Fastnet Oil and Gas plc, the newly listed E&P company focussed on near term exploration acreage in the Celtic Sea and Africa, announces that it has acquired the entire issued share capital of Pathfinder Hydrocarbon Ventures Ltd from its parent company, Pathfinder Energy Maghreb plc (“PEMP”) for an initial consideration of US$8.0 million to be satisfied by the payment of US$1.0 million in cash and by the issue of 40,688,212 new ordinary shares in the capital of the Company at a price of 11 pence per Ordinary Share.
Additional contingent consideration of US$1.0 million is payable on the condition that Pathfinder receives payment from Kosmos Energy Deepwater Morocco (“KEDM”), a wholly owned subsidiary of Kosmos Energy Ltd., of US$1.0 million due under the farmout agreement between the parties.
Prior to the acquisition, Pathfinder and PEMP entered into a royalty agreement in relation to the Foum Assaka licence area. The Royalty Agreement provides that, in certain circumstances, Pathfinder will pay PEMP a 1 per cent. royalty of the gross amount recovered by it from sales of oil and gas from the Licence Area, which rises to 3 per cent. after the recovery of certain costs.
Dr.Steve Staley, CEO of Fastnet commented:
“We are very pleased to have completed this transaction which is in-line with our stated strategy so soon after IPO. Through this acquisition, we are exposing our shareholders to near term drilling activities offshore West Africa in a very exciting frontier basin. We are pleased that we will be working with Kosmos and will benefit from the tremendous experience they have gained through discovering and quickly bringing into production the Jubilee Field offshore Ghana – a field which shares similar geology to the acreage in the offshore block we are acquiring today. I look forward to updating shareholders as to progress.”
John Craven, a shareholder, commented:
“As a shareholder, I am supportive of Pathfinder’s Moroccan West African fan play and confident that Fastnet can forge a strong relationship with Kosmos, a company that has enjoyed a huge amount of success offshore Ghana”
Press Release, July 18, 2012