Mart and Its Partners Prepare for UMU-6 Development Well at the Umusadege Field
Thu Apr 22, 8:30 AM
CALGARY, ALBERTA--(Marketwire - April 22, 2010) - Mart Resources, Inc. (TSX VENTURE: MMT.V) ("Mart" or the "Company") and its partners, Midwestern Oil and Gas Company PLC (Field Operator) and Suntrust Oil Co Ltd are pleased to announce that all requisite Government approvals have been obtained, all surface land rights have been acquired and site preparation has commenced for the drilling of the UMU-6 development well located on the Umusadege Field. Two development wells are currently in production on the Umusadege Field, UMU-1 and UMU-5.
The drilling of the UMU-6 well is the first stage of Mart and its partners' 2010 development drilling program, which will also include re-completing the existing UMU-1 and UMU-5 wells from single zone to multiple zone producers. Additional development drilling on the Umusadege Field will be evaluated following completion of the drilling of the UMU-6 well.
The UMU-6 well is scheduled to be drilled as a vertical well to a depth of approximately 8,800 feet and it is anticipated that the well will be completed as a dual zone producer. The UMU-6 well is located adjacent to the producing UMU-5 and UMU-1 wells which, assuming drilling success, will allow for easy access to nearby production facilities.
Production for the Umusadege Field in the first quarter 2010 averaged 3,843 bopd. The UMU-5 well came on stream in April 2009 and has produced 777,299 barrels of oil to date, with stable production during the first quarter of 2010 averaging 2,137 barrels of oil per day (bopd). UMU-1 well production averaged 1,706 bopd in the first quarter of 2010.
Wade Cherwayko, Chairman & CEO of Mart, said "The drilling of the UMU-6 well advances the objectives of Mart and its partners to fully develop the reserves contained in the Umusadege Field. The Umusadege Field's continued stable production, averaging of 3,843 barrels of oil per day in Q1 2010, combined with firmer oil prices has enabled Mart to generate sufficient cash flow to reduce trade payables, reduce bank debt and to commence the development drilling program. Mart remains focused on increasing shareholder value over the short to medium term by developing the Umusadege Field."
About Mart Resources:
Mart Resources Inc. is an independent, international petroleum company focused on drilling, developing and producing oil and gas from low-risk proven petroleum properties in Africa. The Company owns two drilling rigs, has strong local relationships and has formed joint venture partnerships with indigenous operators in Nigeria.
All references to production levels contained in this press release are to total field production rates. A detailed description of Mart's ownership interest in the Umusadege Field in contained in the Company's Management's Discussion and Analysis filed on SEDAR at www.sedar.com.
Certain statements contained in this press release constitute "forward-looking statements" as such term is used in applicable Canadian and US securities laws. 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. In particular, statements concerning the successful drilling of the UMU-6 well, ongoing production and development of the Umusadege Field and events or projections referenced or implied herein should be viewed as forward-looking statements.
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". Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, costs and timing of exploration and production development, availability of capital to fund exploration and production development; political, social and other risks inherent in carrying on business in a foreign jurisdiction, the effects of a recessionary economy and such other business risks as discussed herein and other publicly filed disclosure documents. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such 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 not place undue reliance on forward-looking statements contained in this news release.
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Corporation 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.
This news release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. When used herein, words such as "intended" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on assumptions by and information available to the Corporation. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Actual results may differ materially from those currently anticipated. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
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Mart Resources, Inc.
London # +44 207 351 7937
Mart Resources, Inc.
Calgary # (403) 270-1841