Baraka said Mali joint venture operator ENI formally advised the company that subject to the completion of an assignment agreement, it would release the company from the Mali operations.

The company is pulling out of its commitments in West Africa and South America after going into voluntary administration last month.

Baraka has spent about $20 million in the past 18 months and had $7.3 million in the bank at the end of the December 2007 quarter.

In Mauritania, Baraka is attempting to farm-out its 25% interest in blocks Ta11 and Ta12 through an asset sale.

According to Baraka, a number of companies are reviewing the opportunity to secure the blocks, which have the benefit of a free carry through the current approved work program.

Meanwhile, the company has received a formal termination notice from the La Punta joint venture in Colombia after failing to complete the funding of the LP-2 development well.

The company also said it is in discussions with a number of parties over the partial or complete sale of its Chicuaco assets in Colombia.

Baraka has a 20% working interest in the Chicuaco block.