Fastnet upbeat on drill costs

Fastnet Oil & Gas has said that although results were disappointing, the direct net exploration costs incurred by the company, from recent maiden drilling work at its interests offshore Morocco were less than $2.75m.

Its share price spiralled by 50% earlier this month after the first, albeit high-risk well, to be drilled in the highly-rated Foum Assaka licence was abandoned after failing to encounter commercial hydrocarbons.

However, costs incurred by Fastnet were generally low and the Irish company remains confident of finishing this year with around $40m in the bank; after it signs off as expected on its planned two-stage farm-out process with a development partner relating to its Celtic Sea assets later in the summer. The licence is being operated by US explorer Kosmos Energy.