Pura Vida Energy has taken over operatorship in the Ambilobe block, offshore Madagascar, east Africa, following the withdrawal of Sterling Energy from the license.
The move means Pura Vida now also has 100% interest in the license and means additional strategic options will be available, the firm says.
Pura Vida has also renegotiated the terms of the work commitments under the production sharing contract (PSC). The PSC is in Phase 2, which has been extended to January 2017, although all work commitments have been completed. Pura Vida has the choice to move into Phase 3, which would commit it to drilling one exploration well before 2021.
Pura Vida says it is moving towards a drilling phase on the block and as been assessing newly acquired 3D seismic data. A competitive farmout process will be started to fund the drilling.
Pura Vida says it aims to mature all exploration prospects in the portfolio and to promote drill ready candidates ahead of the farmout campaign.
Managing Director, Damon Neaves, said: “We are pleased to acquire 100% of the project and take over operatorship. The additional interest together with the new PSC terms opens up the potential to significantly enhance the value of the block to Pura Vida.”