Mart Resources, Inc. (MMT) (“Mart” or the “Company”) and its co-venturers, Midwestern Oil and Gas Company Limited (“Midwestern”, Operator of the Umusadege field) and SunTrust Oil Company Limited are providing the following updates on Umusadege field production for February 2015 and other operations.
February 2015 Aggregate Production Update
Umusadege field production during February 2015 averaged approximately 19,230 bopd resulting in total production of approximately 538,330 bbls for the month. Aggregate calculated Umusadege field downtime during February 2015 was approximately 2.0 days (based upon days with production of more than 10,000 bopd being considered to have no downtime). Although shutdowns of both the NAOC and Trans Forcados export pipelines were experienced during February 2015 due to operational interruptions for general pipeline repairs and maintenance and due to vandalism, ongoing production from the Umusadege field was minimally affected due to the ability of the field operator to alternate production between the two pipelines. The average field production based on producing days was approximately 20,680 bopd in February 2015.
The combined net delivery of oil from the Umusadege field through the new Umugini pipeline and NAOC export pipeline totaled approximately 510,040 bbls in February 2015 before estimated pipeline and export facility losses, and approximately 448,140 bbls after deduction of combined pipeline and export facility losses estimated for February 2015 by Mart.
NAOC Export Pipeline Update
Total net crude oil deliveries into the NAOC export pipeline from the Umusadege field for February 2015 were approximately 146,070 bbls before pipeline losses. Based upon the 12-month rolling average rate of pipeline and export facility losses from December 2013 to November 2014 of 17.46%, Mart estimates NAOC pipeline and Brass River export facility losses for February 2015 will be approximately 25,500 bbls. Accordingly, Mart estimates that the total net crude deliveries into the NAOC export pipeline from the Umusadege field for February 2015 less estimated pipeline losses will be approximately 120,570 bbls.
As previously announced, total net crude oil deliveries into the NAOC export pipeline from the Umusadege field for January 2015 were approximately 306,960 bbls. Actual NAOC pipeline and export facility losses have not been allocated for January 2015 because allocation was suspended by the Department of Petroleum Resources pending an approved loss computation formula. Mart previously estimated pipeline and export facility losses for January 2015 to be approximately 53,590 bbls, based upon the 12-month rolling average rate of pipeline and export facility losses of 17.46% between December 2013 and November 2014.
Umugini Pipeline Update
Mart and its co-venturers have not yet received official reports from the operators of the Trans Forcados export pipeline or the Forcados oil export terminal stating actual oil injection volumes or pipeline and export facility losses for the Trans Forcados export system. Based upon Mart’s internal production and facility data, the Company estimates that Umusadege field deliveries into the Trans Forcados export pipeline connected to the Forcados oil export terminal were approximately 363,970 bbls in February 2015. Based upon historic pipeline losses encountered by other exploration and production companies utilizing the Trans Forcados export system, Mart estimates pipeline and export facility losses of 10% of crude oil deliveries, resulting in estimated Umusadege field deliveries of approximately 327,570 bbls for February 2015 after deduction of estimated pipeline and export facility losses.
Drilling update
After completion of drilling and testing of the UMU-13 well in January 2015, the drill rig has been on standby while reviewing the 2015 capital expenditure program and finalizing a deferral of principal payments under the loan facility with a Nigerian bank to provide more flexibility in funding the 2015 capital expenditure program.
Source: Press Release
