Mart Resources

To all investors, maybe you'd like this on your radar.

This company has oil operations based in Nigeria. Although it may be situated in a politically risky zone, the company is trading at forward PE ratio of 2. Quarterly report coming up next week and may come with surprises.

-Company trading at  $350 million yet earning $15 million in after-tax income per month
-Oil sold on exchange premium to Brent Crude
-Since well UMU-9 was drilled in January and discovered 450 feet of hydrocarbon, the market cap hasn't changed. Company currently producing 10k+ bopd yet this new discovery has flow tests of 11k.
-Pipeline being built to triple current productions

This link was from early 2011 explaining about the potentials and values. http://www.gurufocus.com/news/135751/how-is-your-appetite-for-political-risk-part-two

The following link is a combination of more recent reports this year by Chen Lin. For those of you who don't know, his recommendation on Pan Orient has recently shot up 60%.
http://www.theenergyreport.com/pub/co/3448

PLEASE NOTE THAT THERE ARE DANGERS IN NIGERIA AS PIPELINE BOMBINGS ARE FREQUENT AND COMMON. INVEST WITH CAUTION.

Please do you own research, I'm just a teen trying help out after all ;)
GOOD LUCK, DYOR

GlobalInvestor

Community Talk

Re: Mart Resources

More good news for MMT today. Amazing volume. Would have though about $2 per share soon.

Re: Mart Resources

GI, if you played the June Stock Challenge with MMT, you would have won.  You're on fire!

Re: Mart Resources

MART RESOURCES, INC. June 28, 2012 MART ANNOUNCES $0.10 PER COMMON SHARE DIVIDEND Calgary, Alberta – Mart Resources, Inc. (TSX-V: MMT) (“Mart” or the “Company”) is pleased to announce the declaration of a dividend of $0.10 per common share payable on August 8, 2012 to shareholders of record at the close of business on July 23, 2012. Mart’s Board of Directors has also adopted a dividend policy reflecting its intention to pay quarterly dividends of $0.05 per common share commencing in September 2012. The payments of dividends in the future are dependent on Mart’s cash flows, capital expenditure budgets, earnings, financial condition and other factors as the Board of Directors may consider appropriate from time to time. Wade Cherwayko, CEO of Mart commented: “The declaration by Mart of its first dividend to shareholders is a very important milestone for the Company and reflects our positive view of the sustainability of cash flow from Mart’s Nigerian operations.”

Re: Mart Resources

MART ANNOUNCES UPDATED RESERVE EVALUATIONS AND INCREASES IN RESERVE VOLUMES Calgary, Alberta – Mart Resources, Inc. (TSX-V: MMT) (“Mart” or the “Company”) is pleased to announce the updated results of independent reserve evaluations of the Company’s reserves effective March 31, 2012. Highlights are as follows:  Mart’s total gross proved (“1P”) oil reserves in the Umusadege field increased 24% to approximately 13.9 million barrels of oil (“bbls”) compared to 11.2 million bbls at December 31, 2011;  Mart’s total gross proved plus probable (“2P”) oil reserves in the Umusadege field increased 29% to approximately 19.2 million bbls compared to 14.9 million bbls at December 31, 2011;  Mart’s total gross proved plus probable plus possible (“3P”) oil reserves in the Umusadege field increased 14% to approximately 25.0 million bbls compared to 22.0 million at December 31, 2011;  Mart’s net present value before tax of future net revenue, discounted at 10%, from the 2P Umusadege field reserves as at March 31, 2012 was US$927.4 million (compared to US$782.4 million as at December 31, 2011). The changes in the 1P, 2P and 3P reserves figures and net present value of future net revenue contained in the highlights provided above are mainly attributable to an extension of the Umusadege field and a new pool discovery comprised of the lower sands encountered by the UMU-9 well. These reserves have been calculated in compliance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities and the Canadian Oil and Gas Evaluation Handbook and have been derived from the data contained in the independent reserve evaluation prepared by RPS Energy Canada Ltd. (“RPS”) dated June 15, 2012 with an effective date of March 31, 2012 (the “RPS March 2012 Report”).

