DualEx Files 2010 Second Quarter Results

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CALGARY, Aug. 19 /CNW/ - DualEx Energy International Inc. ("DualEx" or the "Company") (DXE, TSX-V) today filed with Canadian securities authorities its Second Quarter Financial Statements and Management's Discussion and Analysis for the period ending June 30, 2010. Copies of the filed documents may be obtained through www.sedar.com, DualEx's website www.dualexen.com or by emailing DualEx at [email protected].

    
                                   Summary
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                                     Three months ended   Three months ended
                                        June 30, 2010       March 31, 2010
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    Petroleum and natural
     gas production (mcfe/d)                 728                   81
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    Sales price per MCFe
      Hungary                              $10.75                $9.96
      North America                         $3.87                $4.96
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    Petroleum and natural gas sales       $667,205              $40,402
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    Funds from operations                 $173,489             $(500,114)
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    Net Loss                              $263,205             $1,798,813
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During the second quarter, production in Hungary recommenced from the PEN-105 well (in late May) and the PEN-101A well (in June), generating sales of $642,091. In July the Company's share of Hungary production from both wells is estimated to be 1300 mcfe/day. Revenue from this production is estimated to be $430,000 for the month, with corresponding cashflow of approximately $300,000. Given the much higher price the Company receives for its natural gas production in Hungary (and resulting netback), current production levels generate significantly higher cash flows than that which would be realized from an equivalent natural gas production level in Western Canada.

In Tunisia, DualEx continues to progress its exploration program on the Bouhajla Permit. As announced on June 22, 2010, Martin & Brusset Associates, an independent qualified reserves evaluator and auditor, completed an initial evaluation of undiscovered resource potential of the "Bouhajla North" prospect, the first prospect identified on the Company's Bouhajla Exploration Permit onshore central Tunisia. The evaluation is entitled "Evaluation of Undiscovered Resource Potential of North Bouhajla Anomaly, East Central Tunisia Effective May 31, 2010" (the "Report") and was completed in compliance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. Please see the Company's website to view this Report. In addition to the Bouhajla North prospect, the Company has identified several additional leads and opportunities, in multiple formations, on the Bouhajla Permit, all targeting light oil.

Garry Hides, DualEx President & CEO commented, "With positive working capital, no debt, low corporate overhead and anticipated positive monthly funds from operations, the Company is on solid ground. This will allow us to move forward with our planned program, including the highly prospective Bouhajla project in Tunisia."

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".

The Company uses the term "funds from operations" which is not a recognized measure under Canadian generally accepted accounting principles. Management uses "funds 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 from operations has been defined by the Company as "cash flow from operating activities excluding the change in non-cash working capital related to operating activities".

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.

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 prospects. 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.

Glossary:

"Mcf/day": thousand cubic feet per day.

"Mcfe/day" thousand cubic feet equivalent per day.

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.

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For further information: This press release is reproduced on DualEx's website at www.dualexen.com. 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.