Speaking at the RIU Good Oil Conference this week, Pura Vida managing director Damon Neaves said the company had shifted its focus from wildcat exploration towards its Gabon development project, which he said could see the junior join the ranks of Africa's oil producers within 24 months.

While not a world-beater, Loba could be a highly profitable development with rapid payback that could lead to further discoveries in the offshore Nkembe block, he explained.

While the field is modest, Neaves said it is a viable operation at a $40 per barrel oil price, even at the P90 case of 7.7 million barrels, and of course it works even better at 16.5MMbbl (P10).

A lot needs to go right for Pura Vida to get to first oil, including identifying the right farm-in partner and completing a successful flow-test of the 1970s era discovery, but if that happens Pura Vida will be off to the races with plenty of exploration upside in the shallow water portion of the block.

Abandoned discovery

Loba-1 discovered a 140m oil column when drilled in the 1970s, but while good quality oil was recovered to surface, the initial production test had mechanical issues.

In the almost 50 years since there have been numerous advances in drilling and production techniques, including lateral wells, fracture stimulation and electric submersible pumps, and there are numerous offsetting fields that are similarly producing from the same Batanga and Anguille formations, all of which have substantially derisked Loba.

The Perth-based junior hopes to see similar flow rates as those enjoyed from the Barbier and Oguendjo fields, which are less than 10km away.

The major question has been whether a new well will flow at all after the failure of the Loba-1 test, but recent flow assurance work undertaken with Schlumberger has resolved those concerns, and Pura Vida is already well down the path of costing the feasibility study and development options.

"Somewhat ironically this had all been precipitated by the fall in the oil price," Neaves said.

"What that has resulted in is a significant change in oil field services, equipment, and a significant fall in rig rates."

Pura Vida says the vendors of services it needs are prepare to offer terms that not only allow delayed payment, but they are willing to take on risk.

Development

The development plan envisages two lateral wells linked to a mobile offshore production unit, with export through some of the nearby facilities.

There are MOPUs sitting around in North American yards that Pura Vida has assessed, and Neaves believes full field production of 4000-1000bopd can be established within 12 months of a successful flow test.

The net present value on the Loba field is between $US37 million, while the Loba Complex could be valued at $337 million once Loba East and Loba Deep are included.

Neaves said the aim is to find a partner willing to drill Loba-2 to flow-test the existing Batanga discovery and then deepen the well to test the adding 6-16MMbbl Loba Deep prospect in the Anguille level.

From there next obvious step would be to drill an appraisal well to test the 5-18MMbbl potential in the Loba East structure.

"We see that [Loba East] as a prospective resource, almost an appraisal opportunity," Neaves said.

"It is separated by a fault, but if we are successful at establishing a flow out of Loba that there is a high degree of confidence that Loba East will work."

Pura Vida believes Loba East shares a common water contact with Loba, and that the only real risk is finding a valid trap as Gabon is an oily province with good regional seals.

All told, the Loba Complex has a mean 34MMbbl recoverable potential, which will breakeven at $US40 per barrel at the low side, although other operations offshore Gabon have a breakeven price of just $US25/bbl.

In the success case, Pura Vida sees that even on the low side and conservative costs, the payback could be less than 12 months.

While the company needs to have the primary permit term extended by one year, Neaves said the Loba drilling opportunity required a low-cost jack-up rig, which are not in short supply at the moment.

Exploration

Beyond Loba are around 10 stacked prospects, all in less than 50m of water, including the mostly pre-salt potential for 470MMbbl in the Palomite Cluster area and 1.47Bbbl in the Mouveni Cluster area, and smaller potential post-salt accumulations at Cubera, Barracuda and Kingfish of around 22-27MMbbl, although the favoured exploration target is Lepidote Deep.

The post-salt prospect sits just a few kilometres away, between Loba and Oguendjo and has a mean potential of 65MMbbl across the Batanga, Anguille and Cap Lopez formations, with a range of 25-114MMbbl.

While Lepidote Deep is undrilled, there was a well into a shallower structure that had oil shows, but at the time the deeper four-way dip closure was not recognised.

Success at Loba could open up a development hub in the block taking in the numerous near-field opportunities in the shallow water prospects where seismic seems to show DHIs on faulting, similar to other nearby discoveries, Neaves said.

Beyond Gabon, Neaves said Pura Vida was hoping to find an accommodation with Freeport and the Moroccan government, and it is hoping to find a replacement partner in its 100%-owned blocks offshore Madagascar with a farm-in set to commence later this year.