Fastnet Releases Financial Results
Fastnet, the UK and Irish listed E&P company focused on near-term exploration and appraisal acreage in Morocco and the Celtic Sea, announces its audited results for the year ended 31 March 2014.
· Fully funded to meet all current licensing phase commitments and obligations, including a non-obligatory drilling programme onshore Morocco,
· Successful entry into onshore Morocco (Tendrara Lakbir), with a material drilling programme scheduled for H1 CY2015 contingent upon completion of a successful farm-out,
· Significant acreage position (25,192km2) under licence with primary exploration and appraisal prospects matured for