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PERTH, Australia, Oct. 28 (UPI) -- An Australian oil exploration company has been awarded one of the largest collective permit awards in the oil and gas industry's history.

Perth-based oil explorer Baraka Mali Ventures Limited has signed production sharing agreements for five exploration permits in northwest Mali spanning a total of nearly 74,595 square miles (193,200 square kilometers). The permits, Baraka said, are 50 percent larger than the whole of England and one-third the size of Texas.

The five permits are for the Taoudeni Basin, part of a known petroleum province with several large oil and gas discoveries in Algeria and Libya.

The PSAs were granted by the Council of Ministers in Bamako Oct. 27.

The terms of the PSA were not disclosed.
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BKP is showing healthy consolidation around current levels....


Reverse white candle suggest more upwards movement by SP....


OBV shows steady accumulation by investors...


BKP keeping pace with HDR SP performance for past month, in lead up to HDR's upcoming Mauritanian exploration wells.....


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It will be interesting to see the top 20 shareholders, just to get an idea if there are any predators lurking on the share registry.


After all, Fusion Oil was taken over early by Sterling Oil in Dec 2003 before Chinguetti was fully appraised.


BKP has access to some highly sort after oil/gas tenements and could well be on a predators watch list as a relative cheap entry into North Africa oil plays.

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BKP Signs Farm Out Deal



Baraka Petroleum Limited (ASX: BKP) is pleased to announce that it has signed a farm-out agreement with CNPC International (CNPCI), the overseas ventures arm of ChinaÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s largest oil and gas company China National Petroleum Corporation (CNPC), for the CompanyÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s 100% owned coastal exploration block (Block 20) in MauritaniaÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s petrolific Coastal Basin.

Under the terms of the agreement, CNPCI will acquire a 65% operating interest in Block 20 by funding 100% of the exploration cost, up to US$8.6 million. This will cover a seismic acquisition program of the Herron structure and will substantially fund the drilling of the planned Herron-1 well. Baraka will retain a 35% interest in the block.

The agreement is subject to the formalities of receiving approval from the Mauritanian Minister of Mines and completion of the parliamentary process granting the tenement rights. Baraka expects the process to be completed in the current parliamentary session, scheduled to be finished in early July.

In announcing the agreement from Beijing, Baraka Petroleum Chairman Shane Doherty said, ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Baraka is pleased to be entering into such a significant agreement with a world leader in the exploration and development of oil and gas projects.ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“CNPC has proven technical skills and experience necessary to unlock the potential of Block 20 and we look forward to working with them to achieve this goal.

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“The agreement is in line with our corporate strategy of preserving our capital and maximising our exploration expenditure by entering into joint venture and farm-out agreements that are beneficial to the Company and its shareholders.ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ

Block 20 covers approximately 10,690kmÃÆâ€â„¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚² and is considered by the Company to be the most prospective part of the onshore area of the Mauritanian Coastal Basin. It is approximately 180km southeast of MauritaniaÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s first commercial oil discovery, Chinguetti, which is scheduled to produce first oil in 2006 with initial production expected to be 75,000 barrels a day. It is also approximately 200km south of the capital Nouakchott and close to potential gas markets in
Nouakchott and Dakar, the capital of the neighbouring nation Senegal, and other surrounding population centres on each side of the Senegal River.

The nearby Autruche-1 Well was drilled by Texaco in 1989 and encountered oil and gas shows below the Turonian Formation. TexacoÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s investigations ceased when the project was relinquished at the commencement of the Gulf War in 1991.

CNPCI have been looking to expand their presence in Mauritania and this Farm-Out agreement is a logical acquisition for them while allowing Baraka to retain a substantial interest in the prospective onshore Coastal Basin block.

CNPCI hold a PSC over Block 12, immediately to the north and adjoining Block 20, and as Operators of the combined area will be able to introduce economies of scale across both projects that will provide improved operational efficiencies.
In addition to exchanging seismic data held by Baraka over both Blocks, Baraka and CNPCI have been jointly negotiating with service providers to acquire a minimum of 100 km of seismic line in Block 20. The Company expects the joint venture to be in a position to drill an exploration well from second quarter 2006.
One of our more promising exploration leads in Block 20 is in fact a priority target identified by Texaco in 1991.

