The company began proceedings in the Supreme Court of Western Australia in March against Statoil and Petrofrontier over the 2014 work program for the EP127 and EP128 permits in the Georgina Basin, Northern Territory.

The action came after Baraka was served with default notices in relation to the work program, alleging it had failed to service cash calls.

The explorer claimed in January that the $26.6 million work programs for the permits in 2014 were invalid. It said it would not contribute on the basis that it would have to raise $4 million on top of its assets and cash for what it said would be the testing and data collection of three wells with no possibility of production.

The first of those wells, OzBeta-1, was spudded last week, with Baraka claiming its 25% share.

"Until the proceedings are resolved then Baraka is entitled to their full entitlements subject to any final legal outcome and or a settlement," Baraka chairman Collin Vost told Energy News.

"Baraka and Statoil/Petrofrontier have had a number of hearings and mediations to resolve the differences and whilst it is not yet resolved it is hoped by all parties that a resolution and agreement can be reached during May."

Subject to results, the OzBeta-1 well will be cased for future hydraulic fracture stimulation and production testing.

OzDelta-1 and OzEpsilon will be the second and third vertical test wells, both drilled in EP128.