Baraka Energy & Resources and JV partner PetroFrontier spud oil shale play in Georgina Basin

Baraka Energy & Resources (ASX: BKP, RBD: GR) has reported that joint venture partner Petrofrontier Corp (TSX-V: PFC) has spudded the MacIntyre-2 well in the Northern Territory.

PetroFrontier is believed to be the first company to introduce open hole horizontal and multi-stage fracing technologies to unlock unconventional oil potential in Australia.

The drilling of EP127 well has been highly anticipated by investors as well as Baraka, as the company has a 25% undivided working interest.

The objective is to drill the well to 500 metres horizontally into the shale and “hot shale” Basel Arthur Creek Shale, which commences at a depth of approximately 770 metres vertical depth.

Petrofrontier then intends to frac and complete the well using multi-stage open hole techniques.

Baraka also retains an undivided 75% working interest in about 75 square kilometres around the Elkedra-7 well on EP127, where previous drilling has indicated oil shows that could lead to a discovery.

Petrofrontier has also recently completed a well at Baldwin-2 in the Georgina Basin on EP103 only 60 kilometres away.

When final results are released from MacIntyre-2, the completions crew will subsequently return to Baldwin-2 to conduct a similar program there.

It has always been PetroFrontier's strategy to frac MacIntyre-2 and Baldwin-2 back to back in order maximize cost controls.

PetroFrontier intends to use Schlumberger, the Australian representatives of Packers Plus, to run the multistage open hole completion string and conduct the fracture stimulation program.

These technologies have been widely successful in unlocking North American unconventional oil reservoirs such as the Bakken formation, and Baraka and PetroFrontier expect them to assist in establishing commercial production.


Ryder Scott Report on Potential Oil Resource Estimates

Consultants Ryder Scott Company Petroleum have written a report entitled Evaluation of the Hydrocarbon Resource Potential Pertaining to Certain Acreage Interests in the Southern Georgina Basin.

Ryder Scott Petroleum Consultants evaluated Baraka’s concessions in the Georgina Basin and estimated the lands to hold a prospective resource potential of 76.65 billion barrels of oil (unrisked, P50 estimate).

Ryder Scott estimated The Arthur Creek “Hot Shale” potential resource at 7.53 billion barrels and is the primary focus for PetroFrontier and Baraka.


Frankfurt Exchange

Meanwhile, Baraka has also announced that its application to list on the Frankfurt Exchange (FSE) has been approved and is now trading under the code (RBD: GR).

Baraka said that having initially assessed the benefits that could flow to the company and shareholders from a greater exposure to large cash rich Fund Managers and Institutions in Europe, the company carried out serious dialogue and costing to analyse the cost-reward benefits of the listing.

The company believes that it would appeal to the European investors because of the strength of the Australian currency, and the potential success of Baraka’s oil shale project in the Northern Territory, as well as its cash reserves, nil liabilities, strong management and possible acquisition/joint venture of other assets.

Baraka intends to commence a marketing and promotional program throughout Europe to educate the European investors on Baraka’s financial position and project potential, possibly with a follow up road show to selected interested Institutions either this year or in the New Year.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/21379/baraka-energy-resources-and-jv-partner-petrofrontier-spud-oil-shale-play-in-georgina-basin-21379.html