Australia’s Statoil has served default notices for cash calls it claims have not been paid by partner Baraka Energy & Resources, despite the fact Baraka has disputed upcoming work programmes.

Baraka gave notice under the joint operating agreement (JOA) that it was electing not to contribute to the work programmes for EP127 and EP128 in the Georgina basin, stating they were “invalid”.

Statoil as the operator issued default issues, which if they were found valid, would lead to the forfeiture of Baraka’s interest in the permits.

Baraka has hit back, stating its election not to participate in the work programmes was valid, deeming the default notices invalid.

The company also reiterated that the work programmes were not in its view validly adopted.

Baraka will take legal action against the default notices and will file for an injunction to stop the forfeiture of its interest.

It holds a 25% interest in each permit, while Statoil holds 60% and Petrofrontier holds 15%.

The operating committee under each agreement approved the 2014 work programmes by a majority vote, with Baraka abstaining.

The company has given notice that, if the work programmes are found as valid, it would not contribute its costs and would sell off a part of its 25% interest in each JOA.

Baraka wants the Hagen member in the south-western area of EP127 to be considered for the 2014 programme.

This was originally rejected by Statoil because of poor seismic testing, top seal and migration risks and because of faulting in the area.

The 2014 programme was set to cost Baraka about $6.65 million, which would require the company to raise another $4 million.

Baraka said at the time it was not satisfied that the work programmes were technically or economically prudent, or reasonable and fair, and involved costly drilling in questionable locations.