Farm out partner must happen before the year is out for the...

Farm out partner must happen before the year is out for the share price to hit 80cents+ in my opinion. I don't think a resource upgrade would be enough to let the share price run that high (as much as I would love it too). Today's markets are tough and investors are stubborn. Too many company's these days are claiming massive targets and delivering dusters or failing to farmout. However, with that said, PVD is different. There is STILL a lot of value and a lot of money to be made via PVD and I still see it as a buy at these levels; definitely a medium term investment.

Regarding the farmout, Damon Neaves seems confident that a farm out partner will be locked down before Christmas and sees the 3D seismic as the key driver that will attract some big players (as many posters have noted). Straight from the horses mouth:

"In the tradition of oil and gas executives, Pura Vida's chief executive and ex-lawyer Damon Neaves exudes confidence: “We're confident of finding a partner to develop the field by Christmas. We're setting up a data room on 1 October and we've got a number of groups interested.”"

http://www.smh.com.au/business/under-the-radar/oil-and-gas-exploration-the-place-to-be-for-speculators-20120905-25dhf.html

Come 1st October, we should expect an announcement stating the data room is open. Resource upgrade aside, this is when we will see even more volume come through PVD as more and more people become aware of the assets we have AS WELL as the technical data to go with it.

It is not enough to have a great permit. Look at WHN who has some massive acreage in the Seychelles; they were unable to farm out in 2011 because the permit wasn't de-risked via seismic interpretation etc... although they had a lot of interest, and although they had a lot of positive media coverage in 2011, no one was willing to talk with their wallets. A successful farm out partner for WHN in 2011 would've set the share price on fire..

..now if we look at PVD who have 3D SEISMIC for a third of their acreage AND they are doing a drop core to de-risk the project.. all this makes their permit much more attractive for potential partners... the smart investors, and the rush of investors in recent weeks, know how expensive 3D seismic is and PVD already have that which I believe has been a driver for the share price also..

PVD has also some great personal assets on board.. Other than Damon who i rate very highly so far (keeping shareholders informed consistently) David Ormerod, the Technical Director has had 8 years (in total) experience as a geologist at Woodside and BHP....a wealth of knowledge..

From a shareholder perspective, we have some cash in the bank to last us and a tiny amount of shares on issue.. I can't help but agree with Don that, so far, PVD is "performing beautifully".


Robs15.