by Ian Lyall
PVD found “direct hydrocarbon indicators” over a number a number of key prospects, including Toubkal, which has a mean resource potential of 1.5 billion barrels of oil
N+1 Singer this morning restated its buy advice and A$2.25 price target on Pura Vida (ASX:PVD) after the release of new data that confirms and enhances the prospectivity of its Mazagan permit off the coast of Morocco.
The company carried out a process called seismic inversion that gives a more granular assessment of the rock properties permit area and the area’s potential to host oil reservoirs.
“The inversion process used well data from nearby wells to predict the seismic response that best fits with the presence of hydrocarbons,” explained N+1 analyst Tracy Mackenzie.
“Results demonstrated an excellent match between the prediction of hydrocarbons from the well data and the actual seismic acquired over the Mazagan permit giving a high degree of confidence for the presence of hydrocarbons.”
PVD found “direct hydrocarbon indicators” over a number a number of key prospects, including Toubkal, which has a mean resource potential of 1.5 billion barrels of oil.
“The results of the inversion study demonstrate an excellent match between the prediction of hydrocarbons from the well data and the actual seismic acquired over the Mazagan permit,” the company said in a statement.
“By obtaining the same results following different processes, this gives high confidence for the presence of hydrocarbons.”
The latest update follows on from a major resource upgrade last week.
On Friday PVD revealed the offshore Mazagan permit now has total mean prospective resources of 7 billion barrels, with 5.3 billion barrels net to the company.
This more than doubled the company’s previous net estimate – of 2.4 billion barrels.
PVD is currently looking for a farm-in partner for the asset, and the latest, positive update will no doubt strengthen the hand in negotiations.
“The positive results from the inversion modelling will be included in the data room for the farm-out process,” N+1’s Mackenzie.
“Strong geological backing combined with farm-in activity on proximate acreage (most recently by Genel and Cairn) should buoy investor confidence on the likelihood of a successful farm-down at attractive terms.”
ASX-listed Pura Vida’s shares closed more than 5 per cent higher at 69.5 cents
