* working capital of $0.12 per share with no LT debt
* multiple light oil well drilling locations in Viewfield, SK
* carried interests with no drilling costs
* natural gas at Pembina – 10-12 additional locations identified
Latest presentation from Mart Resources at their annual meeting in Calgary. No big news but drilling platform for the next three wells is built. Waiting for concrete to cure so first spud is likely around 7/15/10. These three wells are development wells with a good chance of success.
There are multiple zones in the field so the three wells will be targeting different zones. That increases the chances of success. In addition, in a separate operation to maintain production levels in the original two wells, they will be reworked to open multiple zones.
Bobwins
Posted: Fri Jun 11 15:12:17 2010
Nothing big was announced in the update. The telephone conference call was poorly done so it was hard to hear the speaker. Here is what I got from the call.
1. Drilling development wells was delayed. Won't spud for another 30 to 45 days due to swampy conditions that have made building a platform very difficult. They need the platform to drill 3 wells so it's very important to the near term results of Mart. Once done, they should be able to proceed with all three wells in a row.
2. They have recovered their costs so are not at 50% WI on the two producing wells. As they spend money on the new wells, they will go back and forth between 50 and 100% for the rest of the year.
3. Drilling the development wells will not interfere with the reworking of the original two wells. They intend to open up several zones in each well rather than the one zone each is now producing.
4. The new wells should have a dramatic effect on cashflow and production, likely more than doubling both.
5. Company is bidding on additional fields in Nigeria.
6. With the delays, I am not sure they will get all three wells drilled this year. Hopefully the first one will be successful and will be brought online around September.
Still feel that Mart is undervalued and bought more at .215 this week. Any big moves in the stock will likely not happen until the development wells are drilled and production and cashflow increase as a result.
Bobwins
Posted: Thu Jun 10 7:24:19 2010
Press Release Source: Mart Resources, Inc. On Wednesday June 9, 2010, 12:13 pm EDT
CALGARY, ALBERTA--(Marketwire - June 9, 2010) - Mart Resources, Inc. (TSX VENTURE:MMT - News; "Mart" or the "Company") announces that, in connection with senior management's attendance at the Global Petroleum Show in Calgary, Alberta, an update on the Company's operations will be presented on Thursday, June 10, 2010 at 10:00 am (Mountain Standard Time) in the Hartford Room of the Calgary Ranchmen's Club, 710 13th Avenue S.W., Calgary, Alberta.
Shareholders and others who are interested in this presentation but unable to attend may join the meeting via teleconference. The call-in instructions are as follows:
The presentation will also be posted on the Company's website and on SEDAR.
Bobwins
Posted: Sat May 8 17:10:44 2010
MMT.v bought more Thursday at an avg of .275.
If development wells come in, this will be a very profitable company. Near term, net production will likely drop before they get any revs from new wells they are drilling. Cash costs must have been recovered by now and net WI will drop to 50% so net to MMT.v will drop to 1850bpd. Still hoping for continued debt paydown and successful first drill.
oilerman
Posted: Tue May 4 19:43:22 2010
Bobwins, just looking on the surface of this company and if managment had any kind of cost control...man..this company has potential.
But even run poorly..they are sloshing in cashflow....
Bobwins
Posted: Thu Apr 22 10:09:39 2010
-.005 to C$.34
Still dangerous, still risky but still lots of upside. The company was on the brink last year. 4,000bpd cures a lot of ills. a/p getting paid down, cash available for drill program. First spud next month. Development well so low risk. Second development well in Q3. Should hear results in July/August. I added more today at .345. Balance sheet is improving, cashflow is good and more oil could be on the way. This could end up being a $2 stock by late next year.
Press Release Source: Mart Resources, Inc. On Thursday April 22, 2010, 8:30 am EDT
CALGARY, ALBERTA--(Marketwire - April 22, 2010) - Mart Resources, Inc. (TSX VENTURE:MMT - News; "Mart" or the "Company") and its partners, Midwestern Oil and Gas Company PLC (Field Operator) and Suntrust Oil Co Ltd are pleased to announce that all requisite Government approvals have been obtained, all surface land rights have been acquired and site preparation has commenced for the drilling of the UMU-6 development well located on the Umusadege Field. Two development wells are currently in production on the Umusadege Field, UMU-1 and UMU-5.
