When Duma management points to the rapid increase in oil production from their wells in Galveston and Trinity Bay, just offshore form Houston, indicating that production has jumped from less than 100 BOEPD (barrels of oil equivalent per day) to over 500 BOEPD, and then states confidently that production should grow to over 1000 BOEPD by the end of the year, and 2500 BOEPD by the end of 2013, it’s not an example of executive wishful thinking. The numbers are simply based upon what has been tapped and what has been untapped.
The current 500 BOEPD is being produced by only a fraction of Duma’s available wells in the two bays. Specifically, out of the 130 wells the company has in Galveston Bay and Trinity Bay, only 27, roughly 20%, of the wells are currently active. As the other nearby wells come online, production will increase. At the same time, operational margins are expected to improve, directing more money to the bottom line.
More than beefing up Duma’s financial picture, this domestic productivity, including additional projects in Texas and other parts of the U.S., serves to finance the company’s exploration projects overseas. In particular, it currently supports Duma’s working interest in a 5.3 million acre petroleum concession in Namibia, Africa. Namibia is a small country of just over 2 million people, with a representative government that is considered one of the most stable in Africa. Duma obtained its interests through the acquisition of Namibia Exploration, now a wholly owned subsidiary.
The concession is located in the Owambo Basin in northern Namibia. The basin was formed primarily during the Proterozoic Era, and appears to contain the major elements required to produce a major petroleum system: source rock, reservoir rock, reservoir trap, and reservoir seal. Having a dependable source of income from domestic production gives Duma the opportunity to explore and develop what could become major finds.
For additional information on Duma Energy, visit the company’s website at www.DUMA.com
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