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Mart Resources Inc mmt.v C$.17
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Bobwins



Joined: 05 Feb 2007
Posts: 1227
Location: Seattle, Wa

PostPosted: Tue Nov 09, 2010 8:14 pm    Post subject: Drilling update powers MMT.v +.10 to C$.65 Reply with quote

While no production tests have been done, this is a very positive PR. Multiple zones with decent oil pays, company decision to run dual tubing string so they can test and produce multiple zones. The company's existing UMU wells started out around 3,000bpd but these new wells are drilling to produce from different sands. Could be higher in production but still need tests and production numbers. First well should be tested by end of November and next well drilling started before year end.




Press Release Source: Mart Resources, Inc. On Tuesday November 9, 2010, 8:55 am EST
CALGARY, ALBERTA--(Marketwire - Nov. 9, 2010) - Mart Resources, Inc. (TSX VENTURE:MMT - News; "Mart" or the "Company") and its co-venturers, Midwestern Oil and Gas Company Plc. (operator of the Umusadege field) and Suntrust Oil Ltd are pleased to provide an operations update on the UMU-6 well located in the Umusadege field.

The UMU-6 well reached a final total drilling depth of 8,750 feet on November 6, 2010. Open hole wire line logs have been run with preliminary results indicating a total of 18 hydrocarbon-bearing sands. The logs also indicate a cumulative gross pay of approximately 420 feet in the UMU-6 well from all sands.

All of the UMU-6 well's primary objectives, including the XIII, XIV, XV and XVI sands were hydrocarbon bearing with preliminary results indicating gross oil pay of 40 feet, 24 feet, 6 feet and 18 feet from these sands respectively. A deeper XVII sand was also encountered with initial results indicating 8 feet of gross oil pay. The XIII, XIV, XV, XVI and XVII sands were not assigned reserves in the Company's most recent NI 51-101 reserve report.

The UMU-6 well also encountered hydrocarbons in the XI and XIIc sands with preliminary results indicating gross oil pay of 14 feet and 18 feet respectively. The previous Umusadege wells did not contain material hydrocarbons in these sands.

Pressure data and fluid samples are currently being obtained which will be followed by the running of 9 5/8 inch production casing. It is expected that the UMU-6 well will be completed as a dual tubing string configuration allowing for multiple zone testing and future production from multi zones.

The current UMU-6 site includes a three well drilling pad which will facilitate two more wells being drilled from this location. It is anticipated that the next well, UMU-7, will commence drilling operations after the completion and production testing of the UMU-6 well.

ABOUT MART RESOURCES:

Mart Resources Inc. is an independent, international petroleum company focused on drilling, developing and producing oil and gas from low-risk proven petroleum properties in Nigeria, West Africa. The Company is currently producing and developing the Umusadege field along with Midwestern Oil and Gas Co. Plc (the Operator of the field) and SunTrust Oil Ltd. Mart also owns two land drilling rigs, has strong local relationships and experience and is evaluating additional proven undeveloped opportunities in Nigeria
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Bobwins



Joined: 05 Feb 2007
Posts: 1227
Location: Seattle, Wa

PostPosted: Fri Nov 05, 2010 2:43 pm    Post subject: Big drop Reply with quote

stock got up to .57 but had some panic selling that drove it down to .44. Huge volume of 5.5million shares. No news from company. Well still drilling but must be getting close to Total depth. Trying to buy some more shares but have been too low so far.

Company is producing around 1900net bpd. If 1/3 of the development wells hits, they could easily double production. If 3/3 hit, it's off to the races.

This is still cheap. Bobwins
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Bobwins



Joined: 05 Feb 2007
Posts: 1227
Location: Seattle, Wa

PostPosted: Tue Oct 26, 2010 4:01 pm    Post subject: Mart continues strong C$.45 Reply with quote

Mart still drilling their first development well. Close to total depth but it will be late November before we find out success and any production numbers.

Two more wells to be drilled from same drilling platform. This could have a big impact on production, hopefully sending it over 10,000bpd. Mart gets 100% of revs until capex is paid back and then WI% drops to 50%. If they hit 10,000bpd, it won't take long to get to payback!

Still undervalued. Had a recent runup because Warren Veronbac at Union Securities put what I consider a very conservative price target of .75 on it from his previous target of .40. He is forecasting cashflow of .34 in 2011 so just 2.2X cashflow.

This is my biggest energy position and I expect it to get much bigger over the next few months. Bobwins
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Bobwins



Joined: 05 Feb 2007
Posts: 1227
Location: Seattle, Wa

PostPosted: Fri Jul 02, 2010 11:46 am    Post subject: Mart moving up again Reply with quote

Last time it peaked around C$.33 but fell back to under .20.

