African Potential Appeals to Australian Companies
Untapped oil and gas resources in Africa are proving a major attraction for Australian-based companies searching the globe for new potential.
An increasing number of Australian companies have targeted Africa for investment in recent years as opportunities dry up at home.
Despite the fiscal and political risks that have historically surrounded the African resources industry, these companies have overlooked this reputation to combine the capital and technology required to realize the promise on offer.
A successful entrant last year was Pura Vida Energy NL, a Perth-based company founded by former Tap Oil Ltd. colleagues Damon Neaves and David Ormerod.
At a time when market sentiment was poor, Pura Vida raised $3.98 million (AUD $4 million) through its initial public offering (IPO) on the Australian Securities Exchange (ASX) when it listed in January 2012.
By the end of 2012, the company was widely regarded as the exchange's top performing IPO for the year as its value spiraled on the back of promising results at its Mazagan project offshore Morocco.
Pura Vida's faith in a somewhat unproven region was cemented in January when the company secured a $229.3 million (AUD $230 million) farm-out of the permit to New York-listed Plains Exploration and Production Company.
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