Fastnet sales rise amid encouraging oil surveys

Shares in Irish exploration firm, Fastnet Oil & Gas jumped nearly 6% yesterday, on the back of it revealing that initial result readings from 3D seismic surveys of its Celtic Sea assets have identified 22 “structures”, or indications of oil.

Fastnet commissioned the seismic survey of its ‘Mizzen’ and ‘Deep Kinsale’ prospects — the largest carried out in Irish waters for nearly half a century — last year. Yesterday it said the largest identified structure covers an area of 110sq metres underneath the Kinsale Gas Field.

Fastnet — whose ultimate goal is to separately sell its various interests in Ireland and Morocco, upon proof of commerciality, and return the proceeds directly to its shareholders — has seen ‘farm-in’ investment interest, concerning its Celtic Sea, assets swell since last year and is hopeful of naming a development partner for its Irish portfolio later this year.

Fastnet’s managing director, Paul Griffiths yesterday noted that the 3D investment “is beginning to pay dividends, as the results are proving to be a catalyst stimulating industry interest in our licence portfolio”.

Elsewhere, Tullow Oil has agreed the $75.6m (€54.4m) sale of certain British gas assets to the British subsidiary of Norwegian company, Faroe Petroleum. Addressing the AGM in London yesterday, Tullow chief executive, Aidan Heavey, said sales and farm-down processes — of core and non-core assets — continue although transactions are taking longer than expected.