Report

Update: Exploration value benchmarks

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.
Underlying
PURA VIDA ENERGY NL

Pura Vida Energy is an Australian-based African oil explorer. Co. has three reportable segments, being an interest to explore for oil in acreage known as the Mazagan permit, offshore Morocco; the Nkembe block, offshore Gabon; and the Ambilobe block, offshore Madagascar.

Provider
Edison Investment Research
Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

.

Other Reports on these Companies
Other Reports from Edison Investment Research

ResearchPool Subscriptions

Get the most out of your insights

Get in touch