Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Pura Vida Energy Completes Farm-Out Of Morocco Offshore Oil Permit To Freeport-McMoRan

Pura Vida Energy (ASX: PVD) has completed the farm-out of its Mazagan permit, offshore Morocco, to a subsidiary of Freeport-McMoRan Oil & Gas (NYSE: FCX) in return for US$15 million in cash and a free carry on two exploration wells.

It is also entering East Africa with a farm-in to 50% of the Ambilobe Production Sharing Contract (NASDAQ:PSC) offshore Madagascar.

The farm-out to Freeport-McMoRan is a key milestone as it allows drilling to begin on the Mazagan permit with the first well targeting the 1.5 billion barrel Toubkal prospect.

The company will retain a 23% stake in the permit.

Pura Vida is also taking up a 50% stake in Ambilobe under an agreement with Sterling Energy (AIM: SEY) by reimbursing US$1.25 million back costs and funding the acquisition and processing of 1,000 kilometres of 2D and 1,250 square kilometres of 3D seismic data to a maximum cost of US$15 million.

Ambilobe has a number of plays relating to salt with potential for large scale oil discoveries.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.