Production Commences from UMU-5 Well Onshore Nigeria

Mart Resources and its partners, Midwestern Oil & Gas Company PLC (Operator) and Suntrust Oil Company Nigeria Limited are pleased to announce the commencement of production from the UMU-5 well in the Umusadege field, onshore Nigeria.

Oil production has commenced at the Umu-5 well from the IX zone pursuant to an authorized phased production test. The well is flowing at an initial rate of 1,590 barrels of oil per day on a 20/64 choke. The well will be flowed through progressively increasing choke sizes as part of the test program in order to establish the maximum efficient rate for the well. As previously announced, the IX zone previously flowed at a rate of 3,200 barrels of oil per day on a 32/64 inch choke during the initial test.

As a result of bringing the UMU-5 well on stream, total production from the Umusadege field, including the UMU-1 well, is currently 3,500 barrels of oil per day.

The UMU-5 well was drilled to a total depth of 7,770 feet and encountered eight (8) oil-bearing sandstone reservoir zones between depths of 6,680 feet and 7,710 feet, with a combined net pay thickness of approximately 175 feet. The well has been completed for production from two zones using a single-string dual completion and tied back to the Umusadege production facilities located approximately 500 feet away.

Mart and its partners are also pleased to announce completion of the first phase of the program to reduce ongoing operating costs at the Umusadege field. Produced water from the field is now being treated and disposed of on-site rather than being trucked to an off-site treatment facility. In addition, the partners have acquired a dedicated oil-water-gas separator system that is now in the field and tie-in of this new facility is underway. This system is anticipated to replace the current rented system by the end of April and is expected to lead to a further reduction in operating costs.


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