Fastnet to name Morocco beneficiary

Fastnet Oil & Gas is set to name a farm-out partner for its offshore Morocco interests in the next fortnight, and one for its Celtic Sea interests within the first quarter of 2014.

The Dublin-based explorer yesterday announced the raising of £10m (€12m) via a successful share placing.

That money will initially go towards funding Fastnet’s participation in the exploration well being drilled in the Foum Assaka licence area off the coast of Morocco until its farm-out agreement is concluded.

Thereafter, funds will go to supporting development work on onshore assets in Morocco which, according to a recent independent survey, could hold over 310bn cu ft of gas and be worth nearly €45m to Fastnet.

Fastnet is fully funded up to the end of 2014.

It recently announced that it had selected a preferred bidder — and had entered into an exclusivity agreement with the party — for the farm-out of its interest in Foum Assaka, which is due to be drilled in the first half of next year.

Formal completion of the farm-out is expected during the first quarter of 2014. The deal should leave Fastnet with around a 10% stake in the asset, having owned nearly double that amount.

Fastnet plans to prove commerciality at each of its licences — in Morocco and Ireland — before selling them and returning the proceeds to shareholders. It hopes to sell out of the Foum Assaka prospect first.

“Fastnet has a strengthened balance sheet and is focused on delivering value to shareholders,” said managing director Paul Griffiths.