Mart Annnounces a 16% Increase in 2011 Year End Proved Reserves
08 Mayo 2012 - 7:30AM
Marketwired Canada
Mart Resources, Inc. (TSX VENTURE:MMT) ("Mart" or the "Company") is pleased to
announce the results of independent reserve evaluations of the Company's
reserves effective December 31, 2011 and the filing on SEDAR of its Statement of
Reserves Data and Other Oil and Gas Information as prescribed by National
Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.
2011 Highlights:
December 31, 2011 Reserve Highlights of Mart's Interest:
-- Mart's total gross proved ("1P") oil reserves in the Umusadege field
increased 16% to approximately 11.2 million barrels of oil ("bbls")
compared to 9.6 million bbls at December 31, 2010;
-- Mart's total gross proved plus probable ("2P") oil reserves in the
Umusadege field increased 15% to approximately 14.9 million bbls
compared to 12.9 million bbls at December 31, 2010;
-- Mart's total gross proved plus probable plus possible ("3P") oil
reserves in the Umusadege field increased 9% to approximately 22.0
million bbls compared to 20.1 million at December 31, 2010;
-- Mart's net present value before tax of future net revenue, discounted at
10%, from the 2P Umusadege field reserves as at December 31, 2011 was
US$782.4 million (compared to US$536 million as at December 31, 2010).
The 1P, 2P and 3P reserves figures and net present value of future net revenue
contained in the 2011 Highlights provided above, have been calculated in
compliance with Canadian National Instrument 51-101 - Standards of Disclosure
for Oil and Gas Activities ("NI 51- 101") and the Canadian Oil and Gas
Evaluation Handbook ("COGEH") and have been derived from the data contained in
the Company's Form NI 51-101F1 - Statement of Reserves Data and Other Oil and
Gas Information dated April 30, 2012 (effective December 31, 2011) filed on
SEDAR (www.sedar.com) and on Mart's website, www.martresources.com.
The December 31, 2011 year-end reserves evaluation report for the Umusadege
field was prepared by RPS Energy (the "2011 RPS Report") and includes an
evaluation of the vertical section of the UMU-9 well discoveries down to the XIV
sand only, as drilling and evaluation of the deviated section was still ongoing
as at December 31, 2011. The full well test data, lab results and analyses of
the deviated section of the well are now available, and Mart has retained RPS
Energy to prepare an update to the 2011 RPS Report that will include an
evaluation of the deeper sand discoveries.
Wade Cherwayko, Chairman and CEO of Mart Resources, Inc., said "We are very
pleased with the increases to Mart's reserves and continued strong production in
2011 which was obtained through successful development and appraisal of new
reserves and successful management of existing reserves. In 2012, Mart and our
co-venturers are focused on continuing to grow reserves and production through
development and appraisal drilling and reservoir management in the Umusadege
field."
The following table summarizes Mart's 2011 year-end gross and net after royalty
reserves. Also shown in the following table, for comparative purposes, are
Mart's net after royalty reserves for year-end 2010.
Summary of Oil and Gas Reserves Using Forecast Prices and Costs
Mart Net
Mart Gross Reserves(1)(3) Reserves(1)(3)
12/31/11 12/31/11
Light and Medium Oil (mbbl) (mbbl)
----------------------------------------------------------------------------
Reserves Category(4) Umusadege Qua Ibo(5) Umusadege Qua Ibo(5)
--------------------------------------------------------
Proved
Developed 2,680 - 2,572 -
Producing
Developed Non- - - - -
Producing
- -
Undeveloped 8,480 7,898
Total Proved 11,160 - 10,470 -
Total Probable 3,736 9,754 3,395 8,960
Total Proved plus
Probable 14,896 9,754 13,865 8,960
Total Possible (6) 7,075 19,908 6,300 18,590
Total Proved plus
Probable plus
Possible (6) 21,971 29,662 20,165 27,550
Mart Gross Reserves(2)(3)
12/31/10
Light and Medium Oil (mbbl)
------------------------------------------------
Reserves Category(4) Umusadege Qua Ibo(5)
----------------------------
Proved
Developed 2,105 -
Producing
Developed Non- - -
Producing
-
Undeveloped 7,527
Total Proved 9,632 -
Total Probable 3,315 9,745
Total Proved plus
Probable 12,947 9,745
Total Possible (6) 7,188 19,951
Total Proved plus
Probable plus
Possible (6) 20,135 29,696
The net present values of Mart's reserves as at December 31, 2011 before and
after tax, discounted at 10% are as follows:
Before Tax - Net Bbls
NPV at 10% discount per bbl:
Before tax (in US$ millions) Umusadege (1) Qua Ibo(1)(5) Total
---------------------------------------------
Total Proved $ 584.1 $ 0.0 $ 584.1
Total Probable $ 198.4 $ 266.7 $ 465.1
---------------------------------------------
Total Proved plus Probable $ 782.4 $ 266.7 $ 1,049.1
---------------------------------------------
After Tax - Net Bbls
NPV at 10% discount per bbl:
After tax (in US$ millions) Umusadege (1) Qua Ibo (1)(5) Total
---------------------------------------------
Total Proved $ 445.8 $ 0.0 $ 445.8
Total Probable $ 129.1 $ 105.7 $ 234.8
---------------------------------------------
Total Proved plus Probable $ 574.9 $ 105.7 $ 680.6
---------------------------------------------
Notes:
1. The information contained herein for the Umusadege field has been
derived from a reserve report dated April 10, 2012 (effective as of
December 31, 2011) prepared by RPS Energy Canada Inc. ("RPS"). The
information contained herein for the Qua Ibo field has been derived from
a reserve report dated April 9, 2012 (effective December 31, 2011)
prepared by Chapman Petroleum Engineering Ltd. ("Chapman").