The drilling of the UMU-6 well is the first stage of Mart and its partners' 2010 development drilling program, which will also include re-completing the existing UMU-1 and UMU-5 wells from single zone to multiple zone producers. Additional development drilling on the Umusadege Field will be evaluated following completion of the drilling of the UMU-6 well.
The UMU-6 well is scheduled to be drilled as a vertical well to a depth of approximately 8,800 feet and it is anticipated that the well will be completed as a dual zone producer. The UMU-6 well is located adjacent to the producing UMU-5 and UMU-1 wells which, assuming drilling success, will allow for easy access to nearby production facilities.
Production for the Umusadege Field in the first quarter 2010 averaged 3,843 bopd. The UMU-5 well came on stream in April 2009 and has produced 777,299 barrels of oil to date, with stable production during the first quarter of 2010 averaging 2,137 barrels of oil per day (bopd). UMU-1 well production averaged 1,706 bopd in the first quarter of 2010.
Wade Cherwayko, Chairman & CEO of Mart, said "The drilling of the UMU-6 well advances the objectives of Mart and its partners to fully develop the reserves contained in the Umusadege Field. The Umusadege Field's continued stable production, averaging of 3,843 barrels of oil per day in Q1 2010, combined with firmer oil prices has enabled Mart to generate sufficient cash flow to reduce trade payables, reduce bank debt and to commence the development drilling program. Mart remains focused on increasing shareholder value over the short to medium term by developing the Umusadege Field."
Bobwins
Posted: Wed Apr 21 11:17:05 2010
MMT.v +.035 to C$.345 not sure what's going on but huge volume of 2.85 million shares traded. Someone on another board said they had their board meeting so maybe they firmed up their drilling schedule and funding. Not sure but very happy with the return since March!
Bobwins
Posted: Tue Apr 13 15:18:33 2010
Mart, mmt.v C$.30 getting discovered. 2 million volume today. New 52wkhi. Still undervalued from a cashflow standpoint, although they have to hit one or more wells this year to avoid revs dropping. They have 50% WI after costs are recovered so first well will be paid off pretty soon and revs will drop from 100 to 50%.
Bobwins
Posted: Mon Apr 12 8:49:07 2010
MMT.v +.045 to C$.27 big move today on no news. Very undervalued because of Nigerian location but there's oil there and Mart is getting 4,000bpd. Drilling 2 developmental wells in Q2 and Q3 that should boost production to near 10,000bpd by year end.
Bobwins
Posted: Mon Mar 29 10:19:02 2010
MMT.v +.035 to C$.225
Bought some more mmt.v today at .21. Stock appears to be getting noticed. Volume is huge at 3.544million so far today. Company is planning two new development wells into their producing field in Q2 and Q3. They need to keep drilling because their deal is 100% of drilling costs to get 50% working interest. However, they get 100% WI until they recover their drilling costs. So right now they are collecting 100% of current production of around 4,000bpd.
Revs will drop by 50% once they recover costs. Drilling, hopefully successful, will delay the big drop. Company is forecasting increase to 10,000bpd by year end.
They earned .001 eps in Q3 but .045 cashflow. Selling for around 1X cashflow because of previous high debt and possibility that revs will drop after cost recovery. AND the biggest reason is that they are in Nigeria.
This is high risk but dirt cheap. I can't resist.
Bobwins
Posted: Fri Mar 5 11:21:26 2010
Bought some mmt.v today. They are a high risk producer in Nigeria. They are producing around 4,000bpd net to them. Were in bad financial shape and put the company up for sale last year. The rebound in oil prices and production has helped the company generate good cashflow and get current on debts. They have had to cut overhead and let one project go to focus on their producing field.
Cash was too tight to pay debt, suppliers and still drill so there has been no drilling for several qtrs.
Recent improvement in cashflow has changed that picture so there are drilling plans but date is unspecified.
This is definitely high risk from several views. There is the risk of producing onshore in Nigeria as well as the financial risk of their balance sheet.
I think the cashflow from the production cures a lot of ills. Another couple of qtrs of this kind of cashflow will get them back in more normal operating mode. This is VERY cheap.
