Duma Energy Corp. will acquire Hydrocarb Energy Corporation, the companies announced Wednesday.
The companies signed a letter of intent in which Duma will buy all of Houston-based Hydrocarb’s outstanding stock, according to a press release.
"Hydrocarb's wealth of experience in oilfield development and high-potential international exploration, combined with Duma's proven domestic oil and gas assets creates a powerful alliance that will greatly increase shareholder value," stated the company’s CEO Jeremy G. Driver.
Last year, Duma acquired a 39 percent working interest in Hydrocarb’s 5.3 million acre Owambo Basin concession in northern Namibia. In return, Duma granted Hydrocarb an estimated $44 million in Duma stock based upon the value of the shares in September 2012 when the legal paperwork was filed.
As part of the deal, Hydrocarb will acquire a high-resolution aerial gravity magnetics survey over the entire concession. The concession extends from the Etosha Pan to the Angola border and includes onshore Blocks 1714A, 1715, 1814A and 1815A.
“Hydrocarb is eager to begin this phase of our work program as previous field studies indicate the existence of an active petroleum system in the Owambo Basin. We hope this is the next step in the opening of Africa’s newest petroleum province,” stated Pasquale Scaturro, president and COO of Hydrocarb, in a press release.
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