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Enter Symbol
or Name
USA
CA



Mart Resources Inc
Symbol MMT
Shares Issued 356,941,046
Close 2014-12-02 C$ 0.70
Market Cap C$ 249,858,732
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Mart's Umusadege JV starts oil flow via Umugini pipeline

2014-12-03 10:58 ET - News Release

Mr. Wade Cherwayko reports

MART RESOURCES, INC.: OIL FLOW COMMENCES THROUGH UMUGINI PIPELINE

Mart Resources Inc. and its co-venturers, Midwestern Oil and Gas Company PLC (operator of the Umusadege field) and SunTrust Oil Co. Ltd., have provided the following update on Umugini pipeline operations.

Oil flow has commenced through the 51-kilometre-long Umugini pipeline and into the Trans Forcados crude oil export pipeline system that connects to the Forcados oil export terminal. The commencement of continuous oil injections from the 12-inch Umugini pipeline to the Trans Forcados export pipeline followed the completion of pipeline tie-in at the Eriemu flow station and other start-up activities including line fill. Mart holds an effective 15-per-cent interest in Umugini Asset Co. Ltd., which is the owner of the Umugini pipeline.

All agreements that are required to allow the shipment of crude oil to Forcados oil export terminal have been completed and signed by all necessary parties. Mart and its co-venturers plan to gradually increase the volume of oil delivery through the Umugini pipeline in order to regulate Umugini pipeline start-up operations and optimize production from the Umusadege field. The Umugini pipeline has an initial estimated gross export capacity of 45,000 barrels of oil per day. The Umusadege field has been allocated approximately 75 per cent of Umugini pipeline capacity. The nomination, loading and sale of oil from the Umusadege field are expected to commence in the next 30 days.

The Umugini pipeline opens up a second export route for Umusadege field oil production, and is expected to enable Mart and its co-venturers to significantly increase the Umusadege field's present production and to accommodate future production increases, including from the recently drilled horizontal wells. The commencement of continuous oil injections through the Umugini pipeline also enables Mart and its co-venturers to balance the delivery of crude oil between the Forcados oil export terminal and the Agip Kwale export hub. The utilization of multiple delivery and export routes is expected to result in an improvement in export flexibility and a reduction in pipeline disruptions. Full transport capability of the Umugini pipeline is expected to be reached in the first quarter of 2015.

Wade Cherwayko, chairman and chief executive officer of Mart, commented: "The commencement of oil flowing through the Umugini pipeline is a significant milestone for Mart and its co-venturers, Midwestern and SunTrust. The Umugini pipeline will provide additional export capacity, and will enable Mart and its co-venturers to more fully optimize the current production potential of the Umusadege field. We are very pleased that the Umugini pipeline is now up and running, and look forward to having the capacity to increase production from the Umusadege field to significantly higher volumes in the near future."

Additional information regarding Mart is available on the company's website and under the company's profile on SEDAR.

Except where expressly stated otherwise, all production figures set out in this press release, including barrels of oil per day, 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 per cent (before capital cost recovery) and 50 per cent (after capital cost recovery).

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