"Baraka has been reluctant to resort to court action, but was left with no alternative," the company said in a statement, referring to default notices which the company received from Statoil which could result in the forfeiture of Baraka's 25% interest in the permits.

The default notices allege failure on Baraka's part to pay cash calls under the work programs.

Baraka 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.

If the extra money was raised from the market, the company said it could require the issue of about one billion additional shares, resulting in a severe dilution of shareholders' assets.

The company claimed that its perception of the technical and economic shortcomings in the work programs were not in accord with the original agreement between the parties of the joint venture.

Baraka said it was confident that it would succeed in preventing the forfeiture of its interest in the permits, however it continues to work towards a negotiated solution.