Morocco and oil explorer Pura Vida Energy (ASX:PVD) took centre stage today as it unveiled a major resource upgrade.
In a feature article on Proactive, a major new resource estimate for its Mazagan permit off the coast of Morocco was revealed.
The area 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 doubles 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.
Managing director Damon Neaves told investors: "Pura Vida has several prospects with an estimated chance of success of around one in three.
"Given the scale of these prospects coupled with our high equity position, Pura Vida has a unique opportunity to generate extraordinary value in the farmout and drilling campaign."
Analyst Jack Allardyce, at house broker N +1 Brewin, said he would be watching the farm out process with interest, describing such a deal as a "major value point" for the firm.
"We continue to believe that there is potential for near-term high impact events, in particular farmout negotiations and acquisitions," he said, maintaining a 'buy' stance on the shares.
He also noted that the "read-across" values from farm-ins on adjacent acreage imply that the company could justify a significantly higher valuation for its acreage than at present.
He highlights that Genel (LON:GENL) farmed in to Sidi Moussa, offshore Morocco, for a 60 per cent interest for $1.3 million plus $50 million capped well costs, while Cairn Energy (LON:CNE) farmed in to Foum Draa for a 50 per cent interest in consideration for $1.5m plus $60m well costs.
Also in oil, Nighthawk Energy (LON:HAWK) said the John Craig 6-2 well on the company’s Jolly Ranch project in Colorado tested commercial oil from the Cherokee shale formation.
A continuous 24 hour flow test yielded over 600 barrels of crude and work is now underway to put the well into permanent production.
Three further potential oil-bearing zones were “clearly identified” during drilling, but have not yet been tested, Nighthawk revealed.
The group confirmed the next well, Pike's Peak Williams 4-30, is “proceeding to schedule”.
Chairman Stephen Gutteridge said: “The results from the John Craig 6-2 represent a very positive start to our new well drilling programme, and the well is expected to significantly step-up our current production levels.
From black gold to diamonds, broker Northland Capital this morning repeated its buy advice and 10.2 pence a share price target on Stellar Diamonds (LON:STEL) after an upbeat presentation from the group.
Analyst Ryan Long pointed out that an exploration programme that was slated to take a year has been completed in just six months and is expected to deliver a significant resource uplift.
The results to date have been encouraging and point to a potential one million carats to be added to the company’s two key projects – Droujba in Guinea and Tongo in Sierra Leone.
Shares in Stellar Diamonds were unchanged today, at 3.13 pence.
Conversely, DiamondCorp (LON:DCP) shares surged more than 21 per cent today after the group struck a financing deal that will meet more than three-quarters of the costs of its Lace mine in South Africa.
The Industrial Development Corporation has agreed to lend DCP U$26.7 million, which will be used to develop a 1.2 million tonne a year block cave mining operation at the company’s 74 per cent owned Lace mine.
Chief executive officer Paul Loudon said: "I am very pleased that the terms of the IDC loan facility have been finalised amid difficult market conditions.
"This represents a major milestone for our company's transition from developer to a medium-sized diamond mining company, and we look forward to finalising the balance of our project funding requirements as soon as possible."
DiamondCorp has agreed to raise a further US$12.1 million prior to the initial drawdown of the new Lace facility.
In other news, Regency Mines’ (LON:RGM) said it was ready to start exploring its Fraser West acreage, which it says is located in one of the most active areas in Australia.
Meanwhile, gold explorer Hummingbird Resources (LON:HUM) believes it is now “on the brink” of building one of the first gold mines in Liberia.
It said the past year had been a “very exciting time” for the company as it now finds itself in a privileged position. Shares rose 1.40 per cent, to 109 pence.
Mobile software firm Globo (LON:GBO) posted an 85 per cent increase in pre-tax profit in its first half as it continues to build its international business.
The firm said it was developing new products and generating significant recurring revenues with high profit margins.