2. The information contained herein for the Umusadege field has been
derived from a reserve report dated April 19, 2011 (effective as of
December 31, 2010) prepared by RPS. The information contained herein for
the Qua Ibo field has been derived from a reserve report dated April 4,
2011 (effective December 31, 2009) prepared by Chapman.
3. Gross Reserves means Mart's working interest share of total field
reserves after deducting reserves volumes owned by others but before
deducting reserves attributable to government and third party royalties
and income taxes or their equivalent. Net Reserves means Mart's working
interest share of total field reserves after deducting reserves volumes
owned by others and after deducting reserves attributable to government
and third party royalties but before income taxes or their equivalent.
4. All reserves definitions utilized herein are as set out in the Canadian
Oil and Gas Evaluation Handbook ("COGEH").
5. As at December 31, 2010, Mart continued to hold a participation interest
in the Qua Ibo field. Subsequent to December 31, 2011, the Company
entered into an agreement pursuant to which Mart and Network Exploration
& Production Nigeria Limited have amicably terminated Mart's
participating interest in the Qua Ibo field. Under the terms of the
agreement, Network has assumed responsibility for outstanding
liabilities of approximately US$3.2 million for the Qua Ibo field and
has paid Mart a US$1.0 million termination fee.
6. Possible reserves are those additional reserves that are less certain to
be recovered than probable reserves. There is a 10% probability that the
quantities actually recovered will equal or exceed the sum of proved
plus probable plus possible reserves.
7. The estimates of reserves and future net revenue for individual
properties may not reflect the same confidence level as estimates of
reserves and future net revenue for all properties, due to the effects
of aggregation.
8. Due to rounding, certain columns may not add exactly.
Grant of Stock Options
Mart also announces that it has granted an aggregate of 6,590,000 options, of
which 4,350,000 options were granted to directors or officers of Mart. Each
option represents the right to purchase one common share of Mart at an exercise
price of $1.04 per share for a period of five years.
ABOUT MART RESOURCES:
Mart Resources, Inc. is an independent, international petroleum company focused
on drilling, developing and producing oil and gas from proven petroleum
properties in Nigeria, West Africa. The Company is currently producing and
developing the Umusadege field along with Midwestern Oil and Gas Co. Plc (the
Operator of the field) and SunTrust Oil Ltd. Mart also owns a land drilling rig,
has strong local relationships and experience and is evaluating additional
proven undeveloped opportunities in Nigeria.
INVESTOR RELATIONS:
Investors are also welcome to contact one of the following investor relations
specialists for all corporate updates and investor inquiries:
FronTier Consulting Ltd.
Mart toll free # 1-888-875-7485
Attn: Sam Grier or Caleb Gilani
Email: inquiries@martresources.com
Information Regarding Reserves and Net Present Value of Future Net Revenues
All information contained in this press release regarding reserves and the net
present value of future net revenue has been derived from the Company's Form
51-101 F1-Statement of Reserves Data and Other Oil and Gas Information for the
year ended December 31, 2011 ("Statement of Reserves Data") which report, along
with the Form 51-101F2-Report on Reserves Data and Form 51-101F3-Report of
Management and Directors on Reserves Data and Other Information are available
for review at www.sedar.com and on the Company's website at
www.martresources.com.
Forward Looking Statements
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 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, information regarding the reserve estimates attributable to
Mart's oil and gas properties should be considered forward looking statements,
as they involve the implied assessment, based on certain estimates and
assumptions, that the reserves described exist in the quantities predicted or
estimated and that the reserves can be profitably produced in the future.
Readers are referred to the heading "Forward Looking Statements" in the
Company's Statement of Reserves Data for a more detailed discussion of risks
associated with forward looking statements. In addition, past production
performance, sales volumes and prices from Mart's Umusadege field are not
necessarily indicative of future performance, sales volumes and prices.
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 not 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.
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