UMU-10 Ready for Logging

Mart Resources, Inc. and its co-venturers Midwestern Oil and Gas Company Plc. (operator) and SunTrust Oil Co. Ltd. updated production totals for the Umusadege field in Nigeria during August and September. They also updated drilling activities on the UMU-10 well.

Mart reported that the Umusadege’s production during August 2012 averaged 12,131 bpd and averaged 11,303 bpd during September 2012. The average daily production in August and September 2012 was slightly lower than in July 2012 due to decreased export pipeline capacity allocated to the Umusadege field.

The UMU-10 well reached a final total drilling depth of approximately 9,757 ft. The next phase of operations will include open hole well logging, conducting pressure surveys on prospective zones, and acquiring fluid samples. Well operations will then continue with running 9-5/8 inch casing in the open hole. The primary objectives of the UMU-10 is the oil-bearing sands identified in the 8-1/2 inch deviated hole section of the UMU-9 well. The oil-bearing sand discoveries from UMU-9 account for 170 ft of gross oil pay. Based on UMU-10 preliminary results from logging-while-drilling (LWD) technology, the target sands identified by the UMU-10 well have been similar in thickness to those encountered in the UMU-9 well. Up to four of these sands could be completed in UMU-10. The completion and testing of the UMU-10 well is expected to take approximately 45 to 60 days.

Mart and its co-venturers also reported that they are nearing the conclusion of negotiations with an affiliate of Shell to complete a crude handling agreement that will enable plans to move forward to provide a second independent export pipeline for Umusadege field production. The partners will then gain access to Shell's export facilities and a 50 km pipeline will be constructed. Construction of the pipeline connecting the Umusadege field to Shell’s export facilities is expected to be completed and in service by Q4 2013.