Re: Mart Resources

Mart Resources, Inc. (TSX VENTURE:MMT) and its co-venturers, Midwestern Oil and  Gas Company Plc. (Operator of the Umusadege field) and SunTrust Oil Company  Limited (together "the Co-venturers") are pleased to announce the signing of an  agreement to establish a second export pipeline for Umusadege field oil  production.
Mart and its Co-venturers have been evaluating options to  construct a new export pipeline to transport Umusadege field oil production.  Upon completion, a new export pipeline is expected to expand transportation  capacity and mitigate the risk of reliance upon a single export pipeline for  Umusadege oil exports. As a first step toward this objective, Mart and its  Co-venturers have entered into a Crude Oil Purchase Agreement (the "COPA") with  Shell Western Supply and Trading Company ("Shell Western") pursuant to which  Mart and its Co-venturers agree to sell and Shell Western agrees to purchase  future Umusadege oil production. Mart and its Co-venturers anticipate that  Umusadege oil will also continue to be exported under its existing Crude  Handling Agreement with Nigerian Agip Oil Company.
The obligations of the  parties under the COPA are subject to, among other things, the execution of an  acceptable Crude Oil Handling Agreement between Mart, the Co-venturers and Shell  Petroleum Development Company of Nigeria Ltd ("SPDC") and the construction and  commissioning of the proposed 54km Ogini Pipeline to connect the Umusadege field  to SPDC's export pipeline at Eriemu, Nigeria. The COPA has an initial five year  term and may be extended by mutual agreement. Under the contract, the Umusadege  crude oil is expected to be sold at a premium to Brent oil  price.
Midwestern is in the early stages of engineering and design of the  54km Ogini Pipeline, which will have a design capacity to accommodate both  existing and future expanded production levels from the Umusadege field. The  Ogini Pipeline, which is currently anticipated to take approximately one year to  construct, will be owned and operated by a pipeline operating company owned in  part by Mart and the Co-venturers. The cost of the Ogini Pipeline is expected to  be funded through a combination of equity contribution by the pipeline owners  and third party project financing.
Wade Cherwayko, CEO of Mart stated:  "The signing of the COPA with Shell Western is an important first step in Mart  and its Co-venturer's pursuit to secure an alternative export pipeline for  Umusadege oil and to mitigate the export risks associated with current reliance  upon a single export pipeline. The COPA, which sets out the terms of future oil  sales from the Umusadege field, will enable Mart and the Co-venturers to move  ahead with plans for the financing, design, construction, ownership and  operation of the Ogini Pipeline. In addition to mitigating the export risk, the  Ogini Pipeline will also provide additional export capacity which is needed  given the recent success of the UMU-9 well and anticipated future production  levels from the Umusadege field."
Read more: http://www.oilvoice.com/n/Mart_Resources_Agreement_for_alternative_export_pipeline_for_Umusadege_field/bba2010ca365.aspx#ixzz1z6bkcRNf

Re: Mart Resources

I could not find the latest quarter results on MMT's web site, I posted the latest one on the RBC Action Direct web site.  I suggest anyone interested in MMT compare those results with what Chen Lin had said before investing.  I personally would not invest in Nigeria.   

Re: Mart Resources

Impressive , Global,but ... No doubt oil plays in Africa are getting hot.Better to be  in on something before the Chinese do, I guess. They are really buying and with about 3 trillion in foreign currency ,it's all got to go somewhere . I'm just too set on North America.  Will an oil company in Nigeria work well  ?,Sure  it will but...

Re: Mart Resources

Taken From Mart"s Latest Quarter Release: 

Mart Announces Financial and Operating Results for the Quarter Ended March 31, 2012

30 May 2012 - ACQUIREMEDIA
<body.content>

CALGARY, ALBERTA--(Marketwire - May 30, 2012) - Mart Resources, Inc. (TSX VENTURE:MMT) ("Mart" or the "Company") is pleased to announce its financial and operating results for the three months ended March 31, 2012 ("Q112") (all amounts in Canadian dollars unless noted):

THREE MONTHS ENDED MARCH 31, 2012

-- Net income for Q112 was $38.2 million ($0.11 per share) compared to net
income of $7.8 million ($0.02 per share) for the three months ended
March 31, 2011 ("Q111").

-- Funds flow from production operations of $55.0 million ($0.16 per share)
for Q112 compared to $23.9 million ($0.07 per share) for Q111 (see Note
1 to the Financial and Operating Results table below regarding Non-IFRS
measures).

-- Mart's share of Umusadege field oil produced and sold in Q112 was
631,202 barrels of oil ("bbls") compared to 332,890 bbls for Q111.

-- The average price received by Mart for oil in Q112 was USD $115.61 per
bbl (approximately $115.74 per bbl) compared to USD $91.80 ($90.54 per
bbl) for Q111.

