- Pura Vida shares rose 60 per cent today after announcing a contract to earn 35 per cent of the Polish Nowa Sol and Gora oil and gas projects
- Pura Vida must spend $6.15 million on work at the Gora and Nowa Sol concessions to earn the interest in the projects
- Pura Vida will take on some appraisal and flow testing to figure out the commerciality of the project area
- The earn-in agreement is expected to be completed by the end of August this year, so long as certain agreed-upon conditions are met
Pura Vida shares are up nearly 60 per cent after signing an oil and gas project in Poland.
Under the terms of the agreement with private UK company Gemini Resources, Pura Vida must spend $6.15 million on work at the Gora and Nowa Sol concessions to earn the interest in the projects. The contract also gives Pura Vida the option to drill several prospects at the Rotliegendes reservoir.
The licence, according to Pura Vida, is located in proven basins and surrounded by existing oil and gas fields. With several recent discoveries in the area, Pura Vida will take on some appraisal and flow testing to figure out the commerciality of the project area.
The Gora licence coverers roughly 693 square kilometres, with the biggest prospect holding a best estimate potential of 110 billion cubic feet prospective resources.
Nowa Sol covers an area of 1165 square kilometres, with an estimated 2C contingent resources of 36 million barrels of oil.
The earn-in agreement is expected to be completed by the end of August this year, so long as certain agreed-upon conditions are met.
Among these conditions are Pura Vida completing due diligence of Gemini Resources and gaining shareholder approval.
To help fund the transaction, Pura Vida plans to raise $3.7 million through a share placement and entitlement offer. On top of this, two UK-based directors will be appointed to the Pura Vida board.
PVD shares hit a premium 3 cents each just after 11am AEST today. Currently, they trade for 2.5 cents a piece inside a $6.2 million market cap.