Baraka opened its first ASX session at 18 cents and closed at 17.5 cents with 18.1 million shares changing hands. Its recent initial public offer closed oversubscribed, raising $17 million through 85 million shares at 20 cents.

The company has put together one of the largest oil and gas portfolios in West Africa, having secured the rights to explore and develop eight tenements covering more than 272,000 square kilometres in Mauritania and Mali.

Baraka also entered into a memorandum of understanding (MOU) with the Moroccan national oil company (ONAREP) to examine the Cap Juby offshore petroleum block. Historical evaluation of the acreage has shown heavy oil accumulations that modern technology might be able to make viable at present oil price levels, the company said.

The Cap Juby MOU gives Baraka the exclusive right for six months to evaluate the field and review substantial data held by ONAREP. It can also choose to negotiate an exclusive exploration and development concession over all or part of the tenement.

Baraka said it was planning to immediately begin a data evaluation program, including re-evaluation of available 2D and 3D seismic data, to determine the structural complexities of the Cap Juby heavy oil reservoir.

Baraka already has a joint venture with Woodside Petroleum covering two blocks in the Taoudeni Basin in Mauritania. Woodside, currently developing the Chinguetti oil project off Mauritanian coast, has committed to spend up to $US18 million ($A23.67 million) on the acreage to earn a maximum 75% stake.

Baraka's managing director and chief executive Max de Vietri has a long history in Mauritania.

He previously introduced exploration opportunities in the country to Hardman Resources Ltd, which farmed out the properties to several companies, including Woodside. This led to the discovery of the Chinguetti and Tiof oil fields.