NEW YORK, June 27, 2013 /PRNewswire/ -- S&P Capital IQ announced today that it has commenced Standard & Poor's Factual Stock Report coverage on Duma Energy Corp.
Duma Energy Corp. (DUMA) produces oil and gas in the continental United States, both onshore and offshore. Duma also has a significant interest in a 5.3 million-acre concession in the Republic of Namibia in southern Africa. Production for the nine months ended April 30, 2013, totaled 44,433 barrels of oil and 129 million cubic feet of gas, or approximately 396 million cubic feet equivalent.
The company's U.S. properties are located in Texas and Illinois. In Galveston Bay, Texas, Duma plans to continue enhancing the production from its three northern productive fields in Galveston Bay. Duma's plans for these fields are primarily focused on reworking and recompleting a number of shut-in wells, as well as on infrastructure improvements to exploit the known reserves. These projects are estimated to have a much higher return on invested dollar compared with drilling projects. As Duma is already generating positive cash flow from the operations in Galveston Bay, it believes that additional oil and gas produced will have an increasing positive effect on the company's margin and cash flow. According to the company, the economies of scale that Duma hopes to achieve in all three of its fields in the bay should reduce its lifting costs on a per barrel or per mcf basis, further enhancing the value of the asset and Duma's cash flow. The plan to accelerate this development and increase production will be financed in part by divesting a 25% working interest to a partner/investor.
On May 30, 2013, Duma announced that it had received new 3D seismic data over its producing fields in Galveston Bay. The company's southernmost field in Galveston Bay, Bolivar, is no longer in Duma's core area of focus and lacks sufficient cash flow to remain a priority for the company. Duma plans to divest this field and associated infrastructure in the near future.
In September 2012, the company acquired Namibia Exploration, Inc. (NEI). NEI holds the rights to a 39% working interest (43.33% cost responsibility) in an onshore petroleum concession located in the Republic of Namibia, measuring approximately 5.3 million acres and covered by Petroleum Exploration License No. 0038 as issued by the Republic of Namibia Ministry of Mines and Energy. Hydrocarb Namibia Energy Corporation is the operator of the concession.
In Namibia, in conjunction with the operator, Duma will continue gathering data, including further source rock surveys, reservoir studies, seep studies, geologic mapping, and other analysis. Following this, the company plans to conduct aerial gravity and magnetic surveys in 2013 across its entire concession. Once interpreted, this should allow Duma to design its plan for 2D seismic acquisition. The company noted that 3D seismic will later be utilized for those identified structures which appear most prospective. After 3D data has been acquired and interpreted, Duma plans to seek partners who could engage in the task of actually drilling the concession to make a discovery. The terms of such a farm-out are not yet determined, according to the company.
Duma Energy Corp. is based in Houston, Texas.
Standard & Poor's Factual Stock Report coverage on Duma Energy Corp. will also be accessible on an ongoing basis to the investment community by scores of buy-side institutions and sell-side firms that utilize S&P Capital IQ research and information platforms daily. Millions of self-directed investors also have access to the report via their e-brokerage accounts. Please visit http://www.duma.com for additional information.
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