Continental Focus, International Reach

Mart Updates Umusadege Operations

Thursday, July 17, 2014

Mart Resources, Inc. and its partners on the Umusadege field in Nigeria, Midwestern Oil and Gas Co.(operator) and SunTrust Oil Co. Ltd. saw June production average 6,793 bpd of oil from the field. Aggregate Umusadege field downtime during June 2014 was approximately 11.3 days due to a shutdown of the Nigerian Agip Oil Company Ltd. (NAOC) export pipeline resulting from a lack of storage capacity at the Brass River export terminal due to export shipment delays.

The field also saw other operational interruptions resulting from general pipeline repairs and maintenance. The average field production based on producing days was 10,871 bpd in June.

Total net crude oil deliveries into the NAOC export pipeline from the Umusadege field for June 2014 were approximately 203,786 barrels before pipeline losses. Mart estimates pipeline and export facility losses for June 2014 at approximately 46,353 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 June 2014 less estimated pipeline losses will be 157,433 barrels.

Mart reported that construction of the Umugini pipeline and tie-in are nearing completion. Pressure testing of the 23 and 28 km sections of the pipeline is now complete. Delays in obtaining work permits and specialty pipeline equipment have been resolved. Controls, tanks, pumps, and pig launcher facilities are being installed on the upstream end of the pipeline, while the measurement and pig receiver facilities are being installed on the downstream end. The final road crossing to the tie-in manifold is complete. Planning for the commissioning, start-up, and operation of the pipeline including finalization of the Crude Handling Agreement is ongoing. Midwestern, which is managing the construction and operation of the Umugini pipeline, is targeting a completion date in late July or August 2014.

The partners have also been drilling during the period and saw the UMU-3 sidetrack operations have been completed. Total depth of the UMU-3 well is 8,549 ft and a sand screen completion has been installed in the 787 ft lateral section in the VI sand. Extended production testing is expected to commence shortly with results expected by the end of July. The rig is being moved to the UMU-4 well to execute a similar horizontal side-track, targeting the VII sand.


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