Mart Umusadege

Map of the Umusadege field (Image: Mart Resources)

Mart Resources (MMT:TSX) is out with a production update for the months of December and January. All signs show that the new Umugini pipeline is ramping up production as expected.

At press time the market likes the news sending Mart stock up 6 cents to $0.63 (10.53%).

December was the best production month ever for Mart as the much anticipated Umugini pipeline came on-line bumping production to an average of 18,505 barrels of oil per day.  Production in November was 10,194 barrels of oil per day.

Mart is currently producing oil through two pipelines the Umugini pipeline and the Nigerian Agip Oil Company Limited (“NAOC”) export pipeline.

Production has been increasing in January and hit a record daily volume of 29,000 bopd late in the month.

Mart is estimating line losses to be around 10% percent for the month of December for Umugini with numbers from the NAOC pipeline yet to be reported.

MMT1yrchat-Feb2

Mart remains an extremely high risk but high reward potential stock at these levels.

If the oil price rebounds you could see the momentum build especially with increasing production.

Investors still need to take into account the political risk factor of Nigeria. Nigeria has an election on February 14th which polls suggest will be a close race between two rival candidates. Violence lately by the Islamist sect Boko Haram has citizens worried about even going to the polls to vote.

Symbol: MMT.T

Share price: $0.61
Shares outstanding: 356.94 M
Market cap: $217.7 M

Read: Operations and Production Update

Related: Calling all Speculators or Significant news from this Nigerian Oil Junior or Nigerian Oil Junior frustrates investors

The author of this article owns shares in Mart Resources and is therefore biased. This is not investment advice.All facts are to be checked and verified by reader. As always please do your own due diligence.