Special Report: Pura Vida Energy’s European adventure is ready to begin with the testing of a 1.6 trillion cubic feet of gas (TCF) target in Poland.

Pura Vida (ASX:PVD) has recently pivoted away from its offshore licences in Africa and into Europe, taking a 35 per cent stake in the Nowa Sol and Gora onshore oil and gas concessions in Poland.

The 1.6TCF target will be tested with a re-entry of the Siciny-2 well on the Gora licence.

It told its shareholders this morning that it had received tenders for the work from major service companies including Schlumberger and Halliburton, which have a presence in the promising area.

Service tenders for the operational workings are open until the middle of this month, with the finalisation and approval of the well plan expected the month after.

All going according to plan, it should be in a position to start work in October with data from flow tests available in November.

Meanwhile, Pura Vida is planning on re-processing seismic data for the conventional target at Gora. It’s also in negotiations with the licence holders at the neighbouring Rawicz field to grab data from there, too.

(Supplied)

“The PVD board is delighted by the progress GRL [the operator] are making for the planned Q4 2019 Siciny-2 well testing the 1.6 TCF gas target,” Pura Vida executive director Nathan Lude said.

“Gas pipeline infrastructure is located within 500m of the Gora project area and if commercial flow rates can be established via the well re-entry, PVD will have established a significant opportunity in a country that has substantial gas demand.”

The Polish natural gas market is shaping as one of the most prospective on the continent, as the country attempts to lessen its reliance on gas from Russia.

Poland is the only sizeable country in the EU which has recorded continuous annual gas consumption increases over the past few years, and the forecast is for more to come.

Natural Gas Consumption in Poland (Billions M3 per year)

Behind the European pivot

Earlier this year Pura Vida announced a new-found focus on European gas and following shareholder approval will be renamed Ansila Energy NL, pivoting away from its previous focus on offshore Gabon.

With the Gabonese licence caught up in a dispute with the government thereand it waiting for a farm-out partner in Madagascar, management made the decision to delve into a project with near term development opportunities.

While it’s testing a 1.6TCF target with Siciny-2, it’s also aiming to prove up a 2C contingent resource of 36 million barrels of oil at the nearby Jany-C1 well — with a frack and flow test scheduled for the first quarter of next year.

The two licences have had $45 million into the ground previously, and one of the architects of the Polish pivot, Chris Lewis,previously told Stockhead previously that the near-term development was attractive for the company.

“We’re piggy-backing on $45 million which has already been spent, and we believe we’re coming in right at the end and scoring a goal in injury time,” he said.

Investors so far, have liked the move from Pura Vida — its share price spiked by 47 per cent on the day the shift was announced.

Its shares are also still up 11 per cent compared with the pre-Poland period.

 

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This story was developed in collaboration with Pura Vida Energy, a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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