Work on the highly prospective Mazagan permit, which has 2.4 billion barrels of mean prospective recoverable oil resources net to the company, has been progressing well ahead of schedule with the work program expected to be completed in September 2012 rather than the original target of December 2013.
While the company is fully funded for its work program on the highly prospective Mazagan permit, acquiring new projects to build a diversified asset portfolio is also high on its priority list.
"Vida has received strong interest from institutional investors since listing earlier this year and this placement has successfully introduced several of these institutions onto Pura Vida's share register," managing director Damon Neaves said.
"We are very pleased with the overwhelming interest received for this capital raising and I wish to take this opportunity welcome our new investors and thank our existing shareholders for their continued support."
Pura Vida is issuing up to 12 million shares at A$0.25 each to institutional and sophisticated investors to raise the A$3 million.
About half of this will be issued under the company's 15% capacity under ASX Listing Rule 7.1 while shareholder approval will be sought at a General Meeting in mid-August 2012 to issue the remaining shares.
Partner sought for Mazagan
The rapid progress Pura Vida has made on Mazagan has also allowed it to appoint EZDataRoom to manage a farm-out process from October 2012.
Finding a partner able to undertake a work program of up to three wells will allow Pura Vida to assess the hydrocarbon and production potential of the permit at minimal cost.
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
Morocco has an attractive fiscal regime with a 70/30 revenue split in the company's favour. While the Government gets a small royalty on top of that, Pura Vida also has a full 10 year tax holiday from corporate income tax.
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