Baraka Signs MOU for Farm-in to Colombian Oilfield
Baraka Petroleum Limited has signed an exclusive non-binding MOU with TC Oil & Services, a privately owned Colombian Oil Company, domiciled in Bogota, Colombia. This MOU is subject to legal due diligence and finance and covers the principal terms of the Sales and Purchase Agreement. The Company is confident of concluding the Sales and Purchase Agreement imminently at which time details surrounding this arrangement will be released.
The Sales and Purchase Agreement will provide Baraka with a minor participating interest of the current and future production from TC Oil's interest in the La Punta oilfield (currently 1400 bbls/d on a 100% basis) as well as a participating interest in the gas liquids stripping business.
In addition, Baraka will also have a stake in the surrounding prospective block where the La Punta oilfield is located.
Baraka's investment includes entry fee, 3D seismic, to be completed before December 2007, and the drilling of one further development well with additional deeper exploration targets in the La Punta oilfield in early 2008. An additional contingent development well will be drilled if required.
While this investment can be funded out of existing cash reserves Baraka is reviewing a number of funding options in the short term.
- Baraka, GBE Join Forces to Drill in Georgina Basin (Apr 09)
- Baraka Plans to Increase Activity on Chicuaco Block (Feb 26)
- Seismic Work Complete on La Punta Block in Colombia (Jan 08)