Last year's top float, Pura Vida Energy, announced today it would farm-out a 52 per cent stake in its Mazagan permit in Morroco for $US15 million in cash and up to $US215 million worth of exploration work.
Under the terms of the farm-out deal, Houston-based PXP would take a 52 per cent stake in the permit and become project operator funding exploration including two exploration wells.
Pura Vida's managing director Damon Neaves said the company was pleased to welcome PXP as operator and our co-venturer in the Mazagan permit.
"PXP brings extensive offshore exploration and development experience to the venture, and has made a firm commitment to fund and drill two exploration wells," he said.
"This will allow us to test independent play types, which significantly increases our chance of success.
"These wells will test the multi-billion barrel potential of Mazagan."
The first well in the program will target the Toubkal prospect, which has a mean resource potential of 1.5 billion barrels, in 2014.
Pura Vida took the honours for the best initial public offering on the ASX last year.
After listing at 20 cents on February 14 and battling a sluggish start, Pura Vida rose steadily in the second half to end 2012 at 79.5 cents - a 297 per cent increase on its IPO price. The rise came despite Pura Vida following up its $4 million IPO with a $3 million equity placement at 25Â¢ in July and raising $5.95 million at 70Â¢ in November.
Pura Vida shares were off two cents, or 2.44 per cent, to 80 cents at 11.10am after the news.