Baraka Energy & Resources Ltd. says that Statoil Australia Theta B.V. (Statoil) has informed Baraka that it has concluded the drilling and testing campaign on the Company’s permits, EP127 and EP128 in the Georgina Basin, Northern Territory, Australia, and based on the disappointing results, Statoil has decided to withdraw from any further activity on these permits.
Baraka expect to receive formal notice from Statoil regarding this in the very near future. Baraka has not yet been informed by Petrofrontier Corp (Petrofrontier) or Statoil as to whether Statoil also intends to withdraw from any activity on Petrofrontier’s adjoining permits EP103 and EP104 and will pursue this with Petrofrontier immediately.
It is unclear as to whether Statoil will continue as Operator of Baraka’s permits and indeed of the permits EP103 and EP104 adjoining Baraka’s permits, or whether Petrofrontier will once again become Operator of all the permits. Baraka will be seeking clarification of all of these issues in the immediate future and will keep the market informed.