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Fastnet Oil & Gas
www.fastnetoilandgas.com
by Jamie Ashcroft
Fastnet says the project area provides relatively inexpensive drilling opportunities close to the Maghreb pipeline
Fastnet Oil and Gas (LON:FAST) has decided to pursue the Merada project onshore Morocco.
It told investors this morning that it has exercised its option over a stake in the licence application. And it will now pay US$1.5 million guarantee to the Moroccan government.
The company says the project provides the opportunity to target a Tertiary turbidite fan system which it believes to be substantially larger than hydrocarbon traps in neighbouring licence areas.
“With Merada in place, we have potential exposure to some high impact, near term and relatively low risk exploration wells which should allow us to give our shareholders material upside potential contained within the licence area,” said chairman Cathal Friel.
The licence comprises four separate permits in the Guercif basin. Fastnet says the project area provides relatively inexpensive drilling opportunities close to the Maghreb pipeline – with access to European-level gas prices.
The initial three year exploration period comes with a minimum work commitment that includes the re-processing and interpretation of 1,000 kilometres of existing 2D seismic data, as well as acquiring 250 kilometres of new 2D seismic data and drill at least one well to a depth of 2,000 metres.
The expected cost of this work is US$3.65 million. Fastnet is required to pay 50% of all costs at Merada.
It will be the operator of the Merada venture with a 37.5% stake alongside partner Drillbit Exploration, which also has 37.5%, and Morocco’s 25% carried interest.
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