www.martresources.com www.martresources.com A Nigeria Marginal Field Case Study North America Assembly The Four Seasons Hotel Houston, TX, USA Mr. Wade Cherwayko (Chairman & CEO) Oct 9th, 2012 Corporate Presentation North…
www.martresources.com MART Overview Mart is an independent international oil & gas company focused on production and development opportunities in the prolific Niger Delta region of Nigeria. Mart is publicly traded on the Toronto…
www.martresources.com 2012: First Half Highlights UMU-9 combined flow test of 11,718 bopd from five zones Increased production facilities to 35,000 bopd 75% complete Signed agreement with Shell for CSA via new export pipeline…
www.martresources.com Nigeria Overview Nigeria has the largest oil & gas reserve base in Sub-Saharan Africa with an estimated 30+ Billion bbls of oil and 180 Tcf of Gas Nigerian oil production averages 2.3 million bbls per day…
www.martresources.com Nigerias Marginal Field Program Initiated in 2001 to fuel the growth of Independent Nigerian E&P companies (over 130 fields identified for the program) What is a 24 marginal fields allocated to indigenous…
www.martresources.com Field Location & Export infrastructure Umusadege Field Shell Export Pipeline Forcados Terminal Agip Export Pipeline Brass River Terminal Corporate Presentation North America Assembly 7
www.martresources.com Umusadege Field History Development drilling to increase production to 12,000 bopd Marginal field award 1974 2008 2012 2003 2 0 03 2008-2011 2008-2 2011 Umusadeges Significant Oil Reserves…
www.martresources.com Umusadege Field Development Existing Development Future Exploration Marts Work Program Outlook Exploration in West & East Horizontal development Future Development Wells drilling…
www.martresources.com Schematic of Generic Dual-string Completion of Four Zones Umusadege field production strategy involves the use of dual string completion. Four oil bearing reservoirs can be produced per well, producing two…
www.martresources.com Umusadege Exploration Prospectivity in Umusadege Exploration Drilling Up to 33 stacked sands 4-way dip closure, potential for larger structure with fault seal (3 way dip closure) Hydrocarbon expected to…
www.martresources.com Regulatory framework and approval processes Marginal field award was in 2003, however the final development approval was received in 2006. Quite a significant delay to operations and initial production…
www.martresources.com Funding for Marginal Field development The Marginal Fields are proven hydrocarbon discoveries, however with only 1 well, old logs, and vintage seismic the data quality was not to modern standards. The fields…
www.martresources.com Exporting Oil from Nigeria Exports are done through main export pipelines operated by the major IOCs. Small and mid-sized operators are allocated a combined export volume in clusters of 3-5 operators.…
www.martresources.com Oilfield Equipment Availability Oilfield development in Nigeria has been active for decades and has been dominated by the major oil companies operating large fields. The availability of service rigs, drill…
www.martresources.com Managing Local Relationships Historically, many oil companies have mismanaged relationships with the local communities. This has lead to many difficulties in oilfield operations and the relationships upon…
www.martresources.com Earnings & Cash Flow Growth Continues 180 Growth from 1H2011 160 to 1H2012: 140 Revenue up 20% Net income up 42% 120 Cash flow from operations up 5% 100 CM 80 163 60 104 90 40 75 58…
www.martresources.com Field Production Profile 14,000 UMU-9 Future production UMU-7 UMU-8 gains will be 12,000 realized by : Increased pipeline 10,000 capacity UMU-6 Development drilling 8,000 BOPD Exploration…
www.martresources.com Cash Position 100 90 Cash position to fund: 80 Ongoing field development 70 Dividend policy (quarterly dividends of 0.05) 60 36M dividend paid CM in August 2012 50 18M dividend paid 40 in…
www.martresources.com Umusadege Reserves Growth (Net, Mart Share) 35 30 Reserves growth : Ongoing field 25 appraisal 3.7 Mart Share of Umusadege Exploration wells Net Reserves (MMbbl) 20 5.1 15 Cumulative…
www.martresources.com NPV of Reserves per Share 3.50 3.00 0.79 2.50 2.66 NPV/share C 2.00 Possible 1.50 Proved+Probable Share price 1.00 Share price (current) 0.50 0.00 2009 2010 2011 2012 Q1…
www.martresources.com Supporting local content & partnerships Government initiatives Socially responsible investment to attract investment Community development Indigenous allocations programmes in the 1990s Healthcare Projects…
www.martresources.com Marts Near-Term Value Drivers Continued success in the Umusadege field exploration & development East & West Prospect drilling (2013) Reserves & Production growth by development drilling (2012 &…
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