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Baraka Energy and Resources to increase key Georgina Basin acreage

Last updated: 15:30 10 Mar 2015 AEDT, First published: 14:30 10 Mar 2015 AEDT

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Baraka Energy and Resources (ASX:BKP) is moving to increase its oil and gas acreage in the Georgina Basin, Northern Territory, after Petrofrontier (TSX-V:PFC) and Statoil have elected to withdraw from key permits.

The company has applied for the renewal of Exploration Permit EP128 as the 100% holder. EP 128 expires on 13 June 2015 with all commitments having been met to that date.

It also expects to apply to renew for 100% of EP 127, which expires on 13 December 2015.

Of note, Baraka has been approached by a Canadian group that has for some time expressed an interest in pursuing the conventional targets within these permits.

This will be pursued if both permits are renewed.

Canadian listed Petrofrontier (TSX-V:PFC) and Statoil withdrew from the permits as a result of not discovering hydrocarbons of sufficient quantity, quality or sufficient porosity from the limited wells drilled and completed as well as their own reasons.

McIntyre 2H well, initially drilled by Petrofrontier on EP127, indicated high gas readings during drilling, however after fraccing this was unable to be investigated further due to the well producing excessive water and hydrogen sulphide (H2S), and was suspended for safety reasons.

Statoil was predominantly seeking a large unconventional shale basin similar to those basins in USA/Canada, in an area representing some 13 million acres, including the 2 permits controlled by Petrofrontier and Statoil.

Only 5 wells were drilled in the eastern area of all the permits, and although they were unsuccessful, this leaves an enormous area yet to be explored.

EP127 and EP128 cover 8 million acres and are believed to host a number of conventional oil and gas targets.



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