Mart Resources, Inc. (“Mart” or the “Company”) and its coventurers, Midwestern Oil and Gas Company Limited (“Midwestern”, Operator of the Umusadege field) and SunTrust Oil Company Limited are providing the following updates on Umusadege field production for November 2015 and other operations.
November 2015 Aggregate Production Update
Umusadege field production during November 2015 averaged approximately 19,715 bopd resulting in total production of approximately 591,450 bbls for the month. Aggregate calculated Umusadege field downtime during November 2015 was approximately 2.5 days (based upon days with production of more than 10,000 bopd being considered to have no downtime). There were shutdowns of the Trans Forcados pipeline and the NAOC export pipeline during November 2015 due to operational interruptions for general pipeline and facility maintenance, but ongoing production from the Umusadege field was managed by the ability of the field operator to alternate production between the Trans Forcados and NAOC export pipelines. There were no full down days during the month. The average field production based on producing days was approximately 21,490 bopd in November 2015.
The combined net delivery of oil from the Umusadege field through the Umugini pipeline and NAOC export pipeline totaled approximately 596,810 bbls in November 2015 before estimated pipeline and export facility losses, and approximately 523,880 bbls after deduction of combined pipeline and export facility losses estimated for November 2015 by Mart.
NAOC Export Pipeline Update
Total net crude oil deliveries into the NAOC export pipeline from the Umusadege field for November 2015 were approximately 177,640 bbls before pipeline losses. Based upon the 12- month rolling average rate of pipeline and export facility losses from December 2013 to November 2014 of 17.46%, Mart estimates NAOC export pipeline and Brass River export facility losses for November 2015 will be approximately 31,010 bbls. Accordingly, Mart estimates that the total net crude deliveries into the NAOC export pipeline from the Umusadege field for November 2015 less estimated pipeline losses will be approximately 146,630 bbls.
As previously announced, total net crude oil deliveries into the NAOC export pipeline from the Umusadege field for October 2015 were approximately 109,590 bbls. Actual NAOC pipeline and export facility losses have not been allocated for September 2015 because allocation was suspended beginning in December 2014 by the Department of Petroleum Resources pending an approved loss computation formula. Mart previously estimated pipeline and export facility losses for October 2015 to be approximately 19,130 bbls, based upon the 12-month rolling average rate of pipeline and export facility losses of 17.46% between December 2013 and November 2014.
Trans Forcados and Umugini Pipeline Update
Based upon Mart’s internal production and facility data, the Company estimates that Umusadege field deliveries into the Trans Forcados export pipeline connected to the Forcados oil export terminal were approximately 419,170 bbls in November 2015. Based upon historic pipeline losses encountered by other exploration and production companies utilizing the Trans Forcados export system, Mart estimates pipeline and export facility losses of 10% of crude oil deliveries, resulting in estimated Umusadege field deliveries of approximately 41,920 bbls for November 2015 after deduction of estimated pipeline and export facility losses.
The Umugini pipeline was down for three days in November 2015 due maintenance and repair work done on the pipeline.
Further to its previous disclosures regarding the absence of accurate and reconcilable injection data from Shell Petroleum Development Company of Nigeria Limited (“SPDC”), the operator of the Trans Forcados oil export terminal system, Mart advises that the Company and its co-venturers have received unreconciled reports that include only preliminary gross oil injection volumes and estimated pipeline and export facility losses. From our initial review, it is not clear whether the reported volumes represent all producers on the system or only Mart and its co-venturers. Mart and its co-venturers have requested additional and more complete information from SPDC in order to accurately reconcile volumes and any attributed pipeline losses. However, based upon preliminary analysis of the volume and loss information provided, Mart has calculated that the average loss rate could range between 10% and 21% of gross oil injections. The Company cautions that it is currently not able to obtain confirmation of these values, and it is not able to perform a reliable reconciliation. Until more accurate and complete information and reports can be obtained from SPDC, Mart will continue to estimate such pipeline losses at a rate of 10% based upon historic pipeline losses encountered by other exploration and production companies utilizing the Trans Forcados export system.
Drilling and Testing Update
The UMU-16 well was spudded on December 6, 2015. The well is being drilled to appraise the West Prospect potential. The West Prospect is interpreted to be a separate structure from the existing Umusadege field, and therefore can be considered a well to appraise the West Prospect in terms of risk profile. The well is currently at a depth of 9,600 feet, and the operator is currently planning to drill to a total depth of 10,500 feet. If the well to appraise the West Prospect is successful, it will be flow tested and tied back to the main field for commercial production. No other well has been drilled in the West Prospect to date.
The UMU-15 well has been completed with dual string completion. The well will be tied in to a manifold at the UMU-13 location, then undergo clean up and initial flow testing. The initial flow test results will be included in subsequent monthly updates once available
No comments:
Post a Comment