Georgina Basin Energy takes a Farmout from Baraka Petroleum

HOUSTON, Apr. 7 — Georgina Basin Energy Pty. Ltd., a subsidiary of Australia Energy Corp., took a farmout from Baraka Petroleum Ltd. on the EP 127 and EP 128 permits in the Georgina basin in Australia’s Northern Territory.

GBE will fund Baraka’s exploration obligations up to completion of a well on each permit to earn a 50% interest in both permits, excluding the area with 5 km of the Elkedra-7 well.

Baraka was previously earning a 75% interest in the permits from Northern Territory Oil Ltd. and believes that the permits are prospective for hydrocarbons due to previous oil shows and flows of gas in other wells in the basin, the high organic content Arthur Creek source rocks, and the good quality reservoir rocks.

Baraka will retain all rights to hydrocarbons in the 75 sq km area surrounding the Elkedra-7 well where previous drilling has indicated oil shows.

Georgina Basin Energy also agreed to prepare a resource evaluation report on EP 127 and EP 128 within 4 months; and spud the first well on either permit by December 2010. Georgina Basin Energy will become operator of both EP 127 and EP 128, subject to all necessary consents.


Source: Ogj,April 8,2010;