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Mart Resources Starts First Production From Umusadege Field

04-25-2008

Mart Resources Incorporated and its partners, Midwestern Oil and Gas Company plc and Suntrust Oil Company Nigeria Limited announced the commencement of crude oil production from the Umusadege oilfield near Kwale in Delta State.

Mart Resources said in a statement that first oil production had commenced at the Umusadege field from the XIIb zone of the UMU-1 well. According to the statement, the XIIb and XIIa zones will be flowed individually for a period of approximately 30 days.

 The company also said that based upon the results of previous tests, it was anticipated that the production rate during this initial production period would be in the range of 2,000 to 3,000 barrels a day. Following the initial production period, the partners intend to commingle production from the two zones and this is expected to result in an increased production rate from the well.

It would be recalled that Mart Resources Incorporated and its partners recently entered into a crude oil handling agreement with AGIP for their oil pipeline and terminal system. Under the terms of this agreement, which was sealed with Midwestern Oil and Gas, Umusadege oil field operator, AGIP would receive crude oil from the Umusadege Field and other surrounding fields at their Kwale flow station and deliver it to AGIP’s Brass River export terminal for loading onto export tankers.

The Kwale flow station in Delta State is located some 14kilometres of the south-east of the Umusadege field.
The partners also recently announced results of the initial cleanup flow rates from the UMU-N2 well located in the oil field.

The results show that UMU-N2 well flowed at a rate of 1,646 barrels of oil per day on a 28/64-inche choke.
The gas/oil ratio was 5620 standard cubic feet (SCF) per barrel for an average gas rate of 5.7 million standard cubic feet per day. The gas/oil ratio increased to an average of 5620 scf per barrel over the 27.5 hour flow period.