Pura Vida Energy receives approval for Moroccan offshore drilling
Pura Vida Energy (ASX: PVD) has had its Mazagan permit approved to drill two wells in Morocco under a rig share agreement with Atwood Achiever Deepwater Drillship, which is contracted by Kosmos Energy.
The first well to be drilled will be the Toubkal-1 well, and this will commence in January 2015. The second well is to be drilled in the second half of 2015.
PVD’s Managing Director, Damon Neaves, says: “Securing the rig for the two well drilling campaign is a major milestone which allows us to test key prospects and provides the opportunity for an early assessment of the value of the permit.”
The permit to drill in Mazagan has allowed PVD to begin exploring an area of 10,900km2. Located off the Moroccan coast in the Atlantic, PVD plans to drill to depths of between 1,000-1,500m. Seismatic maps of the area in 2D and 3D have shown there are four separate places where, under the Mazagan permit, PVD has prospects.
PVD has completed a farm out to a subsidiary of Freeport-McMoRan Oil and Gas LLC for its Mazagan permit, placing the company in a good financial position as drilling commences.
The PVD balance sheet
PVD entered 2014 in a strong position, with US$28M in the bank, according to its latest half-year report. Since listing on the ASX at the beginning of 2012, PVD has grown substantially.
Along with securing funding for its deepwater drilling in Morocco, the company has also acquired new prospects in Gabon and Madagascar.
Gabon and Madagascar developments
In Gabon, PVD has purchased Nkembe Block to produce oilfields. The area is around 1,200km2 with water depths of between 50-500m.
PVD believes there is abundant oil in this area and is currently undergoing a farm-out process to find a partner for the Nkembe Block. It says it is receiving ‘strong interest’ from the oil industry.
The company also holds a 50% stake, with the other half belonging to Sterling Energy, at the Ambilobe Block in Madagascar – an area of 17,650km2.
So far only a little exploration has been carried out in this area and PVD has not begun to drill for oil. However, PVD is currently in phase two of exploration and plans to acquire and process 3D seismic data towards the end of this year.
Short-term positions in small, early stage ASX companies,
with high potential and near term price catalysts.
Focusing on resource exploration, early-stage tech, and biotech.
Exceptional opportunities across a broad range of
early-stage growth sectors with strong management.
Seeking 1,000% plus returns across medium to long-term holds.
Longer-term positions in a variety of sectors.
Seeking strong management where traction is established and have entered into a growth phase.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.