Baraka's claim in January that the $26.6 million 2014 work programs for the EP127 and EP128 permits were invalid has now been withdrawn.

Similarly, Statoil and Petrofrontier have withdrawn their assertion that Baraka is in default of meeting cash calls for the work program and budget under the joint operating agreements.

The parties have agreed that Baraka has elected not to contribute, and that its 25% participating interest in each permit will be diluted accordingly.

The extent of the dilution will be based on the final work program expenditures.

As a result of the resolution, Baraka will still receive data and information relating to the joint operations for the work program and budget.

Baraka's court action has been dismissed on the basis that each party will pay its own costs.

The explorer said in January that 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.

Baraka claimed the proposed work programs were not technically or economically prudent and involved costly drilling in questionable locations, which was not in accord with the original intention of the parties under the JOAs.