‘Pipeline Losses Declined In 2014’-Mart Resources

Losses of crude oil via pipeline, largely through theft, declined in parts of the Western Niger Delta in the last one year, to go by data from Mart Resources.

The Canadian independent says that “during the six months ended June 30, 2014, the Umusadege field was shut down for a total of 44.5 days”, the company reports in its 1H 2014 update.  This is a sharp drop from 74 days of shut down in the same period in 2013, “due primarily to various disruptions, repairs, and maintenance to the export pipeline and export facility”.

“Mart’s share of average daily oil produced and sold for the six months ended June 30, 2014 from the Umusadege field per calendar day was 6,047 barrels of oil per day (BOPD) compared to 3,827 BOPD for the six months ended June 30, 2013”.

Mart’s share of average daily oil produced and sold for the six months ended June 30, 2014 from the Umusadege field per production day was 8,019 BOPD compared to 6,474 BOPD for the six months ended June 30, 2013.

Net income for the six months ended June 30, 2014 was $13.1 million ($0.037 per share) compared to $21.0 million ($0.059 per share) for the six months ended June 30, 2013, the company reported. Cash flows from operating activities were an inflow of $43.1 million for the six months ended June 30, 2014 compared to an inflow of $32.7 million for the six months ended June 30, 2013. Excluding the changes in non-cash working capital, the cash flows from operating activities for the six months ended June 30, 2014 were an inflow of $53.0 million (2013: $33.8 million), which represents an increase of $19.2 million in the six months ended June 30, 2014 compared to six months ended June 30, 2013. “The higher cash flows from operating activities during the period were primarily due to increased production due to fewer days of export pipeline and export facility shutdowns, offset by increased production costs, business development and corporate costs and taxes on venture production for the six months ended June 30, 2014 compared to the six months ended June 30, 2013”.

The company said that Funds flow from continuing production operations was $84.4 million ($0.237 per share) for the six months ended June 30, 2014 compared to $48.0 million ($0.135 per share) for the six months ended June 30, 2013.

• Mart’s share of Umusadege field oil produced and sold for the six months ended June 30, 2014 was 1,094,566 barrels of oil (bbls) compared to 692,713 bbls for the six months ended June 30, 2013.
• The average price received by Mart for oil sales for the six months ended June 30, 2014 was $110.85 per bbl compared to $109.53 per bbl for the six months ended June 30, 2013.
• Mart’s share of Umusadege field pipeline and export facility losses (“pipeline losses”) for the six months ended June 30, 2014 was 241,578 bbls (2013: 136,903 bbls), or approximately 17.8% (2013: 16.0%; actual six months ended June 30, 2013 pipeline losses that were subsequently reported by the pipeline operator were approximately 24.0%) of Mart’s share of total crude deliveries from the Umusadege field.