Mart Resources’ Umusadege field output in June hurt by disruptions

Mart Resources, Inc. and its coventurers, Midwestern Oil and Gas Company Plc. (operator of the Umusadege field) and SunTrust Oil Company Limited said production from the field in June 2014 averaged 6,793 barrels of oil per day (bopd).

Mart is an independent international oil and gas company focused on production and development opportunities in the Niger Delta.

Aggregate Umusadege field downtime during June 2014 was approximately 11.3 days due to a shutdown of the Nigerian Agip Oil Company Limited (NAOC) export pipeline resulting from a lack of storage capacity at the Brass River export terminal due to export shipment delays, and other operational interruptions resulting from general pipeline repairs and maintenance, Mart Resources said in an update on Umusadege field production for June 2014 and other operations, published on its website last Wednesday.

There were two full down days during the month. The average field production based on producing days was 10,871 bopd in June 2014.

Total net crude oil deliveries into the NAOC export pipeline from the Umusadege field for the month were about 203,786 barrels before pipeline losses. Based upon the 12-month rolling average rate of pipeline and export facility losses from June 2013 to May 2014 of 22.75 percent, Mart estimates pipeline and export facility losses for June 2014 will be about 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.

Pipeline and export facility losses reported by NAOC and allocated to Mart and its co-venturers for May 2014 were 73,237 barrels, or 22.7 barrels of total crude oil deliveries into the export pipeline for that month. Pipeline and export facility losses allocated to Mart and its co-venturers from January to May 2014 have averaged 16.6 percent of total crude oil deliveries into the export pipeline for 2014.

As previously announced, total net crude oil deliveries into the export pipeline from theUmusadege field for May 2014 were approximately 322,086 barrels. Accordingly, after deducting the actual pipeline and export facility losses allocated for May 2014, the total net crude oil deliveries less losses for May 2014 were 248,849 barrels. Mart previously estimated pipeline and export facility losses for May 2014 to be approximately 73,971 barrels, based upon the 12-month rolling average rate of pipeline and export facility losses of 22.97 percent between May 2013 and April 2014. June 2014 pipeline and export facility losses have not yet been reported by NAOC.

The Umugini pipeline construction and tie-in are nearing completion, Mart said, adding that planning for the commissioning, start-up and operation of the pipeline including finalisation 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, it said.

FEMI ASU