DualEx Energy International Inc. (DualEx) is pleased to announce that Martin & Brusset Associates (“M&B”), an independent qualified reserves evaluator and auditor, has completed an initial evaluation of undiscovered resource potential of the “Bouhajla Northeast” and “Bouhajla Southeast” prospects, the second and third prospects identified on the Company’s Bouhajla Exploration Permit onshore central Tunisia (the “Bouhajla Permit”).
The evaluation is entitled “Evaluation of Undiscovered Resource Potential, Bouhajla NE and SE Anomalies, East Central Tunisia, Effective March 1, 2011” and was completed in compliance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities.
In June, 2010 M&B prepared a similar evaluation of the Company’s Bouhajla North prospect. That evaluation is entitled “Evaluation of Undiscovered Resource Potential of North Bouhajla Anomaly East Central Tunisia Effective May 31, 2010” and was also completed in compliance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities.
M&B has estimated an unrisked “Best Estimate” of over one billion barrels of Petroleum Initially in Place for the three Bouhajla prospects. A summary of the estimated Petroleum Initially in Place is provided in the Reports and set out in the following table.
Garry Hides, DualEx’s President and CEO, commented, “The M&B independent assessments further support the Company’s technical efforts and management’s view that the Bouhajla Permit holds significant potential. The Company’s current operational focus remains Bouhajla North, as it is a close analogue to the producing Sidi el Kilani field immediately east of the Bouhajla Permit. DualEx is in the process of evaluating contractor bids for a proposed 3D seismic survey at Bouhajla North, which will be recorded in advance of selecting our first drilling location.”
The Bouhajla Production Sharing Contract (“PSC”) and associated documents 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 Company’s wholly-owned subsidiary, DualEx Tunisia Inc., has a 100% Contractor Interest in the Bouhajla Permit, which encompasses 416 square kilometres (105,000 acres), and is located onshore in the Pelagian Basin of east central Tunisia, immediately west of the Sidi el Kilani field, which has produced to date approximately 48 million barrels of light oil from the Abiod formation.
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.