Tomahawk, WI 7/30/2013 (Basicsmedia) – On April 12, 2005, the company was incorporated under the laws of the State of Nevada under the name “Carlin Gold Corporation”, which was changed to “Nevada Gold Corporation” on July 19, 2005. Further, on October 18, 2005, the company’s name was changed to Gulf States Energy, Inc. to demonstrate the company’s new direction. Thereafter it changed its name to “Strategic American Oil Corporation” on September 5, 2006, which was then finally changed to Duma Energy Corp. (DUMA.OB) effective April 4, 2012.

Duma Energy holds 100% of the issued and outstanding share capital of Penasco Petroleum Inc., a Nevada corporation, Galveston Bay Energy, LLC, a Texas Corporation and SPE Navigation I, a Nevada LLC.

The company also owns properties and royalty interest related to oil and natural gas production in Texas and Illinois. It also has a 39% working interest in part of the Owambo Basin in Northern Namibia.

Texas

The company owns more than 100 wells in Texas but not all are oil or gas producing wells. 27 of 30 wells are in Galveston Bay and mostly in deep shallow water. The other areas include the Janssen Lease and the Welder Lease.

  • Galveston Bay Energy (GBE)

Galveston Bay is wholly owned by Duma Energy and has the potential of producing very high quality oil. It is sold at a premium to WTI Cushing crude. Through its subsidiary GBE, Duma owns four fields in Galveston Bay. The company has intentions to enhance the infrastructure of the existing field and develop the wells to increase production to further increase cash flows. The fields have successfully posted positive cash flows and Duma has intentions to open up a number of shut-in wells in this bay. The southernmost field, Bolivar, is no longer a core area of focus as it lacks sufficient cash flow and the company is planning to accelerate the development of other three fields by divesting a 25% working interest of this field.

  • The Welder Lease (Barge Canal), Texas

The Welder Lease was purchased from OPEX Energy LLC with an effective date of August 1, 2006 in November of 2006 the lease. It was purchased in with a salt water disposal and two working wells and the lease is about 81 acres and located in Calhoun County, TX. The previous agreement was 100% working interest along with 72.5% net revenue interest less 10% payout. It was was acquired by Duma on January 1, 2010 which now owns 100% interest. The third well, Welder 5 was acquired in October 2011.

  • Janssen Lease, Texas

Duma acquired approximately 140 acres of oil and gas from Rockwell Energy by purchasing the Janseen Lease in Karnes County Texas. The lease was acquired with 25% working interest and 18.75% net revenue interest. Duma’s attempt to open up the wells at Janseen was unsuccessful and the lease was renegotiated with the mineral owners. The working interest was later farmed out to ETG Energy Resources and Duma Energy now owns only 3% working interest. During December 2012, Duma sold its 3% working interest for $2,500 cash proceeds in conjunction with the sale.

Illinois

Duma entered into several oil and gas leases, measuring 237 acres, in The Markham City prospect of Illinois in Jefferson. The Field is currently producing small amounts of oil under the pilot waterflood program and data clearly indicates the expansion of the waterflood program. Duma retained 10% of working interest and hived out its interest to Core Minerals Management II, LLC in January 2011. If Core manages to achieve an earning threshold of $1.35 million, Duma’s holding will increase to 25%.

On August 7, 2012, Duma entered into a Share Exchange Agreement, which closed on September 6, 2012. Under the Share Exchange Agreement, Duma purchased Namibia Exploration, Inc., a corporation organized under the laws of the state of Nevada for the issuance of up to 24,900,000 shares of their common stock as described below.

  1. Duma issued 2,490,000 shares of common stock in September 2012 at the closing.
  2. 2,490,000 shares will be issued when and if Duma’s 10-day volume-weighted average market capitalization reaches $82,000,000;
  3. 7,470,000 shares will be issued when and if Duma’s 10-day volume-weighted average market capitalization reaches $196,000,000; and
  4. Finally, 12,450,000 shares will be issued when and if Duma’s 10-day volume-weighted average market capitalization reaches $434,000,000.
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