CALGARY, ALBERTA--(Marketwired - April 15, 2013) - 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 for March 2013.
March 2013 Production Update
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 barrels of oil ("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 leads to an "over lift" position. Mart and its co-venturers therefore owe oil to Nigerian Agip Oil Company ("AGIP") for the amount of oil over lifted. Mart and its co-venturers expect to receive payment in mid-April 2013 for the over lift of 320,000 bbls shipped in March 2013 and expect to repay the over lift volume out of production subsequent to the reopening of the export pipeline.
AGIP, the pipeline operator, has advised that repairs to the export pipeline are progressing, but that the pipeline has not yet returned to normal operations. Mart will continue to monitor the situation and provide updates regarding Umusadege field operations and the status of pipeline operations as information is received from AGIP.
Pipeline and export facility losses for February 2013 as reported by AGIP were 42,270 bbls or approximately 25.5% of total crude deliveries, based on the net volume of 166,000 bbls reported as received by AGIP in February 2013.
Mart Presenting at Oil Council Asia Assembly in Hong Kong
Wade Cherwayko, Chairman and CEO of Mart, will be a presenter at the Oil Council Asia Assembly in Hong Kong on April 24-25, 2013. A link containing the location and details of the conference will be available on Mart's website under News & Presentations / Corporate Presentations - www.martresources.com .
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 regarding the duration of the current AGIP pipeline maintenance and repair disruption or that that future repairs will not be required. The current pipeline disruption and 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.
In addition, in respect of the nomination of Umusadege field oil by AGIP, while AGIP has consistently paid for oil shipments based upon the volume of oil nominated, there is no certainty that Mart and its co-venturers will continue to be paid for any or all volumes of oil nominated for delivery that is not delivered. The current lifting has resulted in a deficit oil situation from the Company and its co-venturers. There is also no assurance that the Company and its co-venturers will be able to produce sufficient quantities of oil to make up the current deficit oil that resulted from production shutdowns, particularly if there are significant future disruptions or shutdowns. There is also no assurance that AGIP will not accelerate the obligation to satisfy delivery of deficit oil.
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 VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE RELEASE.
