Fastnet Oil & Gas has started a farm-out process over its 18.75% net interest in the Foum Assaka exploration licence in the Agadir Basin, offshore Morocco.
Fastnet says that while this process is in its early stages, expressions of interest have already been received from several multi-national and national oil corporations and preferred terms are expected to include the reimbursement of past expenditures, including 3D seismic costs, and a carry for future drilling activities.
On 29 May Fastnet announced that its wholly-owned subsidiary Pathfinder Hydrocarbon Ventures, had agreed to farm into, subject to regulatory approvals, eight highly prospective exploration blocks comprising the Tendrara Lakbir petroleum agreement onshore Morocco, covering 14,548 sq. km.
Fastnet anticipates the drilling of an appraisal/pre-development well in the first quarter of 2014 at a cost of approximately US$7m, following which the company’s gross interest in the licence area will be 50% (excluding ONHYM’s standard 25% carry, which would result in a net interest to the company of 37.5%).
An update on the company’s Celtic Sea assets said: “As announced on 22 May, the company has completed the acquisition of 500 sq. km. of 3D seismic data over Deep Kinsale significantly ahead of schedule and under budget.
“The overall seismic programme, which is the largest ever seismic programme conducted in the Celtic Sea, will be completed by end June 2013 and is anticipated to cost US$18m. Final processing and interpretation of the data is expected to be completed by December 2013, however preliminary results are expected to be available from September 2013.
“Having opened a data room in March 2013, the company is now in advanced discussions with targeted international oil and gas companies. This process is expected to be completed during the summer of 2013 and the terms are expected to involve a contribution to past costs, including 3D seismic.”
Fastnet said that based on the board’s current expectations of its overall work programme commitments, funding obligations and a successful outcome to its on-going farm-out discussions, the company is fully funded for the next 12 months.
