Baraka acquires interest in producing La Punta oilfield

Baraka Petroleum has executed an agreement to acquire an interest in the....

  Baraka Petroleum has executed an agreement to acquire an interest in the La Punta Oilfield in eastern Colombia.Baraka Managing Director, Dr Mark Fenton said the acquisition of the La Punta Oilfield interest was an exciting initiative for Baraka. “The newly restructured Board of Baraka is focused on growing the company and this is our first major step to rebalance our exploration and production portfolio,” Dr Fenton said. “The acquisition of an interest in the La Punta Oilfield provides us with existing production, near-term development and exploration upside to complement the exploration potential of our West African acreage,” he said.“By using our balance sheet to rebalance our portfolio at this time, we deliver immediate cash flow, provide our investors with exposure to the drilling of the La Punta-2 development well in the next six months and the additional exploration potential of the wider La Punta block.” Dr Fenton said the company was excited by the opportunities opening up in South America. He said the company believes there are other oilfields like La Punta and that Baraka can acquire producing assets with development and exploration potential in the future.The La Punta acquisition will be achieved through an Assignment Agreement with Union Temporal Omega, an unincorporated joint venture vehicle that includes TC Oil & Services S.A. as the technical operator of the La Punta Oilfield.