Mart Resources, Inc. (TSX VENTURE:MMT) and its partners, Midwestern Oil and Gas Company PLC (Operator) and Suntrust Oil Company Nigeria Limited, are pleased to report encouraging initial test results from the first production test on the UMU-5 well located at the Umusadege field in the Niger Delta of Nigeria.
The first test on the UMU-5 well was conducted on the IX oil zone for a duration of 17 hours. During the test, the well flowed at rates up to 3,200 barrels per day of 48 API gravity oil through 2 7/8 inch tubing on a 32/64" choke at a flowing tubing pressure of 625 PSI. Water production was less than 0.2% and the gas/oil ratio was approximately 80 standard cubic feet per barrel. Mart and its partners are currently undertaking an additional production test in the VII oil zone, located uphole of the IX oil zone.
In addition to the current production test in the IX zone, the UMU-5 well confirmed oil in six other zones based upon wireline fluid samples. These samples bring the total number of oil zones in the Umusadege field confirmed by fluid samples to thirteen. Logs from the UMU-5 well indicate a total net oil pay of 175 feet, including 27 feet in the IX zone and 47 feet in the VII zone.
The UMU-5 well was drilled as a "twin well" to the currently producing UMU-1 well in order to enable production from additional oil zones. Production from the UMU-1 well, which was drilled by Elf in 1974, commenced on April 21, 2008 and the well is currently producing approximately 2,000 barrels of 42 API oil per day from the XIIb zone. This zone has 20 feet of net oil pay and has produced more than 490,000 barrels of oil to date.
All interconnecting pipelines to tie the UMU-5 well into the Umusadege field production and export facilities have been completed and the partners plan to commence commercial production from the UMU-5 well immediately following analysis of the crude oil samples and receipt of all requisite approvals, which are currently anticipated by the end of March 2009.
Certain statements in this News Release constitute forward-looking statements under applicable securities legislation. Such forward-looking statements involve 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. Forward-looking statements in this new release include but are not limited to references, whether actual or implied, to future production levels from the Umu-5 well and the ability of the Company to commercially produce the well. By its very nature, such forward-looking information requires the Company to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information. In particular, there is no assurance that UMU-5 well will be commercially producible or that the future production levels therefrom will be at the tested production rates. If commercial production is achieved, there is no assurance it will be achieved within the express or implied timeframes set forth herein. All references to production levels contained in this press release are to total field production rates at the wellhead and are before the deduction of interests to third parties.
Furthermore, the forward-looking information contained in this news release is made as of the date of this news release and, except as required by applicable law, Mart Resources, Inc. does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.
SOURCE: Mart Resources, Inc.