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DUMA - Duma Energy Corp, Initiating coverage

By Ian Gilson, CFA

Duma Energy Corp (OTC BB:DUMA) is an oil and natural gas company that owns producing properties in Texas and Illinois. The company has a significant interest is leases under exploration in Namibia that exceed 5 million acres with an estimated billion bbls of reserves in just one structure.

The company is profitable and revenue is growing rapidly. Our fiscal year 2013 (July 31) estimates are $20 million in revenue and $0.22 a share in earnings. Fiscal 2014 estimates are $34 million and $0.53 a share. The P/E on 2014 earnings is 3.6.

We are initiating coverage with an outperform rating and a $5 price target.

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