Back to top

Analyst Blog

Zacks Equity Research

PXP Expands Global Footprint

XOM

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Plains Exploration and Production Company has entered into an agreement, worth $15 million, with Pura Vida Energy (“PVD”) to participate in an exploration play based in the Mazagan permit area of the offshore Morocco. Closure of this contract is subject to the Moroccan government approvals.

Per the contract, Plains Exploration and Production will get a 52% working interest to operate in the 2.7 million acre Mazagan permit area and rights to carry out some specific exploration activities. In addition, the company is expected to drill two more wells and carry on additional exploration activities in this area in the future subject to an investment of up to $215 million. The first well will mainly target the Toubkal prospect and is anticipated to be drilled in 2014. The second exploration well will target a prospect, which will be mutually agreed upon by both the parties.

Australia-based Pura Vida Energy is building a portfolio of high quality assets in Africa. Currently, the company operates in the offshore Morocco with strong resource prospects deriving full funding from a multi-well drilling program.

The Mazagan permit area is located at the coast of Morocco in the Essaouira Basin. Per the recent 3D seismic data, it has a number of mid Miocene and lower Cretaceous prospects. Another source indicates that this area can generate gross unrisked mean prospective recoverable resource of over 7 billion barrels, including 1.5 billion barrels from the Toubkal mid Miocene prospect.

At present, global oil and gas companies are teaming up with local players to discover unexplored reserves in Asia and Africa. In December 2012, oil and gas industry major ExxonMobil Corporation (XOM - Analyst Report) entered into a contract with an affiliate of Impact Oil and Gas Ltd. for the exploration of oil at the coast of South Africa. Per the agreement, ExxonMobil will take over a 75% stake in the Tugela South Exploration Right from Impact.

This contract is Plains Exploration and Production’s first major venture outside the U.S. The company had a cash balance of $217.0 million as of September 30, 2012, and cash from operating activities of $415.6 million in third-quarter 2012. Plains Exploration and Production’s financial comfort lends it enough support to sign a foreign-pact, which will subsequently enable the company to strengthen its international presence.   

Houston, Texas-based Plains Exploration and Production Company, engages in acquisition, development, exploration and production of oil and gas properties, primarily in the U.S. With a market capitalization of $6.13 billion, the company having 880 full time employees has a short-term Zacks #3 Rank (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
GENERAL FINA GFN 8.20 +5.67%
QIHOO 360 TE QIHU 91.57 +4.38%
VIPSHOP HOLD VIPS 140.01 +3.49%
INVESTMENT T ITG 19.16 +3.34%
VERTEX ENERG VTNR 7.38 +3.07%