PERTH (miningweekly.com) – Emerging oil explorer Pura Vida Energy has moved to acquire a 50% shareholding in the Ambilobe block, offshore Madagascar.
The ASX-listed oil player told shareholders on Friday that the Ambilobe block complemented the company’s growing portfolio of high-quality offshore African exploration acreage, targeting a range of different oil plays.
In a farm-in deal signed with Aim-listed Sterling Energy, Pura Vida would reimburse $1.25-million in back costs and fund the acquisition and processing of 1 00 km of two-dimensional (2D) and 1 250 km2 of three-dimensional (3D) seismic data targeting substantial anticlinal- and salt-related prospects up to a maximum cost of $15-million.
Pura Vida said that an opportunity existed to acquire the 2D data during the first half of 2014, and discussions were under way regarding the use of a vessel, with the cost anticipated to be around $2-million.
The 3D acquisition would be undertaken separately following a competitive tender, and timing would be determined by vessel availability.
Pura Vida believed that the Ambilobe block held the potential for a variety of plays relating to salt, with the potential for large-scale oil discoveries.
Meanwhile, the junior had also received all the necessary outstanding government approvals for its farm-out of the Mazagan permit, offshore of Morocco.
Pura Vida and Freeport-McMoRan Oil & Gas have now completed the terms of the farm-out agreement, and the company had received a $15-million cash payment from the latter.
The first well in Morocco would target the Toubkal prospect.
“The completion of the Mazagan farm-out is a transformational event for Pura Vida and we are now entering the drilling phase to test exciting plays offshore of Morocco,” said MD Damon Neaves.
“The company was founded with this purpose in mind, so this farm-out success is a strong endorsement of our strategy.”