Continental Focus, International Reach

Mart Reports on Umusadege Export Flows

Tuesday, February 3, 2015

Mart Resources, Inc. and its co-venturers on the Umusadege field in Nigeria, Midwestern Oil and Gas Co. Ltd. (operator), and SunTrust Oil Co. Ltd. saw production in December from the field average 18,505 bpd resulting in total production of approximately 573,663 barrels for the month.

Although shutdowns of both the NAOC and Trans Forcados export pipelines were experienced during December 2014 due to operational interruptions for general pipeline repairs and maintenance, ongoing production from the Umusadege field was minimally affected due of the ability of the field operator to alternate production deliveries between the two export pipelines. There were no full down days during the month.

Mart said that the combined net delivery of oil from the Umusadege field through the new Umugini pipeline and NAOC export pipeline totaled approximately 570,197 barrels in December 2014 before estimated pipeline and export facility losses, and approximately 491,148 barrels after deduction of combined pipeline and export facility losses estimated for December 2014 by Mart. Combined delivery of oil from the Umusadege field through the Umugini pipeline and NAOC export pipeline reached record daily gross volumes of approximately 24,000 bpd for several days in December 2014 and a record daily volume of approximately 29,000 bpd in late January 2015.

Total net crude oil deliveries into the NAOC export pipeline from the Umusadege field for December 2014 were approximately 295,392 barrels before pipeline losses. Mart estimates NAOC pipeline and Brass River export facility losses for December 2014 will be approximately 51,568 barrels. Using this estimated pipeline and export facility loss volume, Mart estimates that the total net crude deliveries into the NAOC export pipeline from the Umusadege field for December 2014 less estimated pipeline losses will be 243,824 barrels.

NAOC pipeline and export facility losses reported by NAOC and allocated to Mart and its co-venturers for November 2014 were 24,105 barrels, or 8.2% of total crude oil deliveries into the export pipeline for that month. NAOC pipeline and export facility losses allocated to Mart and its co-venturers by NAOC from January to November 2014 have averaged 17.0% of total crude oil deliveries into the export pipeline for 2014.

As previously announced, the partners saw oil flow commence on December 3through the 51-km long Umugini pipeline and into the Trans Forcados crude oil export pipeline that connects to the Forcados oil export terminal. The volume of oil being delivered through the Umugini pipeline into the Trans Forcados export pipeline is being gradually increased, and during December 2014, gross delivery of oil from the Umusadege field into the Umugini pipeline was as high as 17,300 bpd. The Umugini pipeline experienced some expected downtime in its first month of operations as various equipment was tested and repaired. The first nomination, loading and sale of oil from the Umusadege field transported through the Umugini pipeline and Trans Forcados export pipeline occurred at the end of December 2014.

Due to the recent commencement of oil flow, Mart and its co-venturers have not yet received 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, but based upon internal production and facility data Mart estimates that Umusadege field deliveries into the Trans Forcados export pipeline connected to the Forcados oil export terminal were approximately 274,805 barrels in December 2014.


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