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UK: +44 (0)207 989 0813 NA: +1 646 896 3065 AU +61 2 9222 2832 [email protected] www.proactiveinvestors.co.uk Pura Vida Sep 25th 2012 Pura Vida: Brokers raise price targets following major new resource estimate Brokers have rushed to increase their target price for Morocco-focused oil explorer Pura Vida Energy (ASX:PVD) after a major upgrade to its resource estimate last week. Price: A$0.7 Market Cap: A$36.56M 1 Year Share Price Graph On Friday, the firm said the offshore Mazagan permit now has total mean prospective resources of 7 billion barrels, with 5.3 billion barrels net to the company, with its 75 per cent interest. This more than doubled the company's previous net estimate - of 2.4 billion barrels. What's more, the chance of success across the prospects reviewed have increased to 34 per cent, from 19 per cent previously. The release of the upgrade represents a huge boon to the firm, as it plans to commence a formal farm-out process on the asset later this year to secure funding for drilling - at a time when there is huge interest in oil exploration offshore Morocco. The upgrade was conducted MacNaughton (D&M). by independent group DeGoyler and Share Information Code: PVD Listing: ASX Energy Sector: Website: www.puravidaenergy.com.au Company Synopsis: It provides estimates for 13 prospects, including three new targets - Tafraoute, Amtoudi East and Amtoudi West. Combined these three add 2.1 billion barrels of oil equivalent to the total resource and each have a 32 per cent chance of success. Also, the firm's giant Toubkal prospect alone has been handed a mean resource potential of 1.5 billion barrels and given a 31 per cent chance of success. House broker N +1 Brewin rates the stock a 'buy' and has increased its target price to A$2.25 from A$0.87. Pura Vida Energy has a 75 per cent interest in the Mazagan Offshore Area. Mazagan is located off the coast of Morocco in the Atlantic. We have modern, high quality 3D seismic data over the block with independently certified potential resources of more than a billion barrels of oil. The Toubkal prospect alone has a potential resource range of 180 million to 1. [email protected] "Following the farm-ins of Genel and Cairn to adjacent acreage, PVD will commence its farm out process at the start of October. Given these deals and the entry of Total, Anadarko and Kosmos to Morocco we would expect significant industry interest," said analyst Jack Allardyce. Last week, Allardyce noted that the "read-across" values from farm-ins on adjacent acreage imply that Pura Vida could justify a significantly higher valuation for its acreage than at present. Broker Hartleys, which also rates the stock a 'buy' has increased its target price to 188 cents per share, from 113 cents previously. It reckons it is safe to assume that the company will achieve a farm-out, given factors, such as the quality of the acreage and the size of the prospects, that will result in drilling within 18 months or possibly sooner. Meanwhile, Foster stockbroking has initiated coverage with a 'speculative buy' rating and an initial target price of A$1.50 a share. www.proactiveinvestors.co.uk www.proactiveinvestors.com www.proactiveinvestors.com.au www.proactiveinvestors.de www.proactiveinvestors.com.hk United Kingdom North America Australia Germany China Proactive Investors Ltd The Business Centre Wool House, 74 Back Church Lane London, E1 1AF United Kingdom Company No. 05639690 VAT No. 87207082 It says there are some significant high impact catalyts which should continue to drive the share price upward. "These include results from a drop core program which will test for presence of hydrocarbons on the sea bed and the commencement of a farm-out process, all of which are expected to occur by the fourth quarter of calendar year 2012," it said. Pura Vida shares were last trading up 4.29 per cent, at A$0.730. Proactive Investors facilitate the largest global investor network across 4 continents in 4 languages. With a team of analysts journalists & professional investors Proactive produce independent coverage on 1000's of companies across every sector for private investors, private client brokers, fund managers and international investor communities. Contact us +44 (0)207 989 0813 [email protected] No investment advice Proactive Investors is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). 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As markets change continuously, previously published information and data may not be current and should not be relied upon. www.proactiveinvestors.co.uk www.proactiveinvestors.com www.proactiveinvestors.com.au www.proactiveinvestors.de www.proactiveinvestors.com.hk United Kingdom North America Australia Germany China Proactive Investors Ltd The Business Centre Wool House, 74 Back Church Lane London, E1 1AF United Kingdom Company No. 05639690 VAT No. 87207082