Tomahawk, WI 7/30/2013 (Basicsmedia) – As a result of the completion of the acquisition, NEI became a wholly owned subsidiary of Duma. NEI holds the rights to 39% working interest (43.33% cost responsibility) in an onshore petroleum concession located in Namibia, which measures nearly 5.3 million acres covered by Petroleum Exploration License issued by the Namibian Ministry of Mines and Energy.

3

NASDAQ Listing

Duma Energy Corp. is a growing U.S.-based oil and gas exploration and production company, and announced it submitted its application to be listed on the NASDAQ stock exchange. Once the final approval from NASDAQ is received regarding the company’s listing, management expects to retain the current trading symbol “DUMA”.

Industry Position

Duma Energy is a very small oil and gas company as compared to several other large dominating multinational companies in the industry. The company’s market capitalization is $30.28 Million.  The oil and gas industry is highly competitive at all the levels as well as with other sources of energy such as coal and synthetic fuel. Duma is still not successful in controlling its selling prices as determined by international markets.

Concerns

  1. Duma is currently operating on 100% equity finance and to develop current and future oil and gas leases the company should look forward to obtain additional financing.
  2. It has been noticed that drilling and production of oil and gas usually causes environmental damages resulting in expensive remediation activities. As a result, the company should be prepared for such litigations.
  3. Falling oil and gas prices in local markets may result in operating losses. The company’ needs to develop adequate arrangements and necessary infrastructure to transport oil and gas from remote areas where they are explored and produced to the markets.
  4. A major concern lies in the political events occurring in developing countries, which may lead to loss of lease ownership and the inefficiency to recapture prior expenses.
  5. Changes in regulation and legislation in the oil and gas industry may have adverse effects to small companies, which could cause the company to operate at a loss.
  6. In Texas, the company owns four fields that are located in areas that are frequently hit by hurricanes.

Conclusion

The company has a strong asset base and has been acquiring oil and gas properties since last year. The company still has unevaluated properties situated in the USA and Namibia, Africa. It is gearing up to compete with the multinational companies. The company’s intension of getting listed on NASDAQ brings in a strong prospect for its stock trades to trade in high volumes and prices.

Investors should keep an eye out and must wait and watch on company’s prospects for growth. With the positive aspects mentioned above, the company’s stock can prove to be a long term buy.

 

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