The company's share of production from La Punta-1 is 8.28% of the total daily crude production of about 1400bopd, following Baraka's initial farm-in payment of $US1.5 million.

In addition to its share of daily crude production, Baraka is receiving 25.75% of the liquid-stripping gas business at La Punta.

This represents about 49bpd of liquid petroleum gas and 21bpd of Nafta.

Baraka's total farm-in cost to the La Punta project was $10.5 million. Of this amount, $7 million will be spent on seismic, drilling and facility upgrade costs.

The La Punta joint venture has lodged an application to drill an up-dip development well, La Punta-2.

Deeper exploration objectives are also targeted at La Punta-2 and, given a discovery, Baraka will obtain a net 25.76% of future production from these formations.

The location of La Punta-2 will be based on the results of a 45-square kilometre 3D seismic survey to start this month.

Baraka will also have the rights to participate in future production from any exploration wells to be drilled in the La Punta Block.

The JV will consider the timing of exploration drilling after the results of the 3D seismic survey have been received.

Baraka estimated its share of La Punta-1 and La Punta-2 oil resources to be about 300,000 barrels, with a further 2.8 million barrels of exploration potential.

The company said the estimated pay-back of its investment in the project was expected in about 16 months.