DualEx Energy International Inc. announces 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 North' prospect, the first prospect identified on the Company's Bouhajla Exploration Permit onshore central Tunisia (the 'Bouhajla Permit'). M&B has estimated an unrisked 'Best Estimate' of 82,829,000 barrels of Petroleum Initially in Place as of May 31, 2010.
Garry Hides, DualEx's President and CEO, commented:
'The M&B independent assessment supports management's views that the Bouhajla Permit holds significant potential. Along with the Bouhajla North prospect, we have identified several additional leads and opportunities on the Bouhajla Permit, in multiple formations. The next step in the exploration effort will involve shooting a 3D seismic survey at Bouhajla North, in order to select a drilling location. Subject to Ministry and ETAP approval, we anticipate the seismic getting underway in the fourth quarter of this year.'
The Bouhajla Production Sharing Contract ('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 Company's wholly-owned subsidiary, DualEx Tunisia Inc., has a 100% Contractor Interest in the Bouhajla Permit with a work commitment consisting of a minimum of 100 kilometres of 2D seismic and one exploration well during the initial term. The Bouhajla Permit encompasses 416 square kilometres (105,000 acres), and is located onshore in the Pelagian Basin of east central Tunisia. The Bouhajla 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 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 very 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.
No proved, probable or possible reserves have been assigned to the Bouhajla North prospect 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.