Duma Energy Receives Approval from Government of Namibia for Exploration License Issued for 5.3 million-acre Concession

abarrelfullabarrelfull wrote on 07 Sep 2012 05:52
Tags: africa duma namibia upstream

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Duma Energy Corp. (OTCBB: DUMA) is pleased to announce that it has completed the share exchange agreement, dated August 7, 2012 (the “Agreement”) with Namibia Exploration, Inc. (“NEI”); the “Acquisition”. As a result of the completion of the Acquisition, NEI became a wholly owned subsidiary of Duma.

Duma, indirectly through NEI, has received a 39% working interest (43.33% cost responsibility) in an onshore African petroleum concession (the “Concession”) located in the Republic of Namibia which is approximately 5.3 million acres in size covered by Petroleum Exploration License No. 0038 issued by the Republic of Namibia Ministry of Mines and Energy. Duma holds its indirect working interest in the Concession in partnership with the National Petroleum Corporation of Namibia Ltd. (“NPC Namibia”) and Hydrocarb Namibia Energy Corporation (“Hydrocarb Namibia”), a company chartered in the Republic of Namibia and which is a majority owned subsidiary of Hydrocarb Corporation (“Hydrocarb”), a company organized under the laws of the State of Nevada, USA. Hydrocarb Namibia, as operator of the Concession, holds at 51% working interest (56.67% cost responsibility) in the Concession and NPC Namibia holds a 10% carried working interest in the Concession.

“The timely issuance of the concession license by the government of Namibia allows us now to begin focusing our efforts on the task of exploring our massive concession, which is roughly the size of the state of Massachusetts,” stated Jeremy G. Driver, Chairman and CEO of Duma Energy Corp. Driver added, “We are excited to move forward with the exploration phase in Namibia and are encouraged by the geological progress and findings so far.”

Pasquale Scaturro, Hydrocarb’s President and Chief Operating Officer stated, “There are few governments in Africa that can match the transparency and professionalism of Namibia. We are truly pleased to have such a large and premium concession located in an extremely prospective basin.”

Consulting Agreement with Hydrocarb
In conjunction with the closing of the Acquisition, Duma entered into a Consulting Services Agreement with Hydrocarb (the “Consulting Agreement”) whereby Hydrocarb will provide various consulting services with respect to Duma’s business ventures in Namibia and Hydrocarb acknowledges and agrees that the obligations of NEI under the Farm-in Opportunity Report between NEI and Hydrocarb (the “FOR”) will be satisfied in exchange for Duma paying a consulting fee (the “Fee”) to Hydrocarb of $2,400,000, payable over a 2 year period using either cash or restricted common shares of Duma.

Further information regarding the Acquisition, the Consulting Agreement, or the concession in Namibia may be found at the Company’s website at www.duma.com or by viewing the Company’s recent SEC filings.

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