Mart Resources, Inc.
TSX VENTURE : MMT

Mart Resources, Inc.

September 18, 2008 09:16 ET

Mart Resources, Inc.: Update on Operational Activities

CALGARY, ALBERTA--(Marketwire - Sept. 18, 2008) - Mart Resources, Inc. ("Mart" the "Company") (TSX VENTURE:MMT) is pleased to announce the following update on operations.

Production from the Umusadege field began on April 20, 2008 from the XIIb zone in the UMU-1 well through an early production facility. Mart and its partners, Midwestern Oil & Gas Company PLC (Operator) and Suntrust Oil Company Nigeria Limited, had planned to produce the UMU-1 well initially from the XIIb and XIIa zones individually and then commingle production from the two zones simultaneously. Although production from the individual zones in the well has been successful, the initial attempts at commingled production did not produce the production increase that had been anticipated due to potential behind casing communication between the two zones. The combined total field production rate from the Umusadege field is currently 2,810 barrels of oil per day. The UMU-1 well has been produced separately from the individual reservoirs while further testing and engineering studies are undertaken. The UMU-1 well has been produced on various choke sizes during the initial production period to get a better understanding of the reservoir and optimum production rates. The well is currently flowing from the XIIb zone at a total production rate of 2,630 barrels of oil per day with 17 % water and sediment. One possible cause for the increased water production in the XIIb zone could be the result of behind casing communication issues mentioned above.

The UMU-3 well that commenced production on July 22, 2008 is currently producing at a total production rate of 180 barrels oil per day with 56 % water and sediment. The production rate has been restricted due to surface facility constraints which are currently being addressed. The well has also shown signs of down hole problems including a leaking production packer and communication with the production tubing that may have caused the increase in water production. A well work-over is scheduled to be done in the near term to repair the down hole production equipment.

The UMU-5 well that spudded on July 31, 2008 has experienced delays as a result of significant sand caving, creating mechanical problems while drilling the upper large diameter hole section, in addition to some drilling equipment break-downs. These issues are currently being resolved and normal drilling operations will resume shortly. UMU-5 drilling operations are estimated to be 3 weeks behind schedule as a result of these problems. Assuming successful drilling and completion, the UMU-5 well is anticipated to provide production from additional oil reservoirs of the 11 hydrocarbon zones which lie above the XIIa and XIIb zones in the UMU-1 well.

Mart and its partners intend to drill further development wells following completion of UMU-5 and, assuming that the wells are commercially successful, it is anticipated these would lead to additional production from the field.

At the KE field, Mart and its partner Del-Sigma Petroleum Nigeria Limited have commenced drilling site preparation which includes dredging an access channel through a swamp area to dry land, constructing a jetty and building a road and drilling pad on dry land. Subject to timely completion of this work and receipt of all requisite approvals, drilling operations are anticipated to commence in Q1 2009.

As announced on September 10, 2008, Mart and its partner, Network Exploration and Production Nigeria Limited commenced drilling operations on the Qua Ibo field.

As a consequence of its active drilling campaign at the Umusadege field, commencement of drilling operations at Qua Ibo field and ongoing drilling site preparations at Ke field, Mart believes that it is now well positioned for future growth.

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 Africa. The Company owns two drilling rigs, has strong local relationships and has formed joint venture partnerships with indigenous operators in Nigeria. Based on these factors Mart has successfully acquired interests in and begun development of a portfolio of three on-shore Nigerian oil fields. Mart's first oil production commenced in April 2008 from the Umusadege field.

Certain statements in this News Release constitute forward-looking statements under applicable securities legislation. Such forward-looking statements involve 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. Forward-looking statements in this new release include but are not limited to references, whether actual or implied, to future production levels Umu-1 and Umu-3 wells and references to successful drilling and testing of the Umu-5 well and to any future production therefrom. By its very nature, such forward-looking information requires Mart Resources, Inc. to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information. In particular, there is no assurance that the Umu-1 and Umu-3 wells will continue to produce at current levels or that the Umu-5 well will be successful or that if successful, that the well will be commercially producible. All references to production levels contained in this press release are to total field production rates at the wellhead and are before the deduction of interests to third parties.

Furthermore, the forward-looking information contained in this news release is made as of the date of this news release and, except as required by applicable law, Mart Resources, Inc. does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the release.

Contact Information