Texalta reported that Baraka Petroleum has entered into a Farm-out Agreement with Texalta's joint venture partner, Georgina Basin Energy. Under the Baraka Agreement GBE will drill a test well on each of permits EP127 and EP128 in the Georgina Basin to earn a 50 percent working interest in each permit, with the first well scheduled to commence by December 2010. The two permits originally granted to Northern Territory Oil Limited are located immediately north and south of Texalta's permits EP103 and EP104.
Prospective reservoirs expected to be encountered by the test wells on EP127 and EP128 are the Early Ordovician Kelly Creek, Eurowie Sandstone, Chabalowe, Hagen, Steamboat Sandstone, Upper Arthur Creek, Thorntonia Limestone and Red Heart Dolostone.
Under the Farmout Agreement dated December 21, 2007 between Texalta Australia Pty. Ltd. and GBE, each will hold a 50 percent working interest once the earning phase is completed in EP103 and EP104 in the Georgina Basin. All tenders for the year three seismic program have been received. Subsequent to agreement on the final program, budget, the required clearances and approvals from the NT Government and Central Land Council, the seismic program should commence in June 2010.
President and CEO of Texalta, William H. Nixon has said "We at Texalta are very pleased to see more operations underway in the Georgina Basin and will follow the work as it progresses. Any discovery on the neighboring permits could certainly help to establish more efficient operations for all players in the region."
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