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.

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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.

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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

SOURCE Edison Investment Research