Commenting on the work program, BarakaÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s Chief Operating Officer, Dr Satyavan Reymond, said, ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“We are very pleased to be working with CNPCI to further our aim of finding the first commercial onshore oilfield in Mauritania.ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Our colleagues at CNPCI are intimately familiar with exploration in desert terrain like Mauritania, having found and produced oil from ChinaÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s north-west Xinjiang province and the Sudan.

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“We have established a solid working relationship where our CompanyÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s combined experience will benefit the whole Mauritanian exploration program and create further opportunities in other areas.

China National Petroleum Corporation (CNPC) is one of the world's leading integrated energy companies, whose business operations cover a broad spectrum of upstream and downstream activities, domestic marketing and international trade, technical services, and equipment manufacturing and supply.

CNPC serves as China 's largest producer and supplier of crude oil and natural gas, holding a dominant position in domestic petroleum production, processing, and marketing sectors. At the same time, CNPC is also a major producer and supplier of refined oil products and petrochemicals.

CNPC had Shareholders funds of 595.4 billion Yuan (US$72 billion), and its total assets are 913.7 billion Yuan (US$110.5 billion) at December 2004. It has 13 large and giant oil and gas field enterprises, 16 large scale refining and petrochemical companies, 19 marketing companies and a large group of R&D
units and technical service and mechanical manufacturing enterprise located in Northeast China, North China, Northwest China and Southwest China. CNPC has nearly 30 oil and gas exploration, development and production projects in the Middle East, North Africa, Middle Asia, Russia, and South America.


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More info on Herron prospect from BKP Prospectus


Potential recoverable unrisked deterministic reserves for the Heron Lead, if it is confirmed by the proposed detail seismic, if hydrocarbons are discovered and the structure is full to spill point, are of the order of 400 million barrels in the Cenomanian objectives and 300 million barrels in the Aptian objectives (as calculated by Isis, August 2004) and confirmed by current estimations. Approximately 60% of the Heron structure lies within Block 20.

Therefore, that part of the lead within Block 20 has estimated potential unrisked deterministic reserves of 420 million barrels in both objectives.......

Current seismic interpretation suggests that the Autruche-1, located south in Block 1, was not drilled in the optimum position with the crest of the structure located to the north possibly into Block 2.

A combined seismic survey with the Woodside consortium will not only confirm the western part of the Heron Lead but could also locate another prospect up-dip from the Autruche-1 well  where numerous oil and gas shows were encountered in the Cenomanian to Aptian sands.

Only by acquiring seismic that ties the offshore and onshore seismic data, can a full understanding of the Heron structure be determined.


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Mauritania hopes for new oil discoveries
Thu June 30, 2005 9:19 AM GMT+02:00

By Nick Tattersall

DAKAR (Reuters) - Mauritania, due to produce its first oil next year, could have significant reserves under its eastern desert and more crude off its Atlantic coast, a government minister and foreign oil firms said on Wednesday.

The poor, mostly desert country, which straddles black and Arab West Africa, is due to start producing 75,000 barrels of crude per day from its offshore Chinguetti field early in 2006 but hopes that could be just the tip of the iceberg.

"There is more potential. Up to now our great sedimentary (onshore) basin, Taoudeni, has not entered the equation. That is the one on which great hopes are pinned," Oil and Energy Minister Zeidane Ould H'Meida said.

"The one thing we know today is that there are no small reserves in Taoudeni, there are just large and medium-sized ones," he said on the sidelines of an industry conference in Senegal's capital Dakar. He declined to give any details.

French oil giant Total, Spain's Repsol and China's state-owned CNPC all have blocs in the Taoudeni basin, which stretches across the barren desert and savannah of eastern Mauritania on into Mali.

Australian oil and gas producer Woodside Petroleum, which operates the $625 million Chinguetti development, said it was also expanding its exploration off the coast of Mauritania after its initial success.

"We will drill up to six exploration wells in the second half of 2005," said Harald Lechner, Woodside's exploration and development manager in Mauritania.

Oil output from West Africa is expected to rise sharply in the next decade as foreign investment floods in and leading producers Nigeria and Angola boost production.

High crude prices also make exploration more attractive with better potential returns on riskier projects, industry executives say.

Oil from the region makes up 14 percent of imports to the United States, the world's top energy consumer, a figure expected to grow to 25 percent over the next decade......

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High oil prices attract prospectors to West Africa
Wed June 29, 2005 1:04 PM GMT+02:00

By Nick Tattersall

DAKAR (Reuters) - Soaring oil prices are encouraging an increasing number of foreign firms to venture into remote corners of West and North Africa in search of new supplies, industry and government officials said on Wednesday.

Oil prices surged to an all-time high above $60 a barrel for U.S. light crude on Monday amid fears of a global strain on production and refining capacity.

"(The high prices) have encouraged exploration growth by super majors and by a new breed of smaller companies," said Duncan Clarke, chairman of energy advisers Global Pacific & Partners, on the sidelines of an oil conference in Senegal.

"All of that is playing out in northwest Africa ... where governments and national oil companies have put up more acreage in new prospective frontier zones," he told Reuters.

Production from West Africa is expected to rise sharply in the next decade as foreign investment floods in, with high crude prices meaning better potential returns on riskier projects.

"The temptation at the moment is very high for companies to take the sort of risks that they would not normally do," said Harald Lechner, exploration and development manager in Mauritania for Australia's Woodside Petroleum.

The United States hopes to import a quarter of its oil from West Africa in a decade, up from 14 percent now.

Most of the increase is expected to come from deepwater fields in the Gulf of Guinea, but firms are also looking further north off West Africa's Atlantic coast and under the Sahara.

"We are countries which are underexplored," said Henri Coulibaly, deputy managing director of Mali's oil research promotion board AUREP, set up last September.

"High prices contribute a lot to companies relaunching here. They're looking more closely at coming to explore," he said.


Australia's Trans Ocean Securities became the third international firm to hunt for crude in northern Mali's deserts this month, joining fellow Australian firm Baraka Mali Ventures Limited and China's state-run Sinopec Corp.

Mali, one of the world's poorest nations, has 18 exploration blocks of which six are allocated, five are free and seven are the subject of "advanced negotiations", AUREP's Coulibaly said.

Senegal has commitments from eight oil firms to drill 29 wells over the next seven years as exploration intensifies following discoveries in neighbouring Mauritania, due to start producing 75,000 barrels per day from the start of next year.

"I see no reason why the success in Mauritania can't be extended both to the north and to the south," John Downey, Africa general manager for Dana Petroleum, a British independent with operations off Mauritania and Ghana, told the conference.

With major oil producers Libya and Algeria to the north and Nigeria to the south, nations around the Sahara, which rank among the world's poorest, are desperate to attract investment.

Niger's government would offer tax exoneration during the exploration phase, customs exemptions on equipment and cuts in income tax for oil firm employees, said Ousseini Assane Boureima, a senior official at the country's energy ministry.
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Wonder if BKP are applying for additional tenements at Taoudeni basin now that they have some $$$ in the kitty?




In the onshore Taoudeni basin, the ministry is in talks to sign production sharing contracts covering the Ta4 and Ta19 plays, possibly with Al Thani, and Ta29. Acreage is already held in the area by Woodside (Ta5 and 6), Total (Ta7 and 8), Repsol (Ta9 and 10), Baraka Petroleum (Ta11 and 12) and China National Petroleum Corporation (CNPC) (Ta13 and 21).
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Fourth firm joins hunt for oil in Mali desert

01.07.05 1.00pm

Mali has given a fourth international company the right to hunt for oil under its northern desert as the impoverished nation seeks to match neighbours Algeria, Mauritania and Niger by striking crude.

The government said in a statement it had awarded Australian firm Sphere Investments Ltd the rights to explore one block in the Gao region, near the border with Niger and Algeria, and one in the Taoudeni basin, which reaches into Mauritania.

Sphere said on its website the two blocks -- awarded to its 95 per cent owned subsidiary Mali Petroleum S.A. -- covered a total surface area of 64,300 square km.

"Mali Petroleum pledges to carry out various research projects and to drill a well on each of these two blocks over the next four years, at an investment cost of US$24.2 ($35.02) million," the government statement said......

Chinese state-run oil and gas firm Sinopec Corp struck an exploration deal with Mali last October, the same month Australian company Baraka Mali Ventures Limited also signed an agreement to start searching for crude........ 


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The $64 question is......


When will BKP list on AIM???


Listing on AIM allows BKP to join the likes of fellow Australian oil and gas entities, Hardman Resources, Global Petroleum and Roc Oil.


Listing on the AIM will expose BKP to greater capital raising opportunities and push up the SP in the process.



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