Fastnet Oil & Gas plc (FAST) is an independent oil and gas exploration company focused on identifying early stage exploration and appraisal opportunities in Offshore Ireland and Africa. It is quoted on the AIM market of the London Stock Exchange and the Enterprise Securities Market (ESM) of the Irish Stock Exchange. Fastnet’s…
–ADDS BROKER COMMENT–
Fastnet Oil & Gas (LON:FAST) has confirmed that the drilling of the FA-1, or Eagle, exploration well offshore Morocco will begin in the first half of 2014, following the signing of a rig agreement.
Kosmos Energy, the operator of the Foum Assaka block, has signed a rig share agreement with BP – itself a partner in the block – and Maersk Drilling for the Maersk Discoverer rig.
Once underway the drill programme is expected to last for three months, according to Kosmos.
“We are delighted that Kosmos has secured the required rig to execute our Foum Assaka exploration programme with BP and SK beginning the first half of this year,” said managing director Paul Griffiths.
“We have moved quickly to prepare ourselves for drilling by independently securing our farm-in partner and ensuring the company is well funded to deliver an exciting drilling programme offshore and onshore Morocco in 2014 in partnership with world class explorers.
“Fastnet’s directors and experienced management team have never deviated from the company’s stated strategy of delivering shareholder value through the successful application of the drill bit at the earliest opportunity.
“Within 18 months of our admission to AIM we are now poised on the cusp of a wave of Moroccan drilling activity that maximises our potential for exit value in the success case given the industry-wide appetite for Moroccan exploration assets.”
Irish stockbroker Davy said the confirmation of the rig contract was good news for Fastnet, while London based Northland Capital said it reflects the “rapid progress” being made in Morocco.
Fastnet has thus far been a pioneer of the recent Moroccan exploration, Northland analyst Andrew McGeary said.
“As we have stated, we expect the next 12—18 months to mark a busy exploration period for the territory with up to 12 exploration wells expected in what is certainly one, if not the, exploration hot spots for 2014,” he said in a note.
