Edison Initiates Coverage on Pura Vida Energy

May 26, 2015, 06:05 ET from Edison Investment Research

LONDON, May 26, 2015 /PRNewswire/ --

Edison Investment Research, a leading international investment research firm, announces the initiation of full coverage of Pura Vida Energy

Highlights of the analysis on Pura Vida Energy by Edison's oil & gas analysts Tim Heeley and Will Forbes include:

Pura Vida has a varied African exploration portfolio and is currently drilling the MZ-1 well in Morocco and undertaking 3D seismic in Madagascar. It has executed timely and commercially astute farm-outs to increase shareholder exposure to world-class exploration.

     (Logo: http://photos.prnewswire.com/prnh/20130417/608168 )

The Freeport farm-in values the Moroccan block at c A$127m for Pura Vida's 23% share. Our DCF-derived assessment of US$9.5/bbl for MZ-1 is risked by a 7.2% chance of success, giving a RENAV of A$1.42/share. The company is funded through 2015, but will need a farm-down or further equity for any Gabon work. The upside case for a discovery is significant, but the first steps are the MZ-1 well followed by the second as this will set the direction for the share price. The company entered exploration plays with an eye on delivering near-term shareholder value and has executed timely and value-accretive farm-outs. The ongoing volatility in the sector should play into this strategy.

To download this report, please click here.

All reports published by Edison are available to download free of charge from its website http://www.edisongroup.com.

About Edison: Edison, the investment intelligence firm, is the future of investor interaction with corporates. Our team of over 100 analysts and investment professionals works with leading companies, fund managers and investment banks worldwide to support their capital markets activities. We provide services to more than 400 retained corporate and investor clients from our offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority (http://www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584).

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

Contact details: Learn more at http://www.edisongroup.com and connect with Edison on:  
LinkedIn: http://www.linkedin.com/company/edison-investment-research
Twitter: http://www.twitter.com/Edison_Inv_Res
YouTube: http://www.youtube.com/edisonitv

For more information please contact:
Tim Heeley, Edison Investment Research, +64(0)4-8948-555
Will Forbes, Edison Investment Research, +44(0)20-3077-5749
oilandgas@edisongroup.com

SOURCE Edison Investment Research