Morocco – Pura Vida

MAZAGAN PERMIT, OFFSHORE MOROCCO (PURA VIDA 23%, SUBSIDIARY OF FREEPORT-MCMORAN OIL & GAS LLC OPERATOR)
On 12 September 2016, the Company announced that it had entered into a conditional settlement with a subsidiary of Freeport-McMoRan Oil & Gas, PXP Morocco B.V. (PXP) in relation to the second well obligation under the farmin agreement with PXP. The agreement is conditional upon PXP and PVD reaching a further agreement (and obtaining any required approvals thereto) with the Office National des Hydrocarbures et des Mines (ONHYM), the regulator acting on behalf of the Government of the Kingdom of Morocco, in relation to the second well commitment under the Petroleum Agreement between ONHYM, PXP and PVD.
Under the terms of the settlement, PXP paid to the Company an unconditional and non-refundable deposit of US$ 1.5 million (A$2 million).
 The joint venture is in discussions with the regulator to finalise the matter and satisfy the conditionality for the completion of the PXP settlement.  The current exploration phase of the Mazagan permit is scheduled to expire mid-December 2016, accordingly the Company is seeking to resolve the matter as soon as possible.  Concluding the PXP settlement will deliver an important value outcome for Pura Vida.