PXP will pay $15m in cash to farm-in to Pura Vida Energy’s 75% working interest in the Mazagan permit, which is located 100km offshore Morocco in the Essaouira Basin.
The permit area covering 2.7 million acre includes numerous Mid Miocene and Lower Cretaceous prospects which were identified recently by the reprocessed 3D seismic data.
In addition, an independent evaluation of the permit area has suggested that the gross unrisked mean prospective recoverable resources in the area could be in excess to 7 billion barrels, including the 1.5 billion barrel gross unrisked mean prospective recoverable resource Toubkal Mid Miocene prospect.
PXP will gain 52% working interest in the permit and become the operator by funding 100% of the costs incurred on certain exploration activities which include funding and drilling two wells.
If all the terms of the agreement are agreed to, the company will further fund many other exploration operations to a maximum of $215m.
The first well is expected to be drilled in 2014 primarily targeting the Toubkal prospect.
