We maintain our RENAV of A$1.42/share.

Since initiating on Pura Vida (PVD) on 26 May 2015, the company has commenced drilling of the MZ-1 well, offshore Morocco. Only three weeks into a minimum 60-day well, the stock has fallen by more than 30% and appears oversold on volatility driven without newsflow. Without doubt the MZ-1 is a high-risk well, but PVD is fully carried by an accomplished operator in Freeport that is currently executing a thorough and wellplanned well. We maintain our RENAV of A$1.42/share.

Results expected no earlier than late July

The MZ-1 well, in 2,176m of water, has a primary total depth (TD) of over 5,000m, is targeting up to five stacked Cretaceous and Jurassic targets and is estimated to cost c US$137m, fully carried by Freeport-McMoRan Oil & Gas. Drilling commenced on 1 June and is scheduled to take two to three months. As such, after three weeks of drilling, the well will not be anywhere near any zones of interest. The well is targeting five discrete plays with PVD-assessed mean gross unrisked prospective resources of more than 1.4bnbbls.

http://www.oilvoice.com/n/Pura-Vida-Energy-Reaction-to-drilling/437ffb05634f.aspx