05/12/2013 - 08:40

Pura Vida raises $13.5m for African projects

05/12/2013 - 08:40

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Pura Vida Energy has made further progress for its African offshore oil projects, and announced a placement raising $13.5 million.

Pura Vida raises $13.5m for African projects
Pura Vida managing director Damon Neaves.

Pura Vida Energy has made further progress for its African offshore oil projects, and announced a placement raising $13.5 million.

The capital will be applied to progressing the company’s farm-out process at its Nkembe project off the coast of Gabon and drilling at its Mazagan project off the coast of Morocco.

The funds have been raised through the placement of 21.5 million shares at 63 cents per share, managed globally by Hartleys and in Australia by Morgans.

Pura Vida has also announced the completion of its farm-in agreement with Sterling Energy at the Ambilobe project off the coast of Madagascar, with part of the placement funds raised to be used for seismic and drilling activities at the block, after consent from the Madagascan government was granted.

Sterling is a UK-based independent oil and gas explorer focused on Africa.

The two companies each have a 50 per cent share in the Ambilobe joint venture.

“We are very pleased to have achieved completion of Pura Vida’s entry into the Ambilobe block and to join our new partner Sterling in exploring this exceptionally prospective region,” Pura Vida managing director Damon Neaves said.

“Pura Vida has experienced extraordinary growth since listing on the ASX in 2012.

“We have completed a farm-out for a high-impact drilling program on our Mazagan project where we are free-carried on two firm wells for up to $US215 million, and diversified our portfolio with the addition of projects offshore Gabon and offshore Madagascar.

“The placement ensures the company is properly capitalised and fully funded across the portfolio as we head into a period of significant activity.”

This is the fifth placement made by Pura Vida starting from its initial public offering of $4 million at an issue price of 20 cents per share, and takes the total capital raising made by the company to $41 million since November 2011.

Shares in Pura Vida are down 2 cents, trading at 67.5 cents as of 8.30am, WST.

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