/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, April 12, 2012 /CNW/ - DualEx Energy International Inc ("DualEx" or "the Company") is pleased to announce that the Tunisian Ministry of Industry and Energy's Comite Consultatif des Hydrocarbures has approved DualEx's application to expand the Bouhajla Permit, which is located onshore in northeast Tunisia. The area of the expansion represents an increase of 120 km2 or 29% of the area of the original Bouhajla Permit. In consideration for the increase, DualEx committed to the recording of a minimum 20 km2 of new 3D seismic.
"We have coveted this new acreage since our first involvement in the area, however the land was held by another operator and only recently became available," said DualEx President & CEO Garry Hides. "We view this as a very positive addition to our existing Bouhajla holdings and plan to move forward with several ideas regarding the exploration of these new lands."
The expansion area lies south of the Company's Bouhajla North prospect on which a 55 km2 3D seismic survey was recently completed. Processing and interpretation of that survey is currently under way. The permit expansion will be finalized upon publication in the official Government Gazette.
2011 Year End Results
The Company also announces that it has filed with Canadian securities authorities its 2011 Annual Consolidated Financial Statements and Management's Discussion and Analysis, along with its Annual Information Form dated April 10, 2012. Copies of the filed documents may be obtained by visiting www.sedar.com, DualEx's website www.dualexen.com or by emailing DualEx at [email protected]. The Company's Annual General Meeting of Shareholders is scheduled for 9:00 AM June 21, 2012 at the Metropolitan Conference Centre located at 333 - 4th Avenue SW, Calgary Alberta.
|Petroleum and natural gas production (mcfe/d)||725||768|
|Average price ($/mcfe)||$ 11.72||$ 10.34|
|Petroleum and natural gas sales||$ 3,099,883||$ 2,897,742|
|Funds flow from operations||503,062||686,174|
|Working capital at December 31||1,963,283||1,271,998|
The Company had average daily production of 725 thousand cubic feet equivalent ("mcfe") per day for the year, and realized an average price of $12.42 per mcfe for 2011 in Hungary ($15.57 per mcfe in the fourth quarter, 2011). The Company is currently drilling a sidetrack to the PEN-105 well, to access a second compartment on the structure, believed to be gas-bearing.
The Company generated funds flow from operations of $503,062 (2010 - $686,174) primarily due to its production in Hungary. The Company exited the year with no debt and $2.0 million in working capital.
In November 2011, the Company entered into a farmout agreement with a Canadian based oil and gas exploration company (the "Farmee") with respect to the Bouhajla Exploration Permit, onshore Tunisia. The Farmee has agreed to 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 data from the 3D survey (completed in March 2011) is currently being processed and interpreted, and based on those results the Company anticipates drilling the first exploration well on the Bouhajla North prospect in 2012. In this regard, the Company has retained Helia Consultants Ltd., of Calgary, to assist with well planning and logistics associated with the drilling of this first exploration well. Helia has been actively involved in Tunisia drilling activity for several years and currently provides services to other operators in the country.
The Company uses the term "funds flow from operations" which does not have a standardized meaning prescribed by International Financial Reporting Standards. Management uses "funds flow from operations" to analyze performance and considers it a key measure as it demonstrates the Company's ability to generate cash necessary to fund future capital investments. Funds flow from operations is defined by the Company as "cash flow from operating activities excluding the change in non-cash working capital related to operating activities and settlement of asset retirement obligation".
Where amounts are expressed on a thousand cubic feet equivalent (mcfe) basis, one barrel of oil has been converted at a ratio one barrel of oil to six thousand cubic feet. Mcfe's may be misleading, particularly if used in isolation. A mcfe conversion ratio of one barrel of oil to six thousand cubic feet is based on an energy equivalent conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
DualEx Energy International Inc. is an oil and gas exploration and production company with operations in Hungary and Tunisia. DualEx's common shares trade on the TSX Venture Exchange under the symbol "DXE".
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. 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.
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.
For further information:
Garry Hides, President & CEO
DualEx Energy International Inc.
200, 521 - 3rd Avenue SW
Calgary, Alberta, Canada T2P 3T3
Tel: (403) 265-8011 ext. 223
Investor Relations, The Equicom Group
300 - 5th Avenue SW, 10th Floor
Calgary, Alberta, Canada T2P 3C4
Tel: (403) 218-2833