Pura sells Morocco stake for US$230 million

ura Vida Energy NL, the Perth-based African oil explorer, has sold a 52 per cent stake in a Moroccan offshore prospect to diversified US miner Freeport-McMoRan Copper & Gold Inc for $US230 million.

Pura will keep $US15 million for itself, while as much as $US215 million will go into the Mazagan project, about 100 kilometres off the coast of Morocco, Damon Neaves, the company’s managing director told DataRoom.

Trading equity for future funding is typical in the oil industry, especially with oil explores who do not have the financial resources to exploit a potential field. Gilbert + Tobin’s Chris Flynn and Chris Dalton advised Pura.

Neaves says Pura’s stake in the Mazagan permit will drop to 23 per cent from 75 per cent as a result of the deal.