Annual meeting and improved presentation must have woken somebody up to the value here. Spud on development well in a couple of weeks. They are already profitable and cheap based on the two wells they are producing. They are about to drill three more wells before yearend that should at least double production and cashflow. Should be selling for over a buck but are carrying the Nigerian anchor around their neck.
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Bobwins



Joined: 05 Feb 2007
Posts: 1227
Location: Seattle, Wa

PostPosted: Wed Jun 30, 2010 9:45 pm    Post subject: latest presentation Reply with quote

http://www.martresources.com/w.....629102.ppt


Drill pad is built but company must wait for concrete to cure. Spud around 7/15/10.
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Bobwins



Joined: 05 Feb 2007
Posts: 1227
Location: Seattle, Wa

PostPosted: Fri Jun 11, 2010 9:46 am    Post subject: Drilling delayed Reply with quote

Mart held a conference yesterday to update investors on their progress.

Conference was technically flawed with lousy phone connections and poor acoustics. Slideshow was supposed to be up on website but website was down and has been for several days for updating!

The news was that the drilling for three development wells has been delayed by swampy conditions at the drill site that has required excavacation and concrete work to provide a stable foundation for the drill rig. This platform will be used to drill all three wells so it's time consuming but should minimize delays down the road.

Won't spud for several weeks. I am guessing test results in late August and earliest production in September.

Company has recovered their costs on first two wells so WI is 50%. However they get 100% during cost recovery so drill expenses can be recovered quickly from their current oil production. From now until the end of the year, they will bounce in and out of cost recovery, depending on the level of expenses and oil production.

In addition to drilling new development wells from the platform, the two existing producers will be reworked to open up multiple zones to stabilize production.

Overall the company would like to be at net 7000-8000bpd by year end. This would be a big increase in net cashflow and make MMT.v even cheaper. They still have to perform and delays appear to be part of their operating mode but cashflow cures a lot of ills. Still need to payoff bad debt financing.

Will post presentation as soon as they get it up on the website.
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Bobwins



Joined: 05 Feb 2007
Posts: 1227
Location: Seattle, Wa

PostPosted: Mon Apr 12, 2010 11:47 am    Post subject: Mart is moving +.045 to C$.27 Reply with quote

Nice move on 723K volume. Way undervalued because of Nigerian location but good 4,000bpd production and development drilling of 2 more wells this year in Q2 and 3.
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Bobwins



Joined: 05 Feb 2007
Posts: 1227
Location: Seattle, Wa

PostPosted: Mon Mar 29, 2010 5:05 pm    Post subject: No surprises Reply with quote

Another wart with Mart that I didn't mention in my first post. They have an unusual agreement. They pay 100% of drilling costs to get 50% WI BUT they get 100% until they recover drill costs. So currently they are reporting 100% of 4,000bpd production. In a few months, they will drop to 50% WI on the first wells drilled.

So it's important that they start drilling again asap so that new production can come online at 100% WI to replace production from the older wells that will both deplete AND drop to 50% WI.

So it's a moving target but they need to get drilling!
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Bobwins



Joined: 05 Feb 2007
Posts: 1227
Location: Seattle, Wa

PostPosted: Mon Mar 29, 2010 2:32 pm    Post subject: bought more MMT.v at .21 Reply with quote

Mart is getting noticed. Huge volume of 4 million shares traded.

+.02 to C$.21

They are drilling development wells in Q2 and Q3(1 each qtr) pending financing. They should have cash to do it but haven't confirmed yet. So cheap, it should have quite a bit more upside going forward, especially if they hit the first well.
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D_Roberts



Joined: 04 Jan 2006
Posts: 114
Location: UK

PostPosted: Tue Mar 09, 2010 8:58 am    Post subject: Reply with quote

Looks very interesting. have had a quick look and they are definitely worth a punt as they are reducing debt aggressively and the change in corporate strategy seems to be working.

Thanks for the heads up Smile

DR
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Bobwins



Joined: 05 Feb 2007
Posts: 1227
Location: Seattle, Wa

PostPosted: Fri Mar 05, 2010 4:00 pm    Post subject: Mart Resources Inc mmt.v C$.17 Reply with quote

I bought Mart today because it is very undervalued based on price to cashflow. Earned 7 million last qtr and had cashflow of .045 so selling for less than 1 X fwd annualized cashflow.

Why? There are warts. They operate onshore in Nigeria so there is high country risk. In addition, they have had lots of problems paying their suppliers and lenders. They are current with lenders now and working down their payables.

They have production of around 4,000bpd from two wells. The cash crunch prevented them from drilling more while they tried to stabilize their finances. They even tried to sell the company last year to a private Nigerian firm but they couldn't complete the transaction. Now the company has decided they can make it on their own. They are focused on cutting expenses and expanding their sole producing field.

http://finance.yahoo.com/news/.....0&.v=1

There is definitely high risk but the production should provide a downside protection and the company is planning to resume drilling now that things are looking more positive.
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