Mart Resources Incorporated said it had resumed production from its Umusadege field in Nigeria following the completion of pipeline maintenance and repairs.
The Canada-based company and its co-venturers Midwestern Oil and Gas Company plc, operator of the field, and SunTrust Oil Company, last week, in a statement, advised investors that production from the multiple-horizon hydrocarbon reservoir field resumed last Wednesday following notice from the pipeline operator of the completion of maintenance and repairs to the export pipeline.
Production and deliveries into the export pipeline from the field are expected to ramp up to normal levels over the next several days, it noted.
The field started oil production in 2008 and field production increased to approximately 10,525 barrels per day in May 2011. The shutdown of the pipeline, however, which began in late February, meant field production and deliveries into the export pipeline ceased for the whole of March.
Read also: Mart Resources’ Umusadege field output in June hurt by disruptions
The Umusadege oil field, an onshore oil and gas field located in the North Central area of the Niger Delta basin, contains 13 known reservoirs and substantial hydrocarbon reserves potential, according to data derived from 3-D seismic surveys and evaluations based on existing wells.
The field was awarded to Midwestern and SunTrust at a ratio of 70:30; both companies subsequently entered into agreements with Mart under which the company provides technical and financial services.
Mart, one of the first foreign companies to establish partnerships with local Nigerian oil companies under the indigenous and marginal field programs, is very focused on assets in the prolific Niger Delta.
The news of the pipeline’s repair and consequent revival of production on the Umusadege field was said to have come on the heels of Mart’s recently arranged $100 million secured term loan facility with Guaranty Trust Bank plc, intended to finance capital expenditures related to further field development activities as well as the company’s ongoing requirements for working capital.
