Duma Energy, an aggressive growth company actively producing oil and gas in the U.S., both on and offshore, announced today that it has entered into an agreement to acquire Namibia Exploration, Inc., (NASDAQ:NEI), making NEI a wholly-owned subsidiary of Duma. Namibia Exploration is organized under the laws of Nevada, with administrative operations in Texas.
NEI holds the rights to a 39% working interest in an onshore Namibian petroleum concession totaling approximately 5.3 million acres of the Owambo Basin in Namibia on the southwest coast of Africa.
According to Duma CEO, Jeremy Driver: "The Owambo Basin in Namibia, where our concession is located, is in the northern part of the country near the border of Angola. The exploration potential of this large concession is high and the preliminary data is encouraging. This acquisition fits our stated strategy of producing domestic cash flow in order to fund high impact international opportunities."
Duma will hold its indirect working interest in the concession in partnership with the National Petroleum Corporation of Namibia, Ltd., and Hydrocarb Namibia Energy Corporation, a company chartered in the Republic of Namibia, and which is a majority owned subsidiary of Hydrocarb Corporation, a company organized under the laws of Nevada.
Hydrocarb's President and COO, Mr. Pasquale Scaturro, spoke of the area's potential. "Africa remains a vastly under-explored continent despite increasing discoveries in recent years of world class oil and gas reserves by companies such as Kosmos and Tullow PLC. Major and independent players such as Chevron and Hyperdynamics have secured huge acreage positions and are budgeting billions of dollars for exploration. The Owambo Basin concession is over 5 million acres, roughly the size of Massachusetts. It has all of the key ingredients for becoming a major oil province, including good reservoir and source rocks that extend into southern Angola, one of the top oil producers in Africa. The commercial terms of our Petroleum Contract are highly favorable and since our concessions are onshore, operating and exploration costs are a fraction of those offshore."
Pursuant to the terms of the Agreement, Duma is required to issue shares of stock as consideration for the acquisition in accordance with particular milestones based upon market capitalization levels which must be reached within 10 years after the closing of the agreement.
For additional information on Duma Energy, visit the company's website at DUMA.com. The company will be updating its website to include further information regarding this acquisition and the Namibian concession, and a short video has been made available.
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