Pro active Investors Australia

by Proactive Investors

Pura Vida

Pura Vida Energy (ASX:PVD) expects to spud in April 2015 a potentially transformational well offshore Morocco that targets 328 million barrels of oil net to the company.

Notably, the company is carried for its 23% interest in the MZ-1 well by Freeport McMoRan Oil & Gas (NYSE:FCX) for up to US$215 million.

Latest investor presentation

Managing director, Damon Neaves, outlined the company’s drilling program offshore Morocco to investors this week in Melbourne and Sydney.


Morocco Oil Play

The MZ-1 well targets the Ouanoukrim prospect, which has total gross unrisked mean prospective resources of over 1.4 billion barrels, with a high case of over 3 billion barrels.

This targets four stacked targets representing a range of play types. This could increase to five targets if the well is deepened.

Pura Vida also has the option to continue the carry by Freeport beyond the US$215 million cap any time prior to the spud of the second well.

If the option is exercised and the cap is exceeded then PVD will dilute 1% of its interest in the permit for each US$4.5 million gross well costs in excess of the cap.

The company also has a 100% interest in the Nkembe Project offshore Gabon, which has the potential to host 1.3 billion barrels of oil and the Ambilobe Project offshore Madagascar.