Pura Vida Energy has entered into a farm-in agreement with Sterling Energy to acquire 50 per cent stake in the Ambilobe oil block offshore Madagascar
The block is located north of the ExxonMobil-operated Ampasindava Block. Sterling Energy will retain operatorship and the remaining interest on the block.
Under the agreement, Pura Vida Energy is expected to reimburse US$1.25mn in back costs to the UK’s Sterling Energy for the oil block and fund the acquisition and processing of 1,000km of 2D and 1,250 sq km of 3D seismic data targeting substantial anticlinal and salt related prospects up to a maximum cost of US$15mn.
The Australian-listed oil explorer said that the Ambilobe Block has a variety of plays, relating to salt, with potential for large oil discoveries. New seismic data will now be acquired in the area, the firm added.
According to Pura Vida Energy, the large onshore discovered oil play extends into the offshore Ambilobe Block due to the oil seeps on the eastern block boundary.
