agm results

Hi all

I have just returned from Baraka's AGM highly encouraged by what I heard. The acreage BKP hold in Mauritania, Mali etc is massive and appears to contain an amazing number of promising leads.

There quite a number of points that need to be understood to fully appreciate this company and its potential. I will post a few here now and more as time comes available. Butcherano was also there, (flew over for the day) so I am sure he will add additional info if I forget.

For convenience I will note down my observations in point form below. Please understand that the points are from memory as I understood them and may not be completely accurate and should not be relied upon when forming an investment decision.

*The first point I would like to make is that what is described as the Primary target is not necessarily considered the best or most promising of the two areas targeted in Heron. The first (primary) target is massive in area; however, the second (secondary) target is a less complex basin and would appear to offer a better chance of seal containing easily recoverable oil.

*When examining the geology of the Autruche well only a few kilometres away (undersea) they discovered 2500 metre oil shows. Unfortunately the oil had migrated upwards and away from the well, but the extent of the formation was clearly established. Heron is favourably positioned where BKP believe there is a good seal. If oil is found in it, we could be looking at 200mmbbl+.

*Currently the drill is still only around the 1700mtres and results will not be known till next week. The top of the first target is between 2000 to 2500 metres, so all those believing there was an info leak of a dry hole are way off the mark.

*Further to popular belief, they are not logging as they go. They are just drilling and looking at the core samples as they come to the surface.

*The drill supplied by the Chinese is nearly new (2 yrs old)

*A short while ago the drilling stopped while a part was sourced from China. Hotcopper members derided the Chinese and speculated that they were using second hand drill bits etc. This could not have been further from the truth. The seal between the drill pipe and the Blowout preventer was less than one mm out in size and therefore the seal could not be 100% guaranteed. The Chinese had a new collar machined in China and flown back to Mauritania within those few days. They are perhaps more concerned about the environment than we are.(or about a burnt out rig)

*BKP have their geologist on site working with the Chinese crew.

I asked the following questions at the AGM, see answers below:

1.Will the second lead in Block 20 be drilled if Heron is a duster?
a.It would depend on the geology of the drill. If for example evidence of oil that has migrated elsewhere was found then they would move on to the second lead.
2.The airborne survey results should have been interpreted by now. Can you comment on them.
a.Final airborne gravitational surveys are currently been finalised. When finished all info will be assessed. Results available early in New Year.
3.When will BMO recoup its past costs associated with Year 1 and Year 2 of the exploration program?
a.USD9million will be paid on government signing off on farmout, seems like around a month. A further USD 10million to BKP for ongoing exploration.
4.Can you comment on progress towards the acquisition of a mature or producing asset.
a.BKP is forming an alliance with 5 major international companies to seek out opportunities in the region. BKP are committed to investing in a producing asset that will fund their exploration program as soon as possible. Reading between the lines I believe one has been found but negotiations are still in progress.

I was informed that a copy of the slides from the AGM had been put on the ASX but someone has stuffed up. I will ring BKP and get them to rectify and then will post more once the AGM slides are available to jog my memory