AUSTRALIAN based Baraka Energy & Resources is hoping to renew and obtain 100 per cent interest in exploration permit EP127 in the Georgina basin, located in the Northern Territory, the company said in an announcement.
Exploration permit EP127 is the most southerly of the two permits in which Baraka has an interest.
With the support of Petrofrontier Corp and Statoil Australia Theta B.V by way of supporting documentation, the company has lodged its application for the permit renewal.
Both Petrofrontier and Statoil elected to withdraw from both permits, as a result of not discovering hydrocarbons of sufficient quantity, quality or porosity from the wells drilled and completed, Baraka said. Statoil was seeking a large unconventional shale basin similar to basins in America and Canada.
Five wells were drilled in the eastern area of the permits, although they were unsuccessful, Baraka said this leaves a large area yet to be explored.
Baraka said EP127 is viewed to be the most prospective of the two permits.
There are a number of conventional oil and gas targets throughout the basin, according to independent oil and gas consultant reports from RISC and Ryder Scott.
Baraka has appointed RISC as technical consultants to reassess data on the permits and prepare proposed exploration programs of the permits if and when they are renewed in the company’s name.
Timing of the approval period has not been confirmed but the licence does not expire until 13 December 2015 and all commitments have been met to that date.
Baraka’s application for renewal of EP128 in its own name is continuing and the NT department of mines and energy has asked the company to resubmit a map and application with a relinquishment of a minimum of 50 per cent of the previous permit area as is normall required.
The company has attempted to retain the full permit area, this has since been done with supporting documentation of Baraka’s technical and financial capabilities, the company said.
Baraka has been approached by a Canadian group that has expressed an interest in pursuing the conventional targets within Baraka’s permits and the company is expected to pursue that interest if both permits are renewed, it said..
It has also has had early communications with another listed oil and gas company regarding the permits and it will make the relevant announcements if the discussions progress further.
Baraka will also seek farm in partners and continue to assess a number of other projects and ventures, including its current assets and seek to create cash generating opportunities, the company said.