Midwestern Oil and Gas Company Limited today confirmed the termination of the business arrangement it had with Mart Resources, Inc. It however blamed the development on the inability to raise enough funds to finance the transaction. This day reports

The management of Midwestern Oil and Gas Limited noted that it chose to terminate the “Arrangement Agreement” between both companies in accordance with its terms. The company explained further in a statement that the decision to terminate the transaction was derived from the comprehensive macro-environment for emerging market exploration and production companies, as well as the falling oil prices, the volatile Mart share price and the unique nature of Mart’s interest in the Umusadege field by virtue of the RSA, all of which had made it difficult for the company to raise the expected finance to drive the project.

The statement added that “Midwestern believes that Mart has historically been a strong strategic partner in the development of the Umusadege field. Midwestern anticipates continuing to work with Mart under the defined terms of the existing risk services agreement between the parties (the “RSA”). The company declared that they will continue to explore tactical alternatives with Mart in addition to alternative funding sources. Midwestern, as the operator of the Umusadege field and Umugini Asset Management Company Limited, will continue to remain dedicated to operating and further developing the Umusadege field and supporting the management team of Eroton Exploration and Production Company Limited in operating the recent OML 18 acquisition.