Fastnet, the listed E&P company focused on near term exploration acreage in Morocco and the Celtic Sea, has selected a preferred bidder and entered into an exclusivity agreement with that party in respect of the farm-out of its interest in the Foum Assaka licence area, offshore Morocco.
The Preferred Bidder has been selected following the submission of final bids from interested parties. Under a non-binding letter of intent, the parties have agreed to proceed with negotiations in good faith towards entering a formal farm-out agreement (“FOA”). Under the FOA, Fastnet is expected to farm-out a share of its interest in the Licence Area in return for a contribution towards past costs incurred and also a carry through drilling activities in 2014. Completion of the transaction is expected to occur following the signing of the FOA and the satisfaction of customary conditions in relation to such transactions such as government approvals, the waiver of any pre-emption rights of the participants under the joint operating agreement (“JOA”) and the consent of the other JOA parties.
Paul Griffiths, Managing Director of Fastnet, said:
“We are delighted with the level of interest shown in the Licence Area and also by the calibre of the parties who submitted bids. The Preferred Bidder would be an excellent addition to the JOA party as a whole and we look forward to working with them to move towards execution of the FOA in the immediate term, with completion anticipated in Q1 2014.”
Press Release, November 14, 2013