STATOIL’S Australian arm will not pursue any further activity in two permits in the Northern Territory’s Georgina basin, project partner Baraka Energy and Resources has announced.

In an announcement to the Australian Securities Exchange, Baraka said it had been informed by Statoil management that the company was withdrawing from permits EP127 and EP128.

The announcement came after drilling and testing on the permits had returned results Statoil said were “disappointing.”

Baraka said it was seeking confirmation about the role Statoil planned to play in these permits, and the neighbouring EP103 and EP104 permits, in which Canadian group Petrofrontier also holds a stake.

Baraka said it had been approached by a Canadian company interested in pursuing exploration on the conventional targets in EP127. Further exploration of these permits will be subject to discussions with the joint venture partners and the regulator, including the offer of exploration from the Canadian company.

The minimum expenditures required on the EP127 and EP128 permits had been met for 2015, Baraka said.