Pura shares soar after it strikes $6.5m deal

Shares in Pura Vida Energy surged more than 80 per cent higher today, to 3.1 cents, after it secured a binding farm-in agreement with UK-based Gemini Resources to earn a 35 per cent interest in two onshore oil and gas projects in Poland.

Under the deal, Pura Vida can earn the 35 per cent interest in Nowa Sol and Gora projects by spending $6.5 million.

Pura Vida intends to spend the funds at two wells, with $3.9 million set to go towards a two-stage proppant fracture stimulation and flow test of the Siciny-two well at the Gora Licence, and $2.25 million on a similar test at the Jany-C1 well at the Nowa Sol Licence.

The company said around $45 million covering 3D seismic and drilling programs had been spent at the licences since 2008.

In conjunction with the agreement, Pura will undertake a $1 million placement and $2.7 million rights issue, both at 18 cents per share, which is a 5.9 per cent premium of its previous closing price of 1.7 cents per share.

CPS Capital Group are the lead managers for the placement and will fully underwrite the rights issue.