A summary of the unrisked Prospective Resource volumes on the Umusadege farmout (100% working interest) set out in the RPS Resource Evaluation is included in the following table. Resources volumes are stated in million barrels ("MMbbl").
Prospective Recoverable Low Estimate Best Estimate High Estimate Resources (unrisked) MMbbl MMbbl MMbblUmusadege Farmout Area 9.4 19.9 38.0
The recoverable oil and condensate volumes in the above table are for the full asset (100% working interest). Mart's interest share is between 50% - 82.5% depending on cost recovery. During cost recovery Mart is entitled to 82.5% of field cash flow, and after cost recovery Mart retains 50% of field cash flow. Mart is able to use Umusadege cash flow from existing production to recover costs from exploration and appraisal drilling.
The risks associated with the Prospective Resources vary depending on the specific prospect, however the Geological Probability of Success ("GPoS") attributed by RPS to the prospective horizons generally vary between 15% and 50%. The prospects are in the immediate vicinity to the proved reserves at Umusadege, which reduces the risk associated with the source rock and hydrocarbon system.
In order to bring these Prospective Resources into the Reserves category, an exploration well and production test is required to prove the existence of hydrocarbons and their commerciality. The production of any discovered hydrocarbons also needs to be included in the current Umusadege field development plan in order to qualify for reserves. If successful, the exploration wells planned by Mart and its co-venturers to drill the prospects would be available for tie-in to the production gathering system. Therefore, in the event of exploration success, Mart expects to add any future discovered volumes to the reserves category. Exploration success is defined as discovery of hydrocarbons that can be commercially produced under current economic and technological conditions. Mart and its co-venturers plan to drill at least one of these prospects during 2013.
Wade Cherwayko, Chairman & CEO of Mart said, "We are very pleased to report strong financial and operating results for 2012 with $58.0 million of net income, which amounts to $0.168 per share. The Company declared dividends totaling $0.20 per common share in 2012, and declared a dividend of an additional $0.05 per common share at the end of Q113. These results continue to demonstrate the significance of the Umusadege field's production capacity, and despite significant interruptions to production in 2012, Mart's share of the volume oil produced and sold exceeded the volume produced and sold in 2011. The Company continues to work towards maximizing production and increasing reserves. The construction of an additional export pipeline will enable the Umusadege co-venturers to fully exploit the potential of the Umusadege field. Our drilling program scheduled for 2013 includes the UMU-11 well, expected to begin drilling operations in Q213, and additional development drilling activities are planned for the remainder of 2013."
Mart will hold a conference call to discuss the operational and financial results for the year and quarter ended December 31, 2012. The conference call is scheduled for April 24, 2013 at 10:30 AM Mountain Daylight Time (12:30 Eastern Daylight Time). Wade Cherwayko, Chairman & CEO of Mart, and Dmitri Tsvetkov, Chief Financial Officer of Mart, will host the call and be available during the question-and-answer session. To access the conference call, please dial 1-866-226-1793 or 416-340-2216. An instant replay of the call will be available until May 1, 2013 by dialing 1-800-408-3053 or 905-694-9451 and entering pass code 3531510.