CALGARY, ALBERTA--(Marketwired - May 13, 2014) -
- Umusadege field production averaged 8,593 barrels of oil per day ("bopd") during April 2014 based on calendar days; average field production based on production days was 12,539 bopd during April 2014.
- Umusadege field net deliveries into the export pipeline were approximately 249,056 barrels of oil ("bbls") in April 2014 before pipeline losses and approximately 193,903 bbls after deducting pipeline and export facility losses estimated by Mart for April 2014.
- Pipeline and export facility losses reported and allocated to Mart and its co-venturers for March 2014 were 45,959 bbls, or 13.1% of total crude oil deliveries into the export pipeline.
- Aggregate downtime during April 2014 totaled approximately 9.5 days, including two 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.
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 April 2014 and other operations.
April 2014 Production Update
Umusadege field production during April 2014 averaged 8,593 bopd. Aggregate Umusadege field downtime during April 2014 was approximately 9.5 days due to repairs and maintenance to the Nigerian Agip Oil Company Limited ("NAOC") export pipeline and other operational interruptions, with two full down days during the month. The average field production based on producing days was 12,539 bopd in April 2014.
Total net crude oil deliveries into the NAOC export pipeline from the Umusadege field for April 2014 were approximately 249,056 bbls before pipeline losses. Based upon the 12-month rolling average rate of pipeline and export facility losses of 22.14%, Mart estimates pipeline and export facility losses for April 2014 to be approximately 55,153 bbls. Using this estimated pipeline and export facility loss volume, the total net crude deliveries into the NAOC export pipeline from the Umusadege field for April 2014 less estimated pipeline losses is 193,903 bbls.
Pipeline and export facility losses reported by NAOC and allocated to Mart and its co-venturers for March 2014 were 45,959 bbls, or 13.1% 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 March 2014 were approximately 350,750 bbls, so after deducting the actual pipeline and export facility losses allocated for March 2014, the total net crude oil deliveries less losses for March 2014 were 304,791 bbls. April 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 the Umugini pipeline has been completed and pipeline construction is ongoing. The first 35 kilometres ("km") of the pipeline have been completed and backfilled. Stringing of approximately another 16 km of pipe has been completed, and welding, coating, radiograph testing has been completed on 14 km of this 16 km section. Trenching and lowering is currently being finished on approximately 8 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. The group managing construction of the Umugini pipeline continues to estimate that pipeline construction will be completed by the end of the first half of 2014. Pipeline commissioning will occur following completion of pipeline construction and installation of pipeline pumping, monitoring and control facilities.
2014 Annual General and Special Meeting of Shareholders
Mart is pleased to announce that its Annual General and Special Meeting ("the Meeting") of Shareholders will be held at 3:00pm on Friday, June 20, 2014 at the Calgary Petroleum Club. The Meeting will be webcast for shareholders and others unable to attend the Meeting in person. Full details of the Meeting and the webcast will be provided in advance of date of the Meeting.
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 that the estimates of current month pipeline losses will reflect actual pipeline losses once reported to the Company by NAOC. 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.
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