Hydrocarb Energy Corporation is pleased to announce the completion of a farm-out agreement to Duma Energy Corporation (DUMA). Houston-based Duma, with current production in the Gulf Coast, acquires a 39% working interest in Owambo blocks 1714A, 1715, 1814A, and 1815A in northern Namibia.
Kent Watts, Hydrocarb’s Chief Executive, stated, “Our vast and underexplored concession shows tremendous potential based on the data available to date. We have reviewed a third party report already estimating over a billion barrels of un-risked resource potential out of a single identified structure. The Duma partnership allows us to move aggressively towards our ultimate goal, to make a major discovery in Namibia. We anticipate building on new technical findings as the exploration process unfolds.”
The concession, over 5 million acres, is roughly the size of Massachusetts. Northern Namibia has all of the key ingredients for becoming a major oil province, including good reservoir and source rocks. Hydrocarb, as 51% owner, retains its role as operator on all blocks. The new partnership includes NAMCOR, the Namibian National Oil Company as a 10% partner, and Duma at 39%. The commercial terms for the Owambo Petroleum Contract are highly favorable with reasonable onshore operating and exploration costs. Namibia, an English speaking democracy, has proven to be one of the most stable countries on the continent.
Despite its extensive resources, Africa remains greatly under-explored. Recent discoveries of large oil and gas reserves by companies such as Kosmos (KOS) and Tullow PLC (LON:TLW) suggest oil and gas production in Africa may be on the verge of dramatic growth. Major and independent players such as Chevron (CVX) and Hyperdynamics (HDY) have secured huge acreage positions and are budgeting billions of dollars for exploration.
Duma Energy Corp.’s Chief Executive, Jeremy Driver, commented, “Our concession is in the Namibian portion of the Owambo Basin which extends into southern Angola and is one of the largest unexplored onshore basins in Africa.” He went on to say, “This partnership with Hydrocarb fits our core strategy to continuously develop profitable production domestically while also participating in high impact opportunities internationally that have world class potential.”