MER Meritus Minerals Ltd

--  From the three sands tested to date, the UMU-10 well has produced at a
    combined rate of 5,019 barrels of oil per day ("bopd") from the XXI,
    XVIIa, and XVIIb oil sands, and 609 barrels of condensate per day from
    the XVIIIa gas/condensate sand.

--  3,076 bopd stabilized flow rate achieved during maximum efficient rate
    ("MER") testing from the XVIIa & XVIIb oil sands (commingled) on a 32/64
    choke.

--  609 barrels per day ("bpd") of condensate, and 4.26 million cubic feet
    per day ("MMcf/d") of gas stabilized flow rates achieved during MER
    testing from the XVIIIa gas sand on a restricted 20/64 choke.

--  The rig has now been skidded to the last drill slot on the pad and the
    rig is being set up and upgraded to prepare for the UMU-11 well. It is
    anticipated that the UMU-11 well will spud during March 2013 to develop
    previously appraised oil reservoirs.

--  The Operator plans to return to the UMU-10 well to carry out testing
    operations on the two remaining untested oil zones following the
    drilling of UMU-11.

--  The construction contract for the Umugini pipeline has been awarded, and
    it is anticipated that ditching operations will commence shortly.



Mart Resources, Inc. (TSX VENTURE:MMT) ("Mart" or the "Company") and its
co-venturers, Midwestern Oil and Gas Company Plc. (Operator of the Umusadege
field) and SunTrust Oil Company Limited (together "the Co-venturers") are
pleased to announce additional flow rate test results for the UMU-10 well, and
provide the following update on Umusadege field operations and progress on the
new export pipeline. 


UMU-10 Well Test Results

The UMU-10 well encountered 479 feet of gross hydrocarbon pay in 20 sands. Six
of these sands, XVIIa & XVIIb (commingled), XVIIIa, XIX, XXb, and XXI, have been
perforated and completed for production. Any two of these sands can be produced
simultaneously using dual string sliding sleeve completion technology. The sands
completed in UMU-10 are expected to access 161 feet of the total 479 feet of
gross pay in the well.


Flow rate tests conducted during initial testing operations have now been
completed on the XVIIa & XVIIb (commingled) sands and the XVIIIa sand. A
stabilized flow rate of 3,076 bopd was recorded from the 33 foot (gross pay)
XVIIa & XVIIb commingled sands of 49 API gravity oil through 2 7/8 inch tubing
(short string) on a 32/64 inch choke at a flowing tubing pressure of 680 psi.
Water production has reduced to zero after cleanup with a gas/oil ratio of 125
standard cubic feet per barrel.


The flow rate tests of the 18 foot (gross pay) XVIIIa gas/condensate sand
recorded a stabilized test rate of 609 bpd of condensate and 4.26 MMcf/d of gas
during testing operations conducted through 2 7/8 inch tubing (short string) on
a 20/64 inch choke at a flowing tubing pressure of 2,400 psi. The well flowed
gas and 53 API gravity condensate with basic sand and water ("BS&W") of 11%.


The gas/condensate sand completed in XVIIIa is expected to be produced after the
XVIIa & XVIIb sands are fully depleted. This is consistent with the field
development strategy of the Operator, which focuses on bringing the oil zones on
production in the near term through additional development drilling. The gas
from the XVIIIa sand is expected to be utilized as fuel for the new central
processing gas fired generators.


As previously announced, the first extended flow rate test was conducted on the
XXI sand, the deepest of the sands to be tested, at a stabilized rate of 1,943
bopd during initial well testing. During the test of the XXI sand, the well
flowed 55.3 API gravity oil through 3 1/2 inch tubing on a 28/64 inch choke at a
flowing tubing pressure of 1,260 psi. BS&W was 5% with a gas/oil ratio of
approximately 588 standard cubic feet per barrel. 


The Operator plans to return to the UMU-10 well after drilling the UMU-11 well
to carry out the remaining testing operations on sands XXb and XIX in the long
string. Using a coiled tubing unit, the multirate flow testing will then be
performed on all sands completed in the long string: XIX, XXb, and XXI. 


Umusadege Field Development Activity Update

Field development is continuing with the UMU-11 well, to be drilled from the
same surface location as UMU-9 and UMU-10. The rig has been skidded to the last
drill slot on the existing drill pad and the rig is being set up and upgraded to
prepare for the UMU-11 well. The well is expected to spud during March 2013. The
oil reservoirs expected to be completed in the UMU-11 well are the XIIb, XIIc,
XVIa, and XVIb sands, which had a combined 79 feet of oil pay in UMU-10.


During 2013, horizontal wells are anticipated to be drilled to develop the
shallow oil reservoirs in the main accumulation. Sourcing of a second rig has
begun, which, if successful, will perform the horizontal drilling activities.
Once a second rig has been leased and mobilized, horizontal drilling is
anticipated to begin with the horizontal sidetrack wells from the existing UMU-3
and UMU-4 vertical wellbores.


