Proactive Investors UK
By Giles Gwinnett
Oil explorer Fastnet (LON:FAST) expects to secure farm out partners in both the Celtic Sea and onshore Morocco, it told investors in final results today.
It has established a track record in this regard, with the successful farm-out of the Foum Assaka, offshore Morocco, to SK Innovation in April this year, it said, and the firm remains carried up to a gross of US$100mln for the next well if SK chooses to participate in a further exploration well.
FA-1 well was drilled under budget and despite not proving commercially extractable hydrocarbons it did find live oil and evidence of reservoir, Fastnet pointed out.
The farm-out to SK Innovation was achieved in what has been a “difficult year for the small cap oil and gas sector as a whole”, the firm said.
“Even though the UK economy has generally seen a recovery, overall the market remains risk adverse and as a result oil and gas exploration and appraisal companies are being widely overlooked by the investment community.”
Looking ahead, there is ongoing farm-out processes running for the onshore Morocco Tendrara project and Celtic Sea assets with hopes to conclude by the end of calendar year 2014, and in the Celtic Sea, 3D seismic interpretation and prospect mapping is to be completed on the Deep Kinsale and Mizzen areas.
For the year to end March, 2014, the pre-tax loss was US$2.55mln (2013: Loss of US$2.12mln). while cash at end of year was US$17.4mln.
