We are expected to put our hands in our pocket, yet we are not...

We are expected to put our hands in our pocket, yet we are not fully informed as to what is happening with Freeport.

The Company announced on 12 February 2016, that it has written to PXP Morocco B.V. (PXP) (a subsidiary of FreeportMcMoRan Oil & Gas) reserving its rights under the farmin agreement and joint operating agreement in relation to the second well obligation in the Mazagan permit. The joint venture parties are in discussions and timely resolution of this matter is an important priority for the Company.

So what's to be resolved?

This certainly implies that the Freeport deal is off the rails but it doesn't spell out the situation. The last definite information on the Mazagan permit was that Freeport was committed to a second well before September 2016.

This on 11 August 2015

Under the farmin agreement between the Operator and Pura Vida entered into in January 2013, the drilling of the second well must be commenced by no later than September 2016. If the joint venture is successful in securing a drillship at a lower rate, the risk of the cost of the two wells exceeding the US$215 million limit on carry under the farmin agreement will be reduced. This will also have the benefit of reducing Pura Vida’s reliance (if any) on the option for an additional carry in excess of the US$215 million limit, thereby reducing the risk that Pura Vida’s equity in the permit will be diluted.

Now we have written to Freeport and we are raising capital without knowing what is happening and why?

Cheers all