Plains Exploration Signs Agreement for Offshore Moroccan Project; Shares Flat Late After Hitting Year High
Plains Exploration & Production Company ( PXP ) has entered into a definitive agreement to participate in Mazagan permit area offshore of Morocco. Subject to customary closing conditions including the receipt of Moroccan governmental approvals, PXP will make a cash payment of $15 million to farm-in to Pura Vida Energy's 75% working interest in the 2.7 million acre Mazagan permit area.
PXP will earn a 52% working interest and act as operator in exchange for funding 100% of the costs of certain specified exploration activities that will include a commitment to fund and drill two wells, and if agreed, various additional exploration operations subject to a maximum of $215 million.
PXP shares are unchanged after hours at $47.50, after establishing a new year top of $48.00 during the regular session.
The first exploration well will primarily target the Toubkal prospect and is expected to be drilled in 2014.
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