DualEx Annouces Joint Venture on Bouhajla Permit


CALGARY, Nov. 4, 2011 /CNW/ - DualEx Energy International Inc. ("DualEx, or "the Company") (TSX-V: "DXE") is pleased to announce that its wholly owned subsidiary, DualEx Tunisia Inc., has entered into a farmout agreement with a Canadian based private oil and gas exploration company (the "Farmee") with respect to its Bouhajla Exploration Permit (the "Permit"), onshore Tunisia. The Farmee will fund the first US $7,250,000 (the "Earning Funds") towards the initial exploration program on the Permit, consisting of a 55 km2 3D seismic survey and an exploration well on the Bouhajla North Prospect, in exchange for 47.5% of the contractor share in the Bouhajla Production Sharing Contract ("PSC"), subject to the approval of the Tunisian authorities and to the assignment provisions contained in the PSC. DualEx will remain the operator of the project, with 52.5% of the contractor share. The Farmee has also paid DualEx US $450,000, being a pro-rata share of DualEx's costs incurred to date on the project. The first tranche of the Earning Funds will be paid into escrow by November 30, 2011, and the balance within sixty days of completion of the Bouhajla North 3D seismic survey.

DualEx's President & CEO, Garry Hides, commented, "We are very pleased to have entered into this joint venture with regard to the Bouhajla project, and look forward to the commencement of field activities once the required approvals and local consents are received."

The Bouhajla PSC and associated documents were executed in Tunis on September 11, 2009, and were ratified and made effective on April 30, 2010.  The initial term of the PSC is three years, with two optional renewal periods of three years each. The Bouhajla Permit encompasses 416 square kilometres (105,000 acres), and is located onshore in the Pelagian Basin of east central Tunisia. The Permit lies immediately west of the Sidi el Kilani field, which has produced to date approximately 48 million barrels of light oil from the Abiod formation, which is the primary exploration target of DualEx's initial program. At Sidi el Kilani the Abiod reservoir consists of a fractured chalk, locally dolomitized in association with wrench tectonics. Reservoirs of this type tend to have high recovery factors accompanied by high individual well productivity rates. The Sidi El Kilani field occupies a pop-up structural inversion and a similar structure has been identified on seismic previously recorded over the Bouhajla North prospect area. In addition to the Bouhajla North prospect, DualEx has mapped two other significant prospects on the Permit, Bouhajla Northeast and Bouhajla Southeast.

As previously announced on June 22, 2010, Martin & Brusset Associates ("M&B"), an independent qualified reserves evaluator and auditor, has completed an initial evaluation of undiscovered resource potential of the Bouhajla North prospect, the first prospect to be explored by the joint venture on the Permit. The evaluation is entitled "Evaluation of Undiscovered Resource Potential of North Bouhajla Anomaly East Central Tunisia Effective May 31, 2010" and was completed in compliance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.  M&B's Best(4) case estimate of Petroleum Initially in Place(1)(2)(6)(7) in the Bouhajla North Prospect is 82,829,000 barrels, with High(5) and Low(3) case estimates being 129,090,000 and 49,441,000 respectively.

No proved, probable or possible reserves have been assigned to the Bouhajla Permit at this time.  Undiscovered resources are those quantities of oil and gas estimated on a given date to be contained in accumulations yet to be discovered. There is no certainty that any portion of the undiscovered resources will be discovered and that, if discovered, may not be economically viable or technically feasible to produce.

DualEx Energy International Inc. is an oil and gas exploration and production company with operations in the greater Mediterranean area. DualEx's common shares trade on the TSX Venture Exchange under the symbol "DXE".


(1)  Petroleum Initially in Place is defined by COGEH, as that quantity of petroleum that is estimated to exist originally in naturally occurring accumulations. It includes that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered (equivalent to "total resources").
(2) These are the gross volumes estimated for the Bouhajla North Prospect located on the Bouhajla Permit, assuming a successful discovery and without any adjustments for working interest or encumbrances.
(3) Low Estimate is considered to be a conservative estimate of the quantity of Petroleum Initially in Place. It is likely that the estimated quantity will be equaled or exceeded.
(4) Best Estimate is considered to be the best estimate of the quantity of Petroleum Initially in Place. It is equally likely that the estimated quantity of Petroleum Initially in Place will be greater than or less than the actual quantity discovered.
(5) High Estimate is considered to be an optimistic estimate of Petroleum Initially in Place. It is unlikely that the estimated quantity of Petroleum Initially in Place will be equaled or exceeded.
(6) Undiscovered Petroleum Initially in Place was estimated for the Bouhajla North Prospect, including the Cretaceous Abiod and the Eocene El Gueria formations, which estimates were combined in the above estimates.
(7) The resource estimate was prepared in accordance NI 51-101 and the COGE Handbook.

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "schedule", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward looking statements and information concerning DualEx's future operations and the undiscovered resource potential of DualEx's Bouhajla North prospect. The forward-looking statements and information are based on certain key expectations and assumptions made by DualEx, including expectations and assumptions concerning equipment and crew availability, and joint venture partner financial capability. Although DualEx believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because DualEx can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause DualEx's actual results and experience to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to, reservoir performance, labour, equipment and material costs, access to capital markets, interest and currency exchange rates, and political and economic conditions.  Additional information on these and other factors is available in continuous disclosure materials filed by DualEx with Canadian securities regulators.  Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. DualEx undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

This press release is reproduced on DualEx's website at www.dualexen.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

SOURCE DualEx Energy International Inc.

For further information:

For this and other information about DualEx Energy International Inc., please visit the website or contact Garry Hides (President & CEO) at 403-265-8011 ext. 223.

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DualEx Energy International Inc.

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