Baraka, Statoil, PetroFrontier Settle Dispute on 2 Georgina Basin Permits
Baraka Energy & Resources Ltd. reported Monday that Statoil Australia Theta B.V., PetroFrontier Corp. and the company have agreed to settle the court action -- relating to permits EP127 and EP128 in Georgina Basin in Australia's Northern Territory -- referred to in Bakara's announcement March 20 and referred to in its announcement of June 2.
The agreement provides for full and final settlement of the action with the effect that:
- Baraka's claim that the 2014 work program and budget is invalid will be withdrawn
- The claim by Statoil and PetroFrontier that Baraka is in default under each Joint Operating Agreement (JOA) as a result of Baraka not paying cash calls in respect of the 2014 work program and budget will be withdrawn
- Statoil and PetroFrontier will agree that Baraka has elected not to contribute to the 2014 work program and budget
- Baraka's participating interest in each joint venture and each permit EP127 and EP128 will be diluted as a result of its non contribution, based on the expenditures and inputs as calculated at the time of dilution. The final extent of dilution will not be known until after the work program expenditures are incurred and calculations carried out, at which time a further announcement will be made
- As a result of this agreement Baraka will be entitled to receive data and information relating to the joint operations for the 2014 work program and budget
Subject to execution of a deed of settlement and release reflecting those terms, the court action will be dismissed on the basis that each party pays its own costs.
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Company: Baraka Energy & Resources Ltd. more info
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