Advertisement

Fastnet takes option on Moroccan prospect

Oil and gas explorer and producer Fastnet has acquired further exploration acreage in north-eastern Morocco.

Oil and gas explorer and producer Fastnet has acquired further exploration acreage in north-eastern Morocco.

Executing a $300,000 option agreement, AIM-quoted Fastnet has secured farm-in rights on eight exploration blocks covering an area of 14,548 square kilometres in the Atlas mountains' Tendrara basin.

Fastnet will gain 50% rights from local operator Oil and Gas Investments Funds (OGIF), with state oil firm ONHYM taking a 25% gross carry, as with all licences.

Advertisement - Article continues below

With its subsidiary Pathfinder Hydrocarbon Ventures acting as technical operator, Fastnet will need to fund the entire drilling costs of an appraisal or pre-development well on or before February 28th 2014 in order to complete its side of the deal.

The eight blocks have been independently assessed as having an important potential of gas and sit within a proven hydrocarbon system where existing gas discoveries have been made.

Fastnet's Managing Director Paul Griffiths said the company had already sourced a drilling rig for the well.

Once the well has been completed and equity interests in the licence have been transferred Pathfinder will provide OGIF with a $2.75mm irrevocable bank guarantee that will cover a potential withdrawal by Pathfinder.

This will be returned to Pathfinder by OGIF upon completion of a further work programme where Pathfinder is due to pay drilling costs for two further appraisal wells by April 1st 2015 and April 1st 2018.

"The Tendrara Licence offers our shareholders an exciting early drilling opportunity to appraise an existing gas discovery," Griffiths said.

"A successful drilling result at Tendrara could be the catalyst to move towards an Outline Development Plan and rapid monetisation of the original gas discovery.

"In this respect OGIF is a particularly valued partner as we share a common vision of being a joint venture partnership with ONHYM capable of making a material impact on the Moroccan gas market and assisting the drive for gas-fired power generation."

Shares in Fastnet were up 1% to 24p at 13:00 on Wednesday.

OH

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