Mart Resources, Inc.

Mart Resources, Inc.

July 25, 2014 08:30 ET

Mart Resources, Inc.: UMU-3 Well Flow Test Results and Drilling Update

- Initial flow testing of the VI sand for the UMU-3 side-track horizontal well resulted in a flow rate of 4,893 barrels of oil per day ("bopd").

- The drilling rig has been moved to the UMU-4 well location and operations to drill a side-track horizontal well are scheduled to begin shortly.

CALGARY, ALBERTA--(Marketwired - July 25, 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 pleased to provide the following updates on Umusadege field drilling and flow testing operations.

UMU-3 Side-Track Horizontal Initial Well Flow Test Results

The UMU-3STH well, a horizontal side track of the original UMU-3 well, was drilled to target the oil bearing VI sand, which has average gross pay thickness in excess of 35 feet. The well was completed over a 787 foot horizontal section.

During initial flow testing, the well was tested at multiple choke settings ranging from 16/64 up to 40/64 over a 28 hour test period. In all tests, no sand production or water production was observed. The testing of the VI sand yielded an oil rate of 4,893 bopd of 26.6 API crude oil on a 40/64 choke setting and flowing tubing head pressure of 190 psig during a three hour flow test. Basic sediment and water ("BS&W") was less than 0.5%. During the final test at choke setting of 40/64, the well was still showing signs of cleaning up, with gradually increasing flow rates. Therefore, the rate stated here is not defined as stabilized, but observed during cleanup and flow testing.

The foregoing test results should be considered as preliminary. Readers are cautioned that the test results herein are not necessarily indicative of long-term performance or of ultimate recovery.

UMU-4 Side-Track Horizontal Well

The drilling rig has been moved to the UMU-4 well location and is now rigged up on location. Operations to drill a side-track horizontal well targeting the VII sand are scheduled to begin shortly.

Additional information regarding Mart is available on the Company's website at and under the Company's profile on SEDAR at

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.

There is no assurance that the Company will be able to commercially produce, transport or sell oil from the UMU-3 side track horizontal well (or any one or more of the sands identified by the UMU-3STH well). There is also no assurance that the Company will be able to execute a successful horizontal well sidetrack of the UMU-4 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-3STH well (or any one or more of the hydrocarbon sands identified by the UMU-3STH well) or the UMU-4 well, should all be viewed as forward-looking statements. The foregoing test results should be considered as preliminary. The well log interpretations indicating hydrocarbon-bearing sands are not necessarily indicative of future production or ultimate recovery. 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 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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