Atlanta, United States (IBwire.com - September 18, 2012) Duma Energy, the Houston-based domestic energy developer which has aggressively assembled an extensive portfolio of producing on/offshore oil and gas here in the U.S., took a bold step into the global hydrocarbon arena recently, reporting that the company has fully executed on the Aug 7 share exchange agreement with Namibia Exploration, Inc. (NEI), rendering NEI a wholly-owned DUMA subsidiary.
DUMA has thus obtained a 39% working interest (43.33% cost responsibility) in the some 5.3M acre onshore petroleum concession controlled by NEI in the Republic of Namibia. The local Ministry of Mines and Energy has approved Petroleum Exploration License No. 0038 to cover the property and DUMA will be engaged alongside both the National Petroleum Corporation of Namibia Ltd. (NAMCOR, 10% carried WI) and Namibia-chartered, majority-owned Hydrocarb Corp. (organized under Nevada law) subsidiary, Hydrocarb Namibia Energy Corp.
This is an extremely strong, lucrative position for DUMA, who will stand beside operator Hydrocarb Namibia (51% WI with 56.67% of cost responsibility) as the project advances, providing the kind of veteran guidance this large project needs to reach full maturity quickly. Hydrocarb has also been brought in via a consulting services agreement associated with the deal and will provide the kind of full-spectrum consulting needed to handle the localized Namibian logistics and other considerations. Hydrocarb has even agreed to calling the farm-in opportunity report obligations between itself and NEI settled by the $2.4M consulting fee (payable over 2 years through cash and/or DUMA restricted common shares).
This is a sweet deal for DUMA shareholders and gives the company profound access to prime acreage in what is arguably one of the most transparent and professional governments in all of resource-rich Africa. Namibia is an ideal place for the company to seize a firm global foothold and this project has the kind of long-term production potential to make it the flagship of what could become a fleet of non-domestic operations for the oil and gas developer.
Chairman and CEO of DUMA, Jeremy G. Driver, cited encouraging initial findings backed up by solid geological indices from the massive concession and asserted that the company was quite eager to see the first round of what should be an exciting exploration campaign. Hydrocarb (offices in Abu Dhabi, UAE and Windhoek, Namibia) has a ton of experience in this area and a known taste for under-explored, emerging plays in highly prospective regions. The combined expertise of these two firms should produce considerable news as the exploration campaign ramps up.
President and CEO of Hydrocarb, Pasquale Scaturro, emphasized the stability of the region and utter professionalism of the Namibian government. Scaturro pointed to both the size and premium quality of the concession at hand, characterizing the basin which this concession sits in as being extremely prospective in general. The tantalizing potential of this geology (especially in light of recent offshore discoveries and operations like the Kudu gas field), taken into context with successful regional onshore operations and initial data from the concession, makes this deal look very powerful for DUMA shareholders.
Driver’s comment about the concession being the size of Massachusetts should give any potential investor pause for thought and NAMCOR’s open attitude, as stated in their own policy, makes it a very agile foothold for a growth-focused developer like DUMA.
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