Pura Vida shareholders buy into new direction (literally)
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Special Report: The market has responded positively to Pura Vida Energy’s (ASX:PVD) new direction, with the stock gaining more than 47 percent.
In case you missed it, last Thursday Pura Vida told the market that it had decided to switch focus from its assets in Africa and focus on lower-cost opportunities in Poland with exploration upside.
It is earning into two main assets in Poland, the Gora and Nowa Sol licenses.
Pura Vida will be taking a 35 percent stake in the licenses in return for a $6.15m spend.
In exchange for the spend, Pura Vida will participate in a frack and flow test of the gas-oriented Siciny-2well on the Gora license, and the oil-oriented Jany-C1well on the Nowa Sol license.
At Siciny-2, it will be aiming to prove up a 2C contingent resource of 1.6 trillion cubic feet of gaswith a two-stage frack job followed by a flow test in Q4 this year.
At Jany-C1, it will be aiming to prove up a 2C contingent resource of 36 million barrels of oil with a single-stage frack with a flow test in early 2020.
Contingent resources are known, potentially recoverable volumes with a development plan that is not yet commercial.
Contingent Resources are rated as 1C, 2C and 3C according to low, best and high estimates.
The market has seemingly reacted with good cheer to the announcement, with Pura Vida’s share price going from 1.7c to 2.5c immediately following its suspension from a trading halt last week.
While shares in Pura Vida have pulled back since (2.2c at the time of writing), it’s still validation of the change of direction for the company.