Rick Wilkinson
OGJ Correspondent
MELBOURNE, Nov. 10 -- Baraka Petroleum Ltd., Perth, has farmed out interests in its five exploration permits in the Taoudeni basin in northern Mali to subsidiaries of Eni SPA of Italy and Sonatrach of Algeria.
ENI Mali BV will earn a 50% participating interest and assume operatorship of all five blocks. Further, SIPEX, the international subsidiary of Sonatrach, will earn a 25% participating interest in the same five blocks. Baraka will retain a 25% participating interest in the region.
In return Baraka will recoup all past exploration costs associated with the first 2 years of the permit term, including a recent aerial survey. The company will also be carried for a significant part of the Year 3 expenditure (to a total of $19 million), which begins in April 2007.