The new Central Production Facility is expected to be commissioned during March
2013. This facility has been designed to handle the full field capacity
anticipated from the existing reserves, as well as the potential for prospective
resources in the field.


March 2013 Production Update

Umusadege field production has been down the first 11 days of March 2013 due to
maintenance being performed on the export pipeline by the pipeline operator. The
pipeline operator has advised that the pipeline will be operational at the
beginning of next week.


Umugini Pipeline and Shell Export Pipeline

Mart and its co-venturers are proceeding with plans to provide a second
independent export pipeline for Umusadege field production. The construction
contract for the Umugini pipeline has been awarded, and more than 90% of the
pipe has arrived by truck to the Umusadege site. It is anticipated that ditching
operations will commence shortly. The pipeline contractor will begin working
from two locations: one near the Umusadege field and one near the midpoint
between Umusadege and the Shell Export station. The Umugini pipeline will
connect the Umusadege field to the Shell Export pipeline. The Shell export
pipeline will deliver Umusadege crude to the Shell Forcados terminal.
Negotiations regarding the crude handling agreement with the export pipeline and
terminal operators are nearing completion.


Wade Cherwayko, Chairman & CEO of Mart Resources stated: "Mart and its partners
are very pleased with the initial clean up and flow test results from the first
three zones of the UMU-10 well. We look forward to receiving results from the
remaining flow tests, and are making preparations to begin drilling UMU-11."


Additional information regarding Mart is available on the Company's website at
www.martresources.com and under the Company's profile on SEDAR at www.sedar.com.


INVESTOR RELATIONS:

Investors are also welcome to contact the following investor relations
specialists for all corporate updates and investor inquiries:


FronTier Consulting Ltd.

Mart toll free # 1-888-875-7485

Email: inquiries@martresources.com

Except where expressly stated otherwise, all production figures set out in this
press release, including bopd, 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%
(before capital cost recovery) and 50% (after capital cost recovery).


Forward Looking Statements and Risks

Certain statements contained in this press release constitute "forward-looking
statements" as such term is used in applicable Canadian and US securities laws.
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". 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. Such forward looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the Company
to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. 


In particular, there is no assurance that the Company will be able to
commercially produce, transport or sell oil from the UMU-10 well (or any one or
more of the sands identified by the UMU-10 well) or successfully test the XXb or
XIX sands. Statements (express or implied) regarding the ability of the Company
to successfully complete, test and commercially produce, transport and sell oil
from the UMU-10 well (or any one or more of the hydrocarbon sands identified by
the UMU-10 well), should all be viewed as forward-looking statements. The well
log interpretations indicating hydrocarbon-bearing sands are not necessarily
indicative of future production. There is no assurance that reserves will be
assigned to such hydrocarbon bearing sands. In addition, there is no assurance
that there will not be future disruptions of the AGIP pipeline or that future
repairs will not be required. Any future disruptions will materially and
adversely affect the ability of the Company to transport, deliver and sell its
crude oil production from the Umusadege field. Statements (express or implied)
concerning the allocation of export and pipeline capacity to the Umusadege field
from their party pipeline owners, should also be viewed as forward looking
statements. 


There is no assurance that Mart and its Co-venturers will be able to secure a
second drilling rig or that drilling activities will occur within the timeframes
indicated. There is no assurance that any future wells will be successfully
drilled or if drilled, will be capable of commercial production.


There is no assurance that construction and completion of the Umugini Pipeline
referenced herein will be completed within the timeframes indicated or at all or
that Mart and its Co-venturers will be able to enter into an acceptable crude
oil handling agreement. There is no assurance that the production capacity of
the Umugini Pipeline will be adequate for future levels of Umusadege field oil
production. Any new export pipeline will face risks generally associated with
pipeline operations in Nigeria including the risk of pipeline disruption and
line losses. There can be no assurance that such forward-looking 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 no place undue reliance on forward-looking statements contained in this
news release. The forward-looking statements contained herein are expressly
qualified by this cautionary statement.


Forward-looking statements are made based on management's beliefs, estimates and
opinions on the date the statements are made and the Company 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Mart Resources, Inc. - London, England office
Wade Cherwayko / Dmitri Tsvetkov
+44 207 351 7937
Wade@martresources.com / dmitri.tsvetkov@martresources.com


Mart Resources, Inc.
Investor Relations
Toll Free 1-888-875-7485
www.martresources.com

Meritus Minerals Ltd (TSXV:MER)
Historical Stock Chart
From Oct 2024 to Nov 2024

Meritus Minerals Ltd (TSXV:MER)
Historical Stock Chart
From Nov 2023 to Nov 2024