-- Mart's average share of daily oil produced and sold for Q112 from the
Umusadege field was 6,936 barrels of oil per day ("bopd") compared to
3,698 bopd for Q111.

-- During Q112, the Umusadege field was shut-in for a total of 18 days
(Q111 - 18 days) due to various disruptions in the export pipeline, well
testing activities, maintenance and modification of production
facilities.

-- Well tests were completed on UMU-9 well in Q112 resulting in a combined
stabilized flow rate of 11,718 bopd from the five sands tested.

-- In February 2012, Mart and Network Exploration & Production Nigeria
Limited ("Network") mutually terminated Mart's participating interest in
the Qua Ibo field. Network has assumed responsibility for Mart's
previously outstanding liabilities of approximately USD $3.6 million for
the Qua Ibo field and has also paid Mart a USD $1.0 million termination
fee. A gain of $4.6 million has therefore been recognized in Q112.

 

FINANCIAL AND OPERATING RESULTS

The following table provides a summary of Mart's selected financial and operating results for the three months ended March 31, 2012 and 2011 and the twelve months endedDecember 31, 2011:

CDN $ 000's
(except oil produced and
sold, per share
amounts, and oil 3 months ended 3 months ended 12 months ended
prices) Mar 31, 2012 Mar 31, 2011 Dec 31, 2011
----------------------------------------------------
Mart's share of the
Umusadege Field:
Barrels of oil produced
and sold 631,202 332,890 1,803,459
Average sales price per
barrel $ 115.74 $ 90.54 $ 102.08
Mart's percentage share
of total Umusadege oil
produced and sold
during the period 82.5% 61.2% 71.1%
Mart's share of
petroleum sales after
royalties $61,952 $26,979 $162,431
Funds flow from
production operations
(1) $55,021 $23,948 $144,129
Per share - basic $ 0.16 $ 0.07 $ 0.43

Net income (2) $ 38,179 $ 7,800 $ 71,801
Per share - basic (2) $ 0.11 $ 0.02 $ 0.21
Per share - diluted (2) $ 0.11 $ 0.02 $ 0.21

Total assets (2) $ 236,539 $ 119,665 $ 198,021

Total bank debt $ Nil $ 4,139,935 $ Nil

Weighted average shares
outstanding for period:
Basic 336,752,599 336,048,202 336,084,275
Diluted 348,471,587 344,951,987 344,318,066

Notes:

(1) Indicates non-IFRS measures. Non-IFRS measures are informative measures
commonly used in the oil and gas industry. Such measures do not conform to
IFRS and may not be comparable to those reported by other companies nor
should they be viewed as an alternative to other measures of financial
performance calculated in accordance with IFRS. For the purposes of this
table, the Company defines "Funds flow from production operations" as net
petroleum sales less royalties, community development costs and production
costs. Funds flow from production operations is intended to give a
comparative indication of the Company's net petroleum sales less production
costs as shown in the following table:

3 months ended 3 months ended 12 months ended
CDN $ 000's Mar 31, 2012 Mar 31, 2011 Dec 31, 2011
----------------------------------------------------------------------------
Petroleum sales $ 73,055 $ 30,139 $ 184,100
Less: Royalties and
community development costs 11,103 3,160 21,669
----------------------------------------------------------------------------
Net petroleum sales 61,952 26,979 162,431
Less: Production costs 6,931 3,031 18,302
----------------------------------------------------------------------------
Funds flow from production
operations $ 55,021 $ 23,948 $ 144,129
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(2) For comparative purposes, net income for the first quarter of 2011
includes quarterly adjustments for corrections to depletion expense,
depreciation expense, share-based payments, general and administrative
expenses, deferred tax expense, earnings per share - basic, earnings per
share - diluted and total assets. Each of the first three quarters of 2011
will contain adjustments to correct the foregoing items. The audited
Consolidated Financial Statements for the years ended December 31, 2011 and
December 31, 2010 are unaffected by these adjustments and remain unchanged.
Details of these changes for the first quarter of 2011 are set out in Note
11 of the Condensed Consolidated Financial Statements for the three months
ended March 31, 2012.

Re: Mart Resources

Nice pick GI.  I suggested MMT to Southpen a while back in the gold and silver forum.  Best oil plays are in the MENA region, not in Canada.  Unfortunately, I've made it a rule not to invest in MENA.