Fastnet Oil & Gas Plc, the E&P company focused on exploration acreage in Africa and in the Celtic Sea, announces formal completion of its farm-out of a 9.375% interest in the Foum Assaka Licence, off-shore Morocco, to SK Innovation, the energy and chemicals affiliate of SK Group, South Korea’s third largest conglomerate.
Completion had been previously subject to receipt of a Joint Ministerial Order from the Moroccan Authorities confirming the farm-out and approval for the farm-out transaction from the Korean Ministry of Trade, Industry and Energy.
Following the completion of the Transaction, SK Innovation is due to pay Fastnet accumulated back costs of US$20.4 million. Fastnet is also carried through its share of the drilling costs for the FA-1 well, which is currently ongoing, up to a gross well cost of $100m as well as either an appraisal well or, at SK Innovation’s discretion, a further exploration well (also capped at USD$100m gross).
Fastnet holds its interest in the Foum Assaka licence area through its wholly owned subsidiary Pathfinder Hydrocarbon Ventures Limited. Following completion of the transaction, Fastnet will hold a 9.375% interest in the Foum Assaka Licence, with Kosmos Energy Deepwater Morocco, a subsidiary of Kosmos Energy Ltd. holding 29.925%, BP Plc 26.325%, SK Innovation 9.375% and ONHYM the remaining 25%.
Celtic Sea Operational Update
Initial interpretation of Fastnet’s processed 3D seismic surveys acquired over Mizzen and Deep Kinsale in 2013 has identified 22 structures in the prospective Upper Jurassic to Lower Cretaceous interval. The largest structure underlies the Kinsale gas field and covers an area of 110 sq. km. Two large structures covering 45 and 63 sq. km. respectively have been identified in Mizzen, which also, importantly, contains four additional seismic amplitude-driven structural leads that are potential gas anomalies.
In addition to the structural leads, there are a number of potential stratigraphic traps in the Lower Cretaceous and further deep-seated structural leads in the Triassic and Jurassic, which 3D seismic acquisition has better defined relative to the historical legacy 2D seismic.
This 3D seismic data are being made available to potential farminees seeking material prospects and “running room”.
Commenting, Paul Griffiths, Managing Director of Fastnet, said:
“We are pleased to have concluded the Foum Assaka farm-out and look forward to working with SK Innovation during the ongoing FA-1 drilling programme. The accumulated costs paid to Fastnet will further strengthen our balance sheet and allow us to prudently develop our business objectives during 2014 and 2015.
“The substantial investment in 3D seismic coverage, the largest in 45 years, in the Celtic Sea in 2013 is beginning to pay dividends as the results are proving to be a catalyst stimulating industry interest in our licence portfolio. This interest is reflected in the first-ever conference dedicated exclusively to the Celtic Sea business development and exploration opportunities being held in Dublin later today which is being attended by 20 global explorers from 4 continents.”
Press Release, April 30, 2014