Duma Energy Corp. has announced it has signed a Definitive Stock Exchange Agreement with Hydrocarb Corporation whereby 100% of all the outstanding stock of Hydrocarb will be acquired by Duma.
Duma’s board of directors approved the acquisition and the agreement was signed on November 27, 2013 after receiving an independent oil resource estimate for its oil and gas concession in the Owambo Basin adjacent to Angola in northern Namibia.
The merger of the two companies will give the combined entity onshore and offshore oil and gas production in the United States as well as a 5.3 million acre exploration concession in northern Namibia, ongoing active negotiations with several African countries in the prolific East African Rift play, and a comprehensive oil field services license approved by the Supreme Petroleum Council of the UAE.
Pasquale Scaturro, Duma’s CEO stated, “This acquisition, which is a major milestone for Duma, makes us an exploration and production company with tremendous upside potential. We’re very enthusiastic about our Namibia concession. The Netherland, Sewell & Associates report released yesterday, estimating 1.1 billion barrels of unrisked in-place potential reserves, means that our combined company is currently trading at a tremendous value per barrel of oil.”
The combined company will be renamed Hydrocarb Energy Corporation, with an interim name of Duma Hydrocarb, and a new stock ticker pending approval from the SEC. Form 8-K, including the definitive agreement, was filed with the SEC on Tuesday, December 3, 2013.[twitter-follow screen_name=’oilnewskenya’]