Total crude oil deliveries into the export pipeline from the Umusadege field for February 2013 were approximately 181,000 bbls before pipeline losses. Umusadege field pipeline and export facility losses for February 2013 as reported by the operator were 42,270 bbls or approximately 25.5% of total Umusadege field crude deliveries. The high rate of loss for February was directly connected to the problems with the export pipeline that led to the pipeline being shut down in February.
Due to an ongoing shutdown of the export pipeline that started on February 24, 2013, there was no production from the Umusadege field in March 2013 due mainly to maintenance and repairs on the export pipeline performed by the pipeline operator. During March 2013 there was a shipment of crude oil of 320,000 bbls on behalf of the Umusadege field based on oil nominated for delivery. The Umusadege field's nominated and shipped oil volume was higher than the volume of oil delivered, which led to an over lift position. Mart and its co-venturers therefore owe oil to AGIP for the amount of oil over lifted. Mart and its co-venturers expect to receive payment in April 2013 for the over lift of 320,000 bbls shipped in March 2013 and expect to repay the over lift volume out of subsequent production.
Production from the Umusadege field resumed on April 17, 2013 following notice given by AGIP that maintenance and repairs to the export pipeline had been completed.
On March 26, 2013, Mart, through its wholly-owned Nigerian subsidiary, arranged a $100 million secured term loan facility with Guaranty Trust Bank PLC. The finalization of the facility is subject to completion of a facility agreement and customary security documents. The facility is comprised of a $75 million, 5 year term loan facility and a $25 million, 1 year revolving loan facility. The facilities are intended to finance capital expenditures required for further Umusadege field development activities and the Umugini Pipeline and Mart's ongoing working capital requirements. Interest is based on 90 day LIBOR, plus 4 percent (floor of 8.25 percent) and is secured by all assets of Mart Umusadege Resources Nigeria Limited, a wholly-owned subsidiary of Mart.
RESULTS OF INDEPENDENT RESERVE EVALUATIONS
2012 Highlights: December 31, 2012 Reserve Highlights of Mart's Interest:
-- Mart's total gross proved ("1P") oil reserves in the Umusadege field increased 24% to approximately 13.9 million barrels of oil ("bbls") compared to 11.2 million bbls at December 31, 2011. Mart's total proved oil reserves net of royalties is 12.9 million bbls.-- Mart's total gross proved plus probable ("2P") oil reserves in the Umusadege field increased 30% to approximately 19.3 million bbls compared to 14.9 million bbls at December 31, 2011. Mart's total proved plus probable oil reserves net of royalties is 17.7 million bbls.-- Mart's total gross proved plus probable plus possible ("3P") oil reserves in the Umusadege field increased 15% to approximately 25.4 million bbls compared to 22.0 million bbls at December 31, 2011. Mart's total proved plus probable plus possible oil reserves net of royalties is 23.1 million bbls.-- Mart's net present value of future net revenue before tax, discounted at 10%, from the 2P Umusadege field reserves as at December 31, 2012 was $785 million (compared to $782 million as at December 31, 2011).-- A prospective resource estimate for the Umusadege farmout area has been evaluated by RPS Energy Canada Ltd. ("RPS") to be 19.9 million bbls recoverable (best estimate). Mart's interest share ranges between 50% - 82.5%.