Fastnet exits oil and gas business

Fastnet Oil & Gas has become the first Irish casualty of the sub-$50 oil price environment; opting to exit the sector in favour of investing in the healthcare/ biopharmaceutical industry.

The company is proposing a name change to Fastnet Equity and to channel its near $16m (€14m) warchest into pharmaceutical deals. It has exploration assets offshore Morocco and Ireland. Shareholders will vote on the proposals at an EGM in London on August 28.

“In light of the current economic climate within the oil and gas sector, the board has determined that it is not in the best interests of shareholders to either pursue mergers and acquisitions opportunities in that sector or to expand further resources on the company’s existing oil and gas assets,” the company said.

“The board believes that the healthcare industry, particularly the biopharmaceutical sector, is experiencing strong momentum and there exist significant mergers and acquisitions and value-creation opportunities for both small cap and large cap companies.”

Fastnet had looked at a number of oil targets, but ultimately did not identify viable opportunities. It said it has already received “certain unsolicited approaches with respect to opportunities outside the oil and gas sector”.

With regard to its current assets, Fastnet is proposing to surrender its share of the Foum Assaka licence, offshore Morocco, and to try to dispose of its Celtic Sea assets.

Oil industry veteran Carol Law, who took over as Fastnet’s CEO late last year, will exit the company if approval is granted.