SYS-CON MEDIA Authors: Yeshim Deniz, Elizabeth White, Peter Silva, Liz McMillan, Pat Romanski

News Feed Item

Mart Resources, Inc.: Operations and Production Update

CALGARY, ALBERTA -- (Marketwired) -- 07/16/14 --


--  Umusadege field production averaged 6,793 barrels of oil per day
    ("bopd") during June 2014 based on calendar days; average field
    production based on production days was 10,871 bopd during June 2014. 
    
--  Umusadege field net deliveries into the export pipeline were
    approximately 203,786 barrels of oil ("bbls") in June 2014 before
    pipeline losses and approximately 157,433 bbls after deducting pipeline
    and export facility losses estimated by Mart for June 2014 based upon
    the 12-month rolling average rate of actual pipeline and export facility
    losses. 
    
--  Pipeline and export facility losses reported and allocated to Mart and
    its co-venturers for May 2014 were 73,237 bbls, or 22.7% of total crude
    oil deliveries into the export pipeline. 
    
--  Aggregate downtime during June 2014 totaled approximately 11.3 days. 
    
--  Umugini pipeline construction is essentially complete and the upstream
    and downstream tie-ins are in progress. 
    
--  The UMU-3 side-track horizontal well was completed and flow testing from
    the VI sand is scheduled to begin shortly. The rig is being moved to the
    UMU-4 location for a horizontal side-track well targeting a completion
    in the VII sand. 

Mart Resources, Inc. (TSX:MMT) ("Mart" or the "Company") and its co-venturers, Midwestern Oil and Gas Company Plc. ("Midwestern", Operator of the Umusadege field) and SunTrust Oil Company Limited are providing the following updates on Umusadege field production for June 2014 and other operations.

June 2014 Production Update

Umusadege field production during June 2014 averaged 6,793 bopd. Aggregate Umusadege field downtime during June 2014 was approximately 11.3 days due to (1) a shutdown of the Nigerian Agip Oil Company Limited ("NAOC") export pipeline resulting from a lack of storage capacity at the Brass River export terminal due to export shipment delays, and (2) other operational interruptions resulting from general pipeline repairs and maintenance. There were two full down days during the month. The average field production based on producing days was 10,871 bopd in June 2014.

Total net crude oil deliveries into the NAOC export pipeline from the Umusadege field for June 2014 were approximately 203,786 bbls before pipeline losses. Based upon the 12-month rolling average rate of pipeline and export facility losses from June 2013 to May 2014 of 22.75%, Mart estimates pipeline and export facility losses for June 2014 will be approximately 46,353 bbls. Using this estimated pipeline and export facility loss volume, Mart estimates that the total net crude deliveries into the NAOC export pipeline from the Umusadege field for June 2014 less estimated pipeline losses will be 157,433 bbls.

Pipeline and export facility losses reported by NAOC and allocated to Mart and its co-venturers for May 2014 were 73,237 bbls, or 22.7% of total crude oil deliveries into the export pipeline for that month. Pipeline and export facility losses allocated to Mart and its co-venturers from January to May 2014 have averaged 16.6% of total crude oil deliveries into the export pipeline for 2014.

As previously announced, total net crude oil deliveries into the export pipeline from the Umusadege field for May 2014 were approximately 322,086 bbls. Accordingly, after deducting the actual pipeline and export facility losses allocated for May 2014, the total net crude oil deliveries less losses for May 2014 were 248,849 bbls. Mart previously estimated pipeline and export facility losses for May 2014 to be approximately 73,971 bbls, based upon the 12-month rolling average rate of pipeline and export facility losses of 22.97% between May 2013 and April 2014. June 2014 pipeline and export facility losses have not yet been reported by NAOC.

Umugini Pipeline Update

The Umugini pipeline construction and tie-in are nearing completion. Pressure testing of the 23- and 28-kilometer sections of the pipeline is now complete. Delays in obtaining work permits and specialty pipeline equipment have been resolved. Controls, tanks, pumps and pig launcher facilities (for cleaning the line) are being installed on the upstream end of the pipeline, while the measurement and pig receiver facilities are being installed on the downstream end. The final road crossing to the tie-in manifold is complete. Planning for the commissioning, start-up and operation of the pipeline including finalization of the Crude Handling Agreement is ongoing. Midwestern, which is managing the construction and operation of the Umugini pipeline, is targeting a completion date in late July or August 2014.

Umusadege Drilling Update

Drilling operations have been completed on the UMU-3 side-track horizontal well. Total depth of the UMU-3 well is 8,549 feet and a sand screen completion has been installed in the 787 foot lateral section in the VI sand. Extended production testing is expected to commence shortly with results expected by the end of July. Further updates will be provided once testing is completed. Meanwhile, the rig is being moved to the UMU-4 well to execute a similar horizontal side-track, targeting the VII sand.

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.

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 there will not be future disruptions of the NAOC pipeline or Brass River export terminal. Any future disruptions will materially and adversely affect the ability of the Company to transport, deliver and sell its crude oil production from the Umusadege field. Statements (express or implied) concerning the allocation of export and pipeline capacity to the Umusadege field from their third party pipeline owners, should also be viewed as forward looking statements. Pipeline and export facilities losses are expected to continue in the future and such losses could be material. There is no assurance that there will not be adjustments to previously reported pipeline losses. There is no assurance that the estimates of current month pipeline losses will reflect actual pipeline losses once reported to the Company by NAOC. There is no assurance regarding that the completion of the Umugini pipeline will be completed by the end of July 2014 or that all equipment, agreements or approvals required to commission, operate or transport oil through the Umugini pipeline will be received in a timely fashion or at all.

There is no assurance that the Company will be able to successfully test the UMU-3 horizontal well sidetrack, or commercially produce, transport or sell oil from the UMU-3 well (or any one or more of the sands identified by the UMU-3 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-3 well (or any one or more of the hydrocarbon sands identified by the UMU-3 well) or the UMU-4 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.

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.

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

Contacts:
Mart Resources, Inc. - London, England office
Wade Cherwayko
+44 207 351 7937
[email protected]

Mart Resources, Inc. - London, England office
Dmitri Tsvetkov
+44 207 351 7937
[email protected]

Mart Resources, Inc. - Canada
Sam Grier
403-270-1841
[email protected]
www.martresources.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In his session at DevOps Summit, Tapabrata Pal, Director of Enterprise Architecture at Capital One, will tell a story about how Capital One has embraced Agile and DevOps Security practices across the Enterprise – driven by Enterprise Architecture; bringing in Development, Operations and Information Security organizations together. Capital Ones DevOpsSec practice is based upon three "pillars" – Shift-Left, Automate Everything, Dashboard Everything. Within about three years, from 100% waterfall, C...
SYS-CON Events announced today that Plutora, Inc., the leading global provider of enterprise release management and test environment management SaaS solutions, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Headquartered in Mountain View, California, Plutora provides enterprise release management and test environment SaaS solutions to clients in North America, Europe and Asia Pacific. Leading companies ...
SYS-CON Events announced today that Open Data Centers (ODC), a carrier-neutral colocation provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Open Data Centers is a carrier-neutral data center operator in New Jersey and New York City offering alternative connectivity options for carriers, service providers and enterprise customers.
Skeuomorphism usually means retaining existing design cues in something new that doesn’t actually need them. However, the concept of skeuomorphism can be thought of as relating more broadly to applying existing patterns to new technologies that, in fact, cry out for new approaches. In his session at DevOps Summit, Gordon Haff, Senior Cloud Strategy Marketing and Evangelism Manager at Red Hat, will discuss why containers should be paired with new architectural practices such as microservices ra...
Thanks to Docker, it becomes very easy to leverage containers to build, ship, and run any Linux application on any kind of infrastructure. Docker is particularly helpful for microservice architectures because their successful implementation relies on a fast, efficient deployment mechanism – which is precisely one of the features of Docker. Microservice architectures are therefore becoming more popular, and are increasingly seen as an interesting option even for smaller projects, instead of bein...
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures...
SYS-CON Events announced today that Blue Box has been named “Bronze Sponsor” of SYS-CON's DevOps Summit New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Blue Box delivers Private Cloud as a Service (PCaaS) to a worldwide customer base. Built on a technology platform leveraging decades of operational expertise in cloud and distributed systems, Blue Box Cloud is a managed private cloud product available in both hosted and on-prem versions. Each Blue Box ...
SYS-CON Events announced today that Vicom Computer Services, Inc., a provider of technology and service solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. They are located at booth #427. Vicom Computer Services, Inc. is a progressive leader in the technology industry for over 30 years. Headquartered in the NY Metropolitan area. Vicom provides products and services based on today’s requirements...
This builds on Puppet Labs' first class Windows support, including native .MSI packages for x32 and x64 operating systems, modules to extend common Windows server management tools, including Powershell, and integrations with Microsoft Azure and Visual Studio. By automating common Windows administration tasks, Puppet Labs is enabling users to adopt DevOps practices, thereby reducing the time needed to deploy applications from weeks to hours.
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
BlueBox bridge the chasm between development and infrastructure. Hosting providers are taking standardization and automation too far. For many app developers it does nothing but spawn mayhem and more work. They have to figure out how their creations live on a pre-fab infrastructure solution full of constraints. Operations-as-a-Service is what BlueBox does. BlueBox utilizes development tools such as OpenStack, EMC Razor, Opscode’s Chef and BlueBox's proprietary tools give the power to do the unor...
Application metrics, logs, and business KPIs are a goldmine. It’s easy to get started with the ELK stack (Elasticsearch, Logstash and Kibana) – you can see lots of people coming up with impressive dashboards, in less than a day, with no previous experience. Going from proof-of-concept to production tends to be a bit more difficult, unfortunately, and it tends to gobble up our attention, time, and money. In his session at DevOps Summit, Otis Gospodnetić, co-author of Lucene in Action and founder...
What’s inside the cloud? Hard work. Cloud operators know the world inside the datacenter is gritty. Vendor marketing speak and cloudwashing quickly melt in the heat of SLAs, uptime guarantees, and users who want it now. In his session at DevOps Summit, Hernan Alvarez, Chief Product Officer at Blue Box Group, will deliver an unvarnished look inside the world of cloud operators, from the perspective of someone who lives it. Attendees get a front-row look into the toolkits and processes that enabl...
Application metrics, logs, and business KPIs are a goldmine. It’s easy to get started with the ELK stack (Elasticsearch, Logstash and Kibana) – you can see lots of people coming up with impressive dashboards, in less than a day, with no previous experience. Going from proof-of-concept to production tends to be a bit more difficult, unfortunately, and it tends to gobble up our attention, time, and money. In his session at DevOps Summit, Otis Gospodnetić, co-author of Lucene in Action and founder...
We are all here because we are sold on the transformative promise of The Cloud. But what good is all of this ephemeral, on-demand infrastructure if your usage doesn't actually improve the agility and speed of your business? How must Operations adapt in order to avoid stifling your Cloud initiative? In his session at DevOps Summit, Damon Edwards, co-founder and managing partner of the DTO Solutions, will highlight the successful organizational, process, and tooling patterns of high-performing c...