OilVoice - Mart Resources Provides Update on Corporate Sale Transaction

Mart Resources Provides Update on Corporate Sale Transaction

Tuesday, August 18, 2009

Mart Resources, Inc. announces the following update to its previous news release of May 27, 2009, which announced the signing of a Letter of Intent between Mart and a private African oil and gas company (the “Purchaser”) with respect to the sale of all the outstanding common shares of Mart to the Purchaser (the “Corporate Transaction”).

Mart is continuing to work with the Purchaser to finalize the definitive transaction documents in respect of the Corporate Transaction. The Corporate Transaction is expected to be carried out by way of a plan of arrangement under the provisions of the Business Corporations Act (Alberta). The closing of the Corporate Transaction, which will be subject to the satisfaction of numerous conditions including certain conditions in favour of the Purchaser, the approval of Mart securityholders and the approval of the Alberta courts, is now expected to occur in late September 2009.

A notice of meeting and management information circular in respect of a meeting of Mart security holders expected to be held in late September and providing full details of the Corporate Transaction is expected to be mailed to Mart securityholders in early September 2009. Mart intends to issue a supplemental press release when the definitive transaction documents have been finalized and executed.

Receipt of Default Notices

Mart announces the following update on its activities in Nigeria:
At the Qua Ibo Field, Mart’s indirect wholly owned subsidiary, Mart Qua Ibo Resources Nigeria Limited (“Mart Qua Ibo”), has received a default notice from its partner Network Exploration & Production Limited. The default notice purports that Mart Qua Ibo has failed to furnish evidence of financial sufficiency with respect to the approved work program and budget for the third quarter of 2009 and states that Mart Qua Ibo has until October 19, 2009 to remedy the alleged default.

At the Ke Field, Mart’s indirect wholly owned subsidiary, Mart Ke Resources Limited (“Mart Ke”) has received a default notice from its partner Del-Sigma Petroleum Nigeria Limited. The default notice purports that Mart Ke has failed to pay certain cash calls in relation to site preparation work at the Ke field site and states that Mart Ke has until September 11, 2009, to remedy the alleged default. The default notice further purports that Del-Sigma may terminate the Finance and Production Sharing Agreement between Mart Ke and Del-Sigma if the default is not remedied.

The Purchaser has been informed of these default notices as part of its due diligence and the ongoing negotiation of the Corporate Transaction documents.