|Duma Energy Corp. (DUMA) Success in Texas is Key Part of Overall Strategy|
Although Duma Energy has oil and gas interests in Texas, Louisiana, Illinois, and is even pursuing an opportunity in Africa to acquire a private corporation with a significant interest in an African concession totaling approximately 6 million acres, the company’s key operations are located in the shallow bays off the Gulf of Mexico just east of Houston, Texas.
In early 2011, the company purchased 4 existing off-shore fields in Galveston Bay and Trinity Bay, most of which were originally developed and the facilities built by Exxon. Production operations are focused on the Frio interval, the most prolific in the region, and the fields are currently receiving a full geological and engineering analysis to determine future projects. This includes reworks, recompletions, plugging, offsets, and potential new drilling locations. Recently a new well was drilled in the Fishers Reef Field, in Trinity Bay, and is currently awaiting completion. Duma also operates several offshore production and processing platforms, as well as pipelines that carry the produced gas and liquids to shore-based production and processing facilities where they are either disposed of or sold. Production has increased dramatically, and will continue to expand, following a well thought out developmental timeline.
Duma believes that oil is currently (and historically) a compelling investment opportunity with a unique set of macroeconomic drivers. The company’s success in the above projects is a direct result of this, in addition to the key elements of their operational and growth strategy, and the advantages they feel they have in the industry.
• An oil company that invests for strong financial returns, not solely for barrels of oil
• A company not bound to any geographical location or operational strategy
• A strategy where risk is evaluated on a broad basis, including operational, financial, and industrial
• The use of only industry standard and time-tested technologies
• The careful avoidance of unproven “resource plays” heavily dependent upon high commodity prices
• A philosophy of letting others risk their money first and learning from their mistakes
In addition, the company’s CEO, Jeremy Driver, has personally invested more than 25% of the company’s capital since its inception. The CEO and other insiders have together invested more than 75%, and the CEO has continued to buy in the open market after initial investments. As a result, the interests of shareholders and management are heavily aligned.
For additional information, visit the company’s website at www.DUMA.com
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