Advertisement

Fastnet secures option to farm into Deep Kinsale Prospect

AIM-listed Fastnet Oil & Gas has agreed an exclusive option with PSE Kinsale Energy to farm into the Deep Kinsale Prospect beneath the oil producing Kinsale Head gas field.

AIM-listed Fastnet Oil & Gas has agreed an exclusive option with PSE Kinsale Energy to farm into the Deep Kinsale Prospect beneath the oil producing Kinsale Head gas field.

In an update issued on Thursday, Fastnet reported that a minimum of 500 square kilometres of three dimensional seismic was to be acquired in 2013.

Advertisement - Article continues below

The company reported that it would have the potential to drill in 2014 to earn a 60% working interest which could reduce to a minimum of 40% if Kinsale Energy chose to exercise certain back-in rights.

Under the terms of the agreement, the farm-in well could be drilled to a provisional depth of 8,000 feet subsea.

Upon completion and, if warranted, testing of the farm-in well is expected to earn a 60% working interest in the Deep Kinsale Sub-Area by funding 100% of all drilling and testing costs.

Cathal Friel, Chairman of Fastnet, said: "We are delighted to have added an exclusive option to farm into and potentially drill the Deep Kinsale Prospect in 2014. It represents an attractive addition to our Irish portfolio as we have long held a belief that Deep Kinsale offers the potential to yield up another significant hydrocarbon discovery offshore Ireland.

"This belief has been further strengthened by the successful appraisal of Barryroe in 2012, which is geologically analogous to Deep Kinsale. We greatly look forward to working in close cooperation with our colleagues at Kinsale Energy, as we collectively seek to de-risk the prospect for drilling."

Shares in Fastnet Oil & Gas rose 1.98% to 25.75p at 11:50 on Thursday.

MF

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
Can Rishi Sunak save the economy with stamp duty cuts and half-price meal deals?
UK Economy

Can Rishi Sunak save the economy with stamp duty cuts and half-price meal deals?

John Stepek runs his eye over the chancellor's £30bn stimulus package and asks if it's enough to get the economy back on its feet after months of lock…
9 Jul 2020
A first-half home run for investment trusts
Sponsored

A first-half home run for investment trusts

The investment trust sector has seen some extraordinary performance in the first half of this year. Max King looks at what's behind it, and asks: is i…
7 Jul 2020