When Duma Energy, an aggressively growing Houston-based oil and gas exploration and production company, recently announced an agreement to acquire Namibia Exploration, Inc., a company that holds the rights to a 39% working interest in an onshore petroleum concession of roughly 5.3 million acres in northern Namibia on Africa’s southwest coast, it represented a major step forward. Until this time, Duma had focused on domestic oil and gas, with major production coming from off-shore wells in the shallow waters of Galveston Bay and Trinity Bay near Houston, Texas.
But Duma’s African acquisition did not diverge from the company’s clearly stated strategy, which basically calls for developing domestic production and cash flow in order to fund high-impact international opportunities. In the case of the Namibia concession, the company called the exploration potential high with preliminary data being encouraging. Although it is assumed that most of the world’s oil rich sites have already been identified, the fact is that Africa remains largely unexplored. What success has already been found there only hints at the huge continent’s remaining potential.
Namibia itself is roughly the size of Venezuela, but without the heavy vegetation. Namibia is mostly sunny and dry, encouraging to exploration. The country is fairly sparsely populated, with strong ties to South Africa, and has a significant mining sector supported by a stable government. The Owambo Basin, the location of the concession, is huge, extending into Angola, a major oil producing country for Africa, and is said to have all of the key ingredients for becoming a major oil province. The fact that exploration and operations will be onshore significantly reduces costs.
For additional information on Duma Energy, visit the company’s website at www.DUMA.com
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