CALGARY, ALBERTA -- (Marketwire) -- 12/12/12 -- 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 providing the following update on Umusadege field production and drilling operations.
November 2012 Production Disruptions
Due to an ongoing shutdown of the export pipeline that started on October 30, 2012, there was no production from the Umusadege field in November and December 2012. At the beginning of November 2012 there was a shipment of crude oil produced in October 2012 of 320,000 barrels of oil ("bbls"). Nigerian Agip Oil Company ("AGIP"), the pipeline operator, has advised that while repairs to the export pipeline have commenced, the nature of the damage has prevented a temporary repair and that a partial replacement of the line is required. The damaged pipeline is located in a river crossing. AGIP advises that it is working diligently to repair the export pipeline to enable the restoration of normal pipeline operations at the earliest possible date.
The Brass River Export Terminal, where oil production from the Umusadege field is shipped, continues to experience loading delays and AGIP has extended its previous declaration of force majeure on loadings at the Brass River Export Terminal due to flooding.
As a consequence of the foregoing, all Umusadege field production shipped through the AGIP export pipeline continues to be shut-in pending AGIP's repair of the export pipeline and the reopening of the Brass River Export Terminal. Mart and its co-venturers will continue to monitor the situation.
Pipeline and export facility losses for October 2012 as reported by AGIP were 56,874 bbls or approximately 17.7% of total crude deliveries (losses for September 2012 as reported by the pipeline operator were 40,018 bbls or approximately 11.6% of total crude deliveries). Pipeline and export facility losses as reported by AGIP from the beginning of the year to end of October 2012 are approximately 13.6% of total crude deliveries for that period.
UMU-10 Well Update
As previously announced, the UMU-10 well encountered 479 foot gross hydrocarbon pay in 20 sands. Six of these sands, XVIIa & XVIIb (commingled), XVIIIa, XIX, XXb, and XXI have been perforated. Sands will be tested, and completed for production. Any two of these zones can be produced simultaneously using dual tubing string sliding sleeve completion technology. Operations to prepare to flow test the six targeted sands in the UMU-10 well have been progressing and is approximately 80% completed. The long string (3 1/2 inch) completion has been installed, and the short string (2 7/8 inch) installation is currently underway. The sands completed in UMU-10 will access 161 feet of the total 479 feet of gross pay in the well.
Shell Export Pipeline
Mart and its co-venturers are continuing their negotiations with an affiliate of Royal Dutch Shell plc. ("Shell") to complete a crude handling agreement that will enable plans to move forward to provide a second independent export pipeline for Umusadege field production. Mart and its co-venturers will then gain access to Shell's export facilities and a 50-kilometer pipeline will be constructed. The pipes have been manufactured and loaded on a ship heading for Nigeria and expected to arrive in the third week of December 2012.
Most Popular Stories
- SEO Traffic Lab Celebrate Wins at Digital Marketing Event 'Internet World 2013' in London
- Social Media Initiatives Should Follow Customers' Lead
- Apple CEO: Offshore Units Not a 'Tax Gimmick'
- U.S. Senate Accuses Apple of Large-scale Tax Avoidance
- UTEP Water Recycling Project Wins Venture Titles
- Marketo Makes a Mint in IPO: Stock Shoots Up More than 50 Percent
- Bieber Booed at Billboard Awards
- Crude Oil Up, Gasoline Down
- Austin Startup Compare Metrics Raises $3.5 Million for Expansion
- Why So Many Top 'Car Guys' Are Actually Women