Yahoo Finance UK
LONDON (ShareCast) – Shares (Dusseldorf: DI6.DU – news) in AIM-listed Fastnet Oil & Gas were slightly lower on Friday after the company was unable to find a co-investment partner for a highly prospective licence in Morocco. The company was forced to abandon the opportunity to exercise an option it had to farm into the Tendrara Lakbir Licence, in order to conserve cash. The option expired on 31 December 2014.
The licence covers an area of 14,548 sq km, the majority of one of Morocco’s prospective basins for Triassic gas and with potential low costs of export due to its proximity to Spain.
Chief executive Carol Law, who was appointed earlier in December, said: “Current market conditions have severely hindered our ability to attract a partner to join Fastnet in the Tendrara opportunity, thus the Board has elected not to exercise the Tendrara option agreement.
“Fastnet has a strong cash balance sheet with over $18m in cash. We believe this is the best decision and we will use great discipline in the allocation of our available cash to ensure maximum value for the shareholders.”
