Oil and gas junior Pura Vida Energy has completed a $5.95 million placement, to fund drilling programs at its Mazagan acreage off the coast of Morocco.
Pura Vida said the placement, which was priced at 70 cents per share, closed oversubscribed after receiving strong interest from institutional and sophisticated investors.
The placement was lead managed by Hartleys, while CPS Securities acted as broker.
Pura Vida managing director Damon Neaves said the placement demonstrated belief in the company’s growth strategy and recognised the progress made at the Mazagan permit.
“This year has seen Pura Vida deliver on a number of its objectives,” Mr Neaves said.
“In particular, positive results from various activities undertaken in relation to the Mazagan permit have placed the company in a position to achieve significant value from the farmout.
“A successful farmout coupled with the diversification of our asset portfolio will be transformational.”
At 12:10PM, WST, Pura Vida’s stock was up 4.3 per cent, trading at 83.5 cents.
The company listed in February this year with an offer price of 20 cents.