Mart Resources, Inc. and its partner Network Exploration & Production Company Nigeria Limited have amicably resolved their dispute over Mart’s contractual rights in the Qua Ibo field, onshore Nigeria, and the arbitration proceedings have been discontinued. Mart and Network are now proceeding with plans to drill their first well using Mart’s drilling rig NRG-201.

Mobilization of the rig from Port Harcourt to the Qua Ibo well site will commence in the next few days and the partners anticipate that the rig will be rigged-up on site and ready to commence drilling operations by the end of June.

The Qua Ibo field is a multi-reservoir oil field located in the eastern part of Nigeria’s Niger Delta region. The field was discovered by Shell in 1960 but it was never put into production. The field was awarded to Network under the Nigerian Government’s Marginal Field Allocation program in April 2004.

Under the terms of the agreement between Mart and Network, Mart will provide all of the capital required for the development of the two main oil reservoirs in the field in return for a share of the hydrocarbons produced from those two reservoirs. Any capital required for the development of other reservoirs in the field will be provided jointly by Mart and Network, who will then share the hydrocarbons produced from such other reservoirs.