CALGARY, ALBERTA--(Marketwire - Jan. 31, 2012) - 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 provide an operational update on the Umusadege field, onshore Nigeria.
UMU-9 Well Update
The UMU-9 well has reached a final total drilling depth of approximately 10,848 feet. As previously announced, the intermediate section drilled to 8,311 feet indicated 260 feet of gross oil pay from eleven sands based on open hole logs. 9 5/8 inch casing was run in the intermediate hole section. The lower 8 1/2 inch deviated section of the well drilled from 8,311 feet to 10,848 feet was open hole logged and indicated an additional 170 feet of gross oil pay in eight sands. This resulted in a total cumulative gross oil pay of approximately 430 feet in the 19 sands encountered by the well.
Pressure and fluid sample tests were taken on the six deepest sands in the 8 1/2 inch hole section with preliminary results indicating five sands containing light oil and condensate and one sand containing mainly gas. Further analyses are being conducted on the samples collected over these sands. The deviated 8 1/2 inch section of the well has now been cemented off, as this hole section was never intended to be completed in the UMU-9 well. Completion and testing operations are currently being conducted on the 9 5/8 section of the well. The Company has retained RPS Energy, independent reserve evaluators, to prepare new reserve reports as of December 31, 2011 and intends to update the year-end reserve report at a future date following testing of the UMU-9 well.
December 2011 Production Update
Crude oil deliveries into the export pipeline from the Umusadege field for the month of December averaged 6,230 barrels of oil per day ("bopd"). Umusadege field downtime during the month was approximately 11.5 days, mainly as a result of export pipeline maintenance and pipeline injection constraints due to limits on export storage tank capacity. The average field production based on producing days was 10,804 bopd.
January 2012 Production Update
Crude oil deliveries into the export pipeline from the Umusadege field for the period of January 1, 2012 to January 30, 2012 averaged 6,959 bopd. During this same period, there was approximately 12 days of field production downtime due to various shutdowns of the export pipeline and export storage tank capacity constraints at the third party export terminal. The average field production based on producing days was 11,754 bopd for the period.
2011 Pipeline Losses
The owners of the export pipeline have notified Mart and its co-venturers that export pipeline owner's estimate of the Umusadege field's share of crude oil lost or taken from the export pipeline during the 2011 calendar year is approximately 213,000 barrels of oil. Mart's share of the crude oil lost or taken will be calculated based upon its average share of production in 2011. The final export pipeline losses to be allocated to the Umusadege field for 2011 are expected to be reconciled with the export pipeline owner by the end of Q1 2012. Mart's share of the estimated charge will be reflected in Mart's December 31, 2011 financial statements.
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.
Investors are also welcome to contact one of the following investor relation's specialists for all corporate updates and investor inquiries:
FronTier Consulting Ltd.
Mart toll free # 1-888-875-7485
Attn: Sam Grier or Caleb Gilani
Note: 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 the drilling program for the UMU-9 well will be successful or will successfully appraise the extensions of the shallower reservoirs as contemplated, or successfully deviate the deeper untested targets. Statements (express or implied) regarding the ability of the Company to successfully complete, test and commercially produce, transport and sell oil from the UMU-9 well (or any one or more of the hydrocarbon sands identified by the UMU-9 well), should all be viewed as forward-looking statements. The well log interpretations indicating hydrocarbon-bearing sands are not necessarily indicative of future production. There is no assurance that reserves will be assigned to such hydrocarbon bearing sands.
In addition, statements (express or implied) concerning the allocation of export and pipeline capacity to the Umusadege field from the third party pipeline owners, should be viewed as forward looking statements. There is no assurance that additional pipeline export volumes will be made available to the Umusadege field. Past production levels are not necessarily indicative of future production levels. There is no assurance that the current dispute with the export pipeline owner regarding export pipeline losses will be resolved by the periods indicated or at all. There is a risk that future export pipeline losses will be attributable to the Umusadege field.
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.
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