Pura Vida Energy¹s Damon Neaves discusses high prospectivity of Morrocan permit at “Stars in 2012”
ProActive Investors USA & Canada
Pura Vida Energy
Pura Vida Energy has a 75 per cent interest in the Mazagan Offshore Area. Mazagan is located off the coast of Morocco in the Atlantic. We have modern, high quality 3D seismic data over the block with independently certified potential resources of more than a billion barrels of oil. The Toubkal prospect alone has a potential resource range of 180 million to 1.670 billion barrels of oil, with a mean estimate of 790 million barrels of oil. Toubkal is an analogue of the billion barrel Jubilee field in Ghana – the largest oil discovery made in West Africa in the past decade.
Pura Vida Energy’s Damon Neaves discusses high prospectivity of Morrocan permit at “Stars in 2012”
Pura Vida Energy’s (ASX: PVD) Mazagan permit, offshore Morocco has substantial exploration potential with a net 2.4 billion barrels of mean prospective recoverable resources estimated.
Damon Neaves, managing director, fielded answers during Question Time at Proactive Investors’ ‘Stars in 2012 Series’ in Sydney, Wednesday 6th June.The presentation on the night can be ACCESSED HERE.The most promising prospect, Toubkal, has the potential for 790 million barrels of oil and is a ‘look-a-like’ of the billion barrel Jubilee field in Ghana – the largest oil discovery in West Africa in the past decade.The Mazagan permit is located in the Essaouira Basin, a proven hydrocarbon system, with shows demonstrated in 80% of wells drilled offshore Morocco.Major discoveries in the West African transform margin have spurred a ‘land grab’ along the North African coast.The Mazagan permit covers 10,900 square kilometres and has been the subject of 3,570 square kilometres of modern 3D seismic.Question from the audienceThe 25%, that’s Moroccan Government owned, what is their position as far as farming in, in relation to cost?Damon NeavesWell they’re free-carried through the exploration phase, so we’re funding them. They pay their way through any development and production operations.That’s quite standard for the terms in Morocco and in fact the fiscal terms are amongst the most favourable in the world. It’s effectively a 70/30 split.So the Government gets a small royalty on top of that, but that’s a post-tax split, so we get a full 10 year tax holiday from corporate income tax and if you look at the Government-take studies that are published by the likes of Woodmac and other research organisations they consistently rank Morocco up there amongst the best in the world.Question from the audienceWhat is the depth that you are going to?Damon NeavesWe’re drilling down, for example on the Toubkal prospect, to about 2,500 metres. So it’s fairly shallow. The reason the drilling becomes quite expensive is we are in fairly deep water. So over this prospect we’re in about 1,200 or 1,400 metres of water so we need a big rig or a drill ship.Question from the audienceHow do expect to fund that drilling campaign, what level of dilution do you expect?Damon NeavesTypically the kinds of deals we are seeing are regionally, what we describe as a two for one promote. What that means is we’ll give up half of our 75% equity to a major deepwater operator in return for them funding us through the well operations.So as I said we’re funded through our pre-well operations, reprocessing work and our drop core program, but we’re looking to bring a major or big independent in to fund the drilling program, and you can see regionally that the level of activity supports that expectation.Question from the audienceWould you expect that to be one well or two?Damon NeavesWe’re actually hoping for anywhere from a one to three well carry, but if you look at that company Kosmos who picked up the block around us, their Jubilee prospect, which was a discovery and ultimately has been brought into production, it’s a billion barrel field, it is a close analogue to our Toubkal prospect. They got a three well carry on that project.Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.