Baraka Energy & Resources' (ASX: BKP, RBD: GR) joint venture partner Petrofrontier Corp (TSX-V: PFC) has secured Rig #918 with Ensign Australia for the drilling of two horizontal wells in the Southern Georgina Basin.
Rig #918 is a small double oil field rig which has a greater hook load and pump capacity compared to the previous rig, which should notably improve tripping times and reduce overall costs.
Drilling will begin on the horizontal section of Baraka's MacIntyre-2H (in EP 127) well following the release of the rig from its current operations and mobilisation to the well site, expected to be in mid to late March.
Plans are to then drill a high angle pilot hole and horizontal leg of PetroFrontier's Owen-3 (in EP 104) well immediately after.
However, target dates are dependent upon completion of Rig #918's current drilling operations and the end of the wet season in the areas of MacIntyre-2 and Owen-3.
PetroFrontier is currently negotiating to secure a service rig to support its upcoming completion and stimulation operations at MacIntyre-2H, Baldwin-2Hst1 and Owen-3H.
Completion operations are expected to begin in April 2012. MacIntyre-2H, Baldwin-2Hst1 and Owen-3H will be frac'd, flowed and completed in that order.
PetroFrontier is in the process of seeking a major farm-in partner to participate in the Georgina Basin exploration program.
The company has received numerous expressions of interest to farm in to its Georgina Basin holdings.
Results for MacIntyre-2 were very positive showing about 22 metres of true vertical depth pay with porosities varying between 5 and 11%.
Petrofrontier has appointed Macquarie Capital Markets Canada to seek a potential farm in partner, which would defray that company's costs.
Baraka has a free carried 25% working interest up to completion of a minimum of 500 metres of horizontal drilling into the Basel Arthur Creek Shale on either EP 127 or EP 128.
Baraka would not need to participate in any reduced percentage in the joint venture by virtue of any incoming party, and could meet any and all cost commitments when required to retain its full 25% participating interest in the joint venture.