Pura Vida still hunting for Nkembe rig

Pura Vida Energy is moving ahead in its efforts to provide funding for the drilling program at the Nkembe block offshore Gabon for which it is still looking for a drilling rig. 

Pura Vida informed on Tuesday that its funding efforts in relation to the drilling campaign at Nkembe is progressing well, with a number of industry members active in both the electronic and physical data-rooms.

The company expects to be embarking on commercial discussions in the coming weeks.

The company has also received interest from private equity funding partners, based both in Australia and internationally and it will continue to discuss commercial terms with interested parties as it moves to secure a funding partner.

According to its statement, the company’s confidence in the project potential and outlined plans to develop the field appear to have been validated by the interest from both industry and project investors.

Term sheet with jack-up rig contractor

As reported on January 19, 2017, Pura Vida entered into a conditional term sheet with a rig contractor to fund the provision of a jack-up rig to complete the anticipated program at Nkembe later this year.

The term sheet was conditional upon the parties entering formal agreements in relation to the transaction; receipt of all necessary government and regulatory approvals for the transaction and the anticipated drilling campaign on Nkembe; and Pura Vida securing funding for the balance of the drilling campaign.

In discussions with the Gabonese Government, the drilling plan has been outlined and the company said it is continuing to engage with government and the regulatory authorities in Gabon to progress the necessary approvals to drill Nkembe.

The rig contractor and Pura Vida had agreed to enter into formal agreements for the planned 3 well program however the timeframe for completing and executing formal agreements has now expired. The parties have determined not to extend the date by which formal agreements were to be entered and have ceased negotiations.

In these circumstances, the company has engaged with other rig contractors and companies in the region and is confident of securing a suitable rig to complete the planned drilling program at Nkembe.

Following an announcement in March that the employment of Pura Vida’s Chief Executive Officer Damon Neaves ceased, the company has now informed that Neaves has now also resigned from his position on the board of Pura Vida.