there will not be adjustments to previously reported pipeline losses. There is no assurance regarding that the completion of the Umugini pipeline will be completed in the first half of 2014 or that all equipment, agreements or approvals required to commission, operate or transport oil through the Umugini pipeline will be received in a timely fashion or at all.

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 no 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.

NEITHER THE TSX NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE RELEASE.

Contact Information