Houston-based oil and gas exploration and production company Duma Energy represents a new wave of global oil and gas exploration with its recently announced move to actively explore in Namibia, on the southwest coast of Africa. Historically, the oil and gas industry was focused on the Americas, followed in the second half of the 20th century by the Middle East, and now Russia, China, and Europe. African producers, such as Nigeria, Libya, Algeria, and Angola, were second-tier.
However, Africa is split up into some 54 individual nations. When viewed as a whole, it becomes clear that Africa has a great deal to offer and ranks much closer to the top in the global resource list. With well over a billion barrels of proven oil reserves, Africa represents a significant slice of the world's fossil resources, and production continues to increase. While the easy to negotiate sands of Arabia have dominated the world's oil industry, offering massive supplies that are centrally located with direct access to the sea, attention is turning to other areas of the world. Although untold resources may still lie in parts of the world's oceans, the intimidating costs of offshore drilling is steering industry attention to the still largely unexplored continent of Africa.
Namibia, on the continent's southwest coast, is still a relatively small player in the oil industry, but, like much of Africa, it remains underexplored. It is known to have both gas and oil, and its strong ties to South Africa, from which it split off, have left it with access to a fairly substantial oil infrastructure. Duma's interests lie in the northern part of Namibia, where it now holds a working interest in a petroleum concession of approximately 5.3 million acres. The concession is located in the Owambo Basin, a huge area that extends across the northern border into Angola, one of Africa's major oil producing countries. The company's exploration efforts are well-funded through its ongoing and stable domestic production operations in Texas.
For additional information on Duma Energy, visit the company's website at www.DUMA.com
Please see disclaimer on the MissionIR website http://www.missionir.com/disclaimer.html
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.