Mart Resources, Inc.
TSX VENTURE : MMT

Mart Resources, Inc.

February 14, 2011 09:28 ET

Mart Resources, Inc.: Umusadege Field Production Increases To All-Time High of 8,533 Bopd

CALGARY, ALBERTA--(Marketwire - Feb. 14, 2011) - 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 Ltd., provide the following production and drilling update at the Umusadege field.

We are pleased to announce that production at the Umusadege Field has reached an all-time high of 8,533 barrels oil per day ("bopd") and that drilling activities are progressing at the UMU-7 well.

UMUSADEGE PRODUCTION UPDATE

The Umusadege field is currently producing at 8,533 bopd from three wells: the UMU-1 well at 2,005 bopd from the XIIa and XIIb sands; the UMU-5 well at 2,477 bopd from the IX sand; and the UMU-6 well at 2,164 bopd from the XIIIa sand and 1,887 bopd from the XVII sand. Completion of repairs on pumps at third party owned and operated export facilities has resulted in this increased production level compared to levels announced on January 19, 2011.

Midwestern, Suntrust and Mart are negotiating with the third party pipeline owners and the crude oil export company to further increase the export allocation for the Umusadege field to accommodate additional production from existing and future wells. Upon completion of these negotiations, it is anticipated that the aggregate gross Umusadege field production could increase to between 9,000 and 10,000 bopd from the current three wells on production.

The UMU-6 well was completed in December 2010 with a dual 3 ½ inch and 2 ⅞ inch tubing string configuration. The XVII, XVI and XIIIb sands were completed in the 3 ½ inch tubing string and the XIIIa sand was completed in the 2 ⅞ inch tubing string. As a result of the completion technology used, the four zones that have been completed can be opened and closed at any time. Although four zones have been completed and tested it is not technically feasible to produce the UMU-6 well from all four zones simultaneously due mainly to capacity limitations in the tubing and initial pressure differential between the sands. In accordance with good oil field practices and well test results, production is occurring from two zones at the present time. Production will be monitored over the next few months to determine the optimal combination of sands to be produced from the UMU-6 well.

In addition, to ensure there is adequate pipeline capacity to meet anticipated full Umusadege field development requirements, Midwestern, Suntrust and Mart are currently evaluating new pipeline and export options to provide increased future production capacity and to provide another independent export route. Upgrading of the permanent central production facility located at the Umusadege field to process up to 30,000 bopd is currently ongoing. 

UMU-7 WELL

The UMU-7 well has reached its objective depth in the 16-inch upper hole section of 3,685 feet and 13 ⅜ inch casing is currently being run and cemented. Once this casing is in place, a 12 ¼ inch hole will be drilled to an estimated total depth of approximately 8,800 feet and 9 ⅝ inch casing will be run. It is anticipated the UMU-7 well will then be tested, completed and placed on production.

As previously announced, it is planned that the UMU-7 well will be completed as a dual tubing string configuration allowing for the potential of multiple zones to be produced from the same well bore. The UMU-7 well's primary objectives are the previously identified VIII sand and the new X11c, XIV and XV sands that were discovered by the UMU-6 well in December 2010. The UMU-7 well is being drilled from the same three-slot drilling pad as the recently drilled and completed UMU-6 well. The third slot on the pad will be used to drill the UMU-8 well. 

Chairman's comment:

Wade Cherwayko, Chairman and CEO of Mart Resources Inc, said "The UMU-6 well represents a significant milestone, having more than doubled Umusadege production from the 2010 average of 3,938 bopd to 8,533 bopd. With drilling activity continuing on UMU-7 well and future development drilling, we also look forward to further increases in production in the near term."

ABOUT MART RESOURCES:

Mart 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 Co. Plc (the Operator of the field) and SunTrust Oil Ltd. Mart also owns two land drilling rigs, has strong local relationships and experience and is evaluating additional proven undeveloped opportunities in Nigeria.

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 fluctuates depending on whether the Umusadege field is at a "before payout" or "after payout" stage.

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 drilling phase of the UMU-7 well, the future results or success of drilling operations, the ability of the Company to successfully complete and commercially produce, transport and sell oil from the Umusadege field, the ability of the Company to successfully drill other wells on the Umusadege field and the ability of the Company to fund future drilling operations should all be viewed as forward-looking statements. Production rates are variable and there are many factors that affect production rates. There is no assurance that future production levels referenced in this press release will be achieved. Current flow rates from the Umusadege field are not necessarily indicative of future production rates and may change materially.

In addition to the foregoing, certain factors can affect the ability of the Company to produce or deliver oil. 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 be possible to predict how long such disruptions may last or how long a production 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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