Duma Energy acquires 5.3 million acre concession in Namibia
Friday, 07 September 2012 14:53
Duma Energy has been granted a 5.3mn acre concession in the Owambo Basin, Namibia, as part of the company's recent acquisition of Namibia Exploration Inc (NEI)
Duma announced that it has received a 39 per cent working interest in the onshore petroleum concession, with 43.33 per cent cost responsibility.
The Petroleum Exploration License No 0038, issued by the Namibian Ministry of Mines and Energy, means that Duma holds its indirect working interest in partnership with the National Petroleum Corporation of Namibia (NPC) and Hydrocarb Namibia Energy Corporation, a majority-owned subsidiary of Hydrocarb Corporation.
Hydrocarb Namibia, as operator of the concession, holds a 51 per cent working interest with 56.67 per cent cost responsibility and NPC Namibia holds a 10 per cent carried working interest in the concession.
Jeremy Driver, chairman and CEO of Duma Energy, said, “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.
“We are excited to move forward with the exploration phase in Namibia and are encouraged by the geological progress and findings so far.”
In conjunction with the closing of the acquisition, Duma Energy revealed it had entered into a consulting services agreement with Hydrocarb, Hydrocarb will provide consulting services with respect to the company’s business ventures in Namibia for a fee of US$2.4mn.
Pasquale Scaturro, president and COO of Hydrocarbon, added, “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.”