Mart Announces Financial and Operating Results for the Three Months Ended March 31, 2015
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 05/15/15 -- Mart Resources, Inc. (TSX: MMT) ("Mart" or the "Company") is pleased to announce its financial and operating results (all amounts in United States dollars unless noted) for the three months ended March 31, 2015, including the Company''s outlook and operations update:
THREE MONTHS ENDED MARCH 31, 2015
FINANCIAL AND OPERATING RESULTS
The following table provides a summary of Mart''s selected financial and operating results for the three month periods ended March 31, 2015 and 2014 and the twelve month period ended December 31, 2014:
Notes:
OUTLOOK AND OPERATIONS UPDATE
Financing
In April 2015, Mart, through its wholly-owned subsidiary, MURNL entered into a revised facility agreement with GTB that provides for a 12-month deferral of principal loan repayments effective March 4, 2015.
The total outstanding borrowing as at March 4, 2015 was approximately $200.5 million and is comprised of:
Interest is based on 90 day LIBOR, plus 4 percent (floor of 8.25 percent) and is payable quarterly. The facility is secured by all assets of MURNL. Concurrent with entering into the revised facility agreement, MURNL''s Umusadege co-venturers also entered into separate facility agreements with GTB that provide for a 12 month deferral of their respective principal loan repayments to GTB.
During the moratorium period, MURNL and its co-venturers are required to deposit into a designated account held by GTB (the "capex account"), the proceeds of Umusadege field crude oil sales equal to a minimum of the deferred quarterly principal loan repayment amount. These funds will be used to fund the 2015 Umusadege field capital expenditure program directly from the capex account. Under this arrangement, Mart''s obligation to fund the 2015 Umusadege field capital expenditure program has been reduced to approximately 50% and there will be no recovery of Mart''s capital expenditures incurred and not recovered before the start and during the period of moratorium. MURNL may not pay dividends during the moratorium period.
Upon the expiry of the moratorium period, Mart and its co-venturers are required to deposit proceeds from the sale of crude oil above US$70/bbl (after deduction of funds required for capital expenditures, operating expenditures and statutory obligations), into a designated account held by GTB, which may be used by GTB, to prepay the outstanding loan obligations. In addition, GTB may, at its discretion, apply 50% of the residual cash flows from sale of crude oil to prepay the outstanding facility, after deduction of funds required for all statutory obligations, financial obligations to the bank, as well as all obligations under the approved 2015 Umusadege work program.
Umusadege drilling update
Operations have commenced on the UMU-8 well site to side-track and deepen the existing UMU-8 well. The UMU-8 drilling program is intended to appraise intervals below the XV sand, specifically horizons XVIII through XXI, which have not yet been penetrated in the central prospect. The target depth is approximately 8500 feet.
The Umusadege Joint Venture has budgeted to spend approximately $113 million during 2015 for the planned drilling program and miscellaneous Umusadege field capital expenditures. However, the work program and capital expenditure budget are expected to be revised and may be reduced during 2015.
Trucking of crude oil from UMU-13
Trucking of crude oil from the UMU-13 well to the Central Processing Facility has commenced and will continue until a permanent flowline is constructed to tie the UMU-13 well into the facility. An average of about 1,400 bopd is currently being trucked from UMU-13, and the target volume is approximately 3,000 bopd.
Umugini pipeline capital expenditure
Following the completion of the Umugini pipeline construction in Q4 2014, capital expenditures for 2015 are expected to be minimal, mainly relating to completion of remaining civics works, pumps and LACT units. Mart expects to spend $2.0 million on capital expenditures for 2015 for the Umugini pipeline.
Definitive Arrangement Agreement with Midwestern
In March 2015, Mart entered into a definitive arrangement agreement with Midwestern, the operator of and one of Mart''s co-venturers in the Umusadege field in Nigeria. Pursuant to the Arrangement Agreement, a wholly-owned subsidiary of Midwestern will acquire all of the issued and outstanding common shares of Mart by way of a plan of arrangement under the Business Corporations Act (Alberta), including the assumption of all outstanding bank debt of Mart (currently, approximately US$200 million), and each Mart shareholder will receive CDN$0.80 in exchange for each Mart common share held. The completion of the Arrangement is subject to numerous customary closing conditions including the Financing Condition. If the Arrangement Agreement is terminated by either party as a result of the Financing Condition not having been satisfied, Mart is entitled to a reverse break fee of CDN$5.8 million from Midwestern. The Financing Condition has to be satisfied by June 15, 2015.
Additional information regarding Mart is available on the Company''s website at and under the Company''s profile on SEDAR at .
Notes: Except where expressly stated otherwise, all production figures set out in this press release, including bopd, reflect gross Umusadege field production rather than production attributable to Mart. Mart''s share of total gross production before taxes and royalties from the Umusadege field fluctuates between 82.5% (before capital cost recovery) and 50% (after capital cost recovery).
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 and 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, statements (express or implied) contained herein or in Mart''s Management''s Discussion and Analysis ("MD&A") regarding the following should be considered forward-looking statements: the Company''s goals and growth strategy, estimates of reserves and future net revenues, exploration and development activities in respect of the Umusadege field, the Company''s ability to finance its drilling and development plans with cash flows from operations, the ability of the Company to successfully drill and complete future wells, the ability of the Company to commercially produce, transport and sell oil from the Umusadege field, future anticipated production rates, export pipeline capacity available to the Company, the extent of future production and export pipeline disruptions and pipeline losses, the expectation of the Company that production and export pipeline disruptions will not have a lasting impact on the Company''s future production, timing of completion of the Company''s upgrading of the central production facility, the construction, completion, commissioning and tie-in of the Umugini pipeline, the acceptance of the Company''s tax filings by the Nigerian taxing authorities, treatment under government regulatory regimes including royalty and tax laws, projections of market prices and costs, supply and demand for oil, timing for receipt of government approvals, and the ability of the Company to satisfy its current and future financial obligations to its banks and other creditors.
In addition, information regarding the reserve and resource 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 and resources described exist in the quantities predicted or estimated and that the reserves and resources 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 regarding reserves. In addition, past production performance, sales volumes and prices from the Umusadege field are not necessarily indicative of future performance, sales volumes and prices.
Finally, there is no assurance that the conditions set out in the Arrangement Agreement, including the Financing Condition, will be met. There is no assurance that the Arrangement will be completed on the timelines indicated or at all or that there will not be amendments to the Arrangement Agreement.
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. This cautionary statement expressly qualifies the forward-looking statements contained herein.
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.
NEITHER THE TSX NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE RELEASE.
Contacts:
Mart Resources, Inc. - London, England
Dmitri Tsvetkov
+44 207 351 7937
Mart Resources, Inc. - Canada
Sam Grier
403-270-1841
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Datum: 15.05.2015 - 07:29 Uhr
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