Aussie independent Pura Vida Energy has farmed out a 15% stake in a deepwater block offshore Morocco to Houston-based Plains Exploration & Production Company (PXP) that contains a prospect with estimated reserves of 1.5 Bn bbl of oil.

The farmout for an upfront payment of US $15m also secures funding for a multi-well drilling programme in the 2.7MM acre Mazagan permit in the Essaouira Basin, up to a maximum of $215m, including a firm commitment to fund and drill two exploration wells.

African-focused company Pura Vida said PXP would acquire a 52% interest in the permit and become operator. Completion of the transaction is expected during the first half of this year, and is subject to customary closing conditions, including approval by the Moroccan government.

PXP will fund 100% of the costs of various exploration operations up to the greater of agreed AFE costs or $200m, subject to a maximum of $215m. The carried costs include the drilling of two wells, including one primarily targeting the Toubkal prospect, with another targeting a prospect to be mutually agreed. The costs may also include any sidetrack of either of the two firm wells, any deepening of either, and any 3D seismic survey over an area of up to 2,500sq km. The carried costs to be funded by PXP include state oil company ONHYM’s 25% share of exploration costs.

Pura Vida’s Managing Director, Damon Neaves, said: “This will allow us to test independent play types, which significantly increases our chance of success. These wells will test the multi-billion barrel potential of Mazagan. This transaction secures the funding and expertise required for drilling in our deepwater block. This is a giant leap forward for Pura Vida.

Amongst the Mazagan joint venture and our nearest neighbours, we expect at least five exploration wells in the locality of Mazagan to be drilled in 2014. This represents an unprecedented investment in exploration offshore Morocco, which will target significant resources and has the potential to alter the energy landscape in Morocco.”

The Toubkal prospect has a mean resource potential of 1.5 Bn bbl and is expected to be drilled in 2014. PXP says the permit includes numerous Mid Miocene and Lower Cretaceous prospects identified based on recently reprocessed 3D seismic data.

An independent resource assessment completed by DeGolyer and MacNaughton in September last year estimated the gross unrisked mean prospective recoverable resources at more than 7 Bn bbl, including Toubkal.

Based on drilling plans by Genel (one well), Cairn (two wells) and Kosmos (two wells) in adjacent permits in late 2013/early 2014, it is likely that Plains will also drill using the same rig in this timeframe.

Recently Chariot Oil and Gas made a country entry to the north and additional permits are likely to be granted in the near term, it is understood.