Duma Energy has rapidly emerged from a portfolio of domestic hydrocarbon assets which put it in line for a 2013 production target of 2,500 boepd (barrels of oil equivalent per day). This level of production also suggests that Duma Energy is ready to join the international energy game via a number of carefully selected project acquisitions in exceptional return markets.
Churning out some 38,000 boe in FY11, with another 45,000 boe in the first half of FY12, DUMA has aggressively applied an operational strategy rooted in a serious financial commitment by the CEO and other insiders which devolves into 75 percent of capital (since inception) invested by these parties, whose interests remain strongly aligned with the shareholders. This operational blueprint also focuses on direct emphasis in creating solid financial returns with delimited risk, and the deployment of industry standard, time-tested systems while avoiding risky resource plays that are heavily margin-dependent.
This same drive has placed the company in control of an impressive portfolio of producing domestic oil and gas properties, both on and offshore. With a geological and engineering team able to digest the complex logistical requirements essential to successfully producing onshore and offshore targets, DUMA has some $77M or more in proven resources under its hat (some $12M as booked reserves), and the talent and dedication to bring it in. The significance of such domestic energy producers in helping to create a larger U.S. strategic energy independence envelope should not be underestimated, and Duma Energy’s aggressive approach to developing domestic hydrocarbons along profit-driven, ROI-centric lines has really caught the attention of investors.
With assets in Texas leading the pack, DUMA has a solid foundation from which to explore international target development, as the Illinois and Louisiana projects dovetail with a broader approach to stabilize a low-risk, high-return footprint here in the U.S. that is on target for the current year-end goal of being a 1,000k boepd producer. The Company currently stands at 600 boepd, well up from initial operational figures in March 2010 of some 300 boepd. With 130 wells – 27 actively producing – and significant ongoing re-completions as well as new drilling, DUMA is poised to achieve the kind of revenue growth and cash flow projections mapped out by management.
Currently the company averages operating margins in the 50th percentile range thanks to efficient cost controls, and looks to have new production coming online to increase these margins moving forward. DUMA posted earnings of $73,000 for third quarter results (period ending Apr 30) on revenue of $1.8 million, both figures up significantly from the previous quarter.
With a nonstop near-term agenda of aggressive development, and the company’s eyes peeled for lucrative international acquisitive activity, Duma Energy is well-positioned to drive precisely the kind of shareholder returns that the company’s operating strategy was founded on. At DUMA, the primary focus isn’t just on barrels of oil produced, but on realized ROI for the company’s shareholders and efficient growth of the metrics which produce those returns.
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