Mart Resources, Inc.
TSX VENTURE : MMT

Mart Resources, Inc.

December 17, 2010 08:00 ET

Mart Resources Inc.: UMU-6 Well Tests at a Combined Rate of 14,319 Barrels Oil Per Day

CALGARY, ALBERTA--(Marketwire - Dec. 17, 2010) - 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 report final test results from the four production tests completed on the UMU-6 well located in the Umusadege field in Nigeria.

The UMU-6 well flowed at a stabilized combined cumulative rate of 14,319 barrels of oil per day ("bopd") from the four sands tested on choke sizes ranging between 22/64 to 32/64 inches. The API gravity ranged from 40 to 42.5 degrees with flowing tubing pressures between 410 and 610 PSI. Water production ranged between 0.1% to 1.3% and the gas/oil ratio ranged from 51 to 122 standard cubic feet per barrel.

The first and second tests flowed at stabilized rates of 3,102 bopd (from the XVII sand) and 3,433 bopd (from the XVI (b) sand) as previously announced.

The third test was conducted on the XIII (b) sand, a 23 foot oil zone, which flowed at stabilized rates of 4,179 bopd of 41.0 API gravity oil through 3 1/2 inch tubing on a 32/64 inch choke at a flowing tubing pressure of 542 PSI. Water production averaged 1.3% and the gas/oil ratio was approximately 122 standard cubic feet per barrel. 

The fourth test was conducted on the XIII (a) sand, an 18 foot oil zone, which flowed at stabilized rates of 3,605 bopd of 40.0 API gravity oil through 2 7/8 inch tubing on a 32/64 inch choke at a flowing tubing pressure of 410 PSI. Water production averaged 0.1% and the gas/oil ratio was approximately 105 standard cubic feet per barrel.

These four sands tested have not previously been assigned reserves in the Company's most recent NI 51-101 reserve report. The Company's independent engineers have commenced updating the Umusadege reserves estimates. Their report will incorporate the results from the four sands tested (the XVII, XVI (b), XIII (b) and XIII (a) sands) and will also include review of the preliminary findings on the XIV and XV sands which were also identified as hydrocarbon bearing in the UMU-6 well.

The table below summaries the test results from each of the sands:

Sand Feet Stabilized BOPD API Gravity Choke Size (inches) Pressure (PSI) Water Production Gas/Oil ratio (scf/barrel)
XVII 10 3,102 42.5 26/64 575 0.2% 51
XVI (b) 20 3,433 40.5 22/64 610 0.3% 60
XIII (b) 23 4,179 40.3 32/64 542 1.3% 122
XIII (a) 18 3,605 40.0 32/64 410 0.1% 105
Total   14,319          

Further production testing is currently underway on the four sands including co-mingling to determine the optimum flowing conditions and rates. Once the final testing is completed, the UMU-6 well will be placed on production.

Chairman's Comment:

Wade Cherwayko, Chairman of Mart Resources Inc, said "The success of the UMU-6 well tests in four new zones is a significant event for Mart, Midwestern and Suntrust. The substantial stabilized flow rates encountered from these sands confirm the existence of additional reserves in the Umusadege field. An update to the Company's reserve report is underway by our independent engineers and we look forward to announcing their findings once the new reserve report is completed."

ABOUT MART RESOURCES:

Mart Resources Inc. is an independent, international petroleum company focused on drilling, developing and producing oil and gas from low-risk proven petroleum properties in Nigeria, West Africa. The Company is currently producing and developing the Umusadege field along with Midwestern Oil and Gas Company Plc (the Operator of the field) and SunTrust Oil Company Limited. Mart also owns two land drilling rigs, has strong local relationships and experience and is evaluating additional proven undeveloped opportunities in Nigeria.

Forward Looking Statements

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, statements concerning the timing of the testing of the UMU-6 well, the future results or success of such testing operations, the ability of the Company to successfully complete and commercially produce, transport and sell oil from the UMU-6 well (or any one or more of the hydrocarbon sands identified by the UMU-6 well), the ability of the Company to successfully drill other wells on the Umusadege field and the ability to of the Company to fund future drilling operations should all be viewed as forward-looking statements. Flow rates established during initial tests are preliminary only, are not necessarily indicative of future production rates and may change materially as the UMU-6 well stabilizes. The flow rates in zones tested is not necessarily indicative that other zones will be productive, including zones where preliminary results indicate that the sands were hydrocarbon bearing. In addition to the foregoing, certain factors can affect the ability of the Company to deliver oil that may be produced and can cause production shutdowns. These can include planned maintenance programs or unpredictable and unplanned external factors such as accidental or deliberate damage to pipelines and other facilities upon which the Company is reliant. When such disruptions occur, it may not possible to predict how long such disruptions may last or how long a shutdown may occur.

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.

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

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