Pura Vida Energy (PVD)

Business description

Pura Vida Energy is an ASX-listed E&P with interests in blocks offshore Morocco and Gabon. The main focus is on high-impact exploration drilling in Morocco, with Gabon offering appraisal/development options in addition to exploration.

Exploration value benchmarks

Update | Oil & Gas | 16/03/2015

While 2014 offered numerous opportunities for investors seeking exposure to pure-play exploration, 2015 promises to be a much more rarefied year. The fall in oil price has triggered a retrenchment in exploration spending, leaving many wells postponed or at best uncertain. This leaves exploration at Mazagan, Morocco (Pura Vida) as one of the few companies with confirmed prospects drilling that investors can access directly. Our analysis indicates that the markets are already pricing in a significant discount on Pura Vida (PVD) shares. At around $0.1/ unrisked boe, PVD is trading at around half the valuation that many pure-plays were being valued at in past years and much lower levels than some wells, especially those of larger peers. While we are explicitly not valuing PVD in this report (a full initiation will follow), we believe the combination of price and significant near-term catalysts means PVD shares could be worth examining.

Tagged: Oil & gas

Edison's research is freely available. We will never ask for your credit card details and you do not need to register. By downloading this research you are agreeing to our terms and conditions, which you can read in full here.

Company news