Statoil Farms in to Baraka’s Unconventional Oil & Gas Shale Permits via JV Partner Australia

Baraka Energy and Resources Ltd’s (ASX: BKP) (Frankfurt Exchange RBD: GR) (“Baraka” or “the Company”), is pleased to announce its joint venture partner, Petrofrontier Corp (“Petrofrontier”), has entered into a binding farm-in agreement (the “Farm-in Agreement”) with Statoil Australia Oil and Gas AS (“Statoil”), a wholly-owned subsidiary of Statoil ASA of Norway whereby Statoil will farm into the four exploration permits (EP103, EP104, EP127 & EP128) and two exploration permit applications(EP213 & EPA252) in the Southern Georgina Basin, Northern Territory, Australia. The Farm-in Agreement is subject to satisfaction of certain conditions precedent, including the approval of the Foreign Investment Review Board of Australia (the “FIRB”).

Pursuant to the terms of the Farm-in Agreement, Statoil will have the option to earn up to 65% of our JV partners working interests in EP 103, EP 104(PetroFrontier 100%), EP 127 and EP 128(Baraka 25% & PetroFrontier 75%) (“EPs”) and in EPA 213 and EPA 252(PetroFrontier 100%) (“EPAs”) in exchange for exploration program related payments and carried costs of up to US$210.0 million over three phases. Baraka will retain 25% working interest in both EP 127 and EP 128 including a 75% undivided working interest in the 75km² around the Elkedra-7 well on EP128. PetroFrontier having now earned its additional 50% in EP127 and EP128, Baraka will now meet its contributions when & if required.

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