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.
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