WASHINGTON (dpa-AFX) - Plains Exploration & Production Co. (PXP) announced it has entered into a definitive agreement to participate in the significant and highly prospective exploration play offshore Morocco.
Subject to customary closing conditions including the receipt of Moroccan governmental approvals, PXP will make a cash payment of $15 million to farm-in to Pura Vida Energy's (PVD.AX) 75% working interest in the 2.7 million acre Mazagan permit area offshore Morocco.
PXP said it will earn a 52% working interest and act as operator in exchange for funding 100% of the costs of certain specified exploration activities that will include a commitment to fund and drill two wells, and if agreed, various additional exploration operations subject to a maximum of $215 million. The first exploration well will primarily target the Toubkal prospect and is expected to be drilled in 2014.
The Mazagan permit area lies off the coast of Morocco in the Essaouira Basin and includes numerous Mid Miocene and Lower Cretaceous prospects identified based on recently reprocessed 3D seismic data.
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