Norway’s Statoil AS has pulled out of two exploration permits in the southern Georgina basin onshore Northern Territory.
The move follows disappointing results from drilling and testing in permits EP127 and EP128 that Statoil conducted with Baraka Energy & Resources Ltd., South Perth.
The companies say the wells found insufficient reservoir permeability in any of the target shale formations despite encouraging hydrocarbon shows.
Commenting on Statoil’s exit, Baraka said it had been approached by a Canadian company interested in pursuing exploration in conventional oil and gas reservoirs in EP127.
Baraka says that all minimum expenditures for both permits have been met and further exploration will be subject to discussions with the joint venture partners (including the interested Canadian group) and the regulator.
The company has not yet heard whether Statoil also plans to withdraw from EP103 and EP104, which are operated by PetroFrontier Corp., Calgary.
Statoil recently was awarded a new permit offshore Western Australia in which it holds 100%.