Pura Vida seeking partners for Loba development
Pura Vida Energy, an Australian oil and gas company with operations offshore Africa, is working to develop its assets in the Nkembe shallow block, offshore Gabon.
The company holds a 100 percent stake in Nkembe production sharing contract, which contains the Loba oil discovery (141m gross oil column).
In its presentation on Tuesday, the company said the Loba development could actually benefit from the difficult oil and gas markets, as the rig drilling rates are now low, and idle production units are available.
However, despite the ‘cheap’ services, Pura Vida cannot do it alone, as it said its core objective is to secure funding via a farmout deal, which will enable a near-term drilling program to commercialize the Loba oil field and other prospects withing the Loba complex. It said it was in discussions with potential partners to fund the drilling program including appraisal and testing of the Loba oil field.
It said it was in discussions with potential partners to fund the drilling program including appraisal and testing of the Loba oil field.
In the case of drilling success, Pura Vida would require additional cash to proceed with any development. The company said it might look at industry partnership again, or consider debt or equity funding alternatives.
The company is looking at fast-track development of Loba accelerating the timetable to first production and generating early cashflow. Pura Vida has envisioned using a mobile offshore production unit for the Loba oil field development.
More precisely, the company would use a jack-up drilling rig converted to a production facility, which is expected to shorted the Loba development cycle time to first oil. This would allow for first oil within a year from a successful production test.
According to Pura Vida, Loba field could contain 2c recoverable resources of 11.5 million barrels of oil, with a significant upside to more than 30 mmbo if other nearby prospects are included.
Offshore Energy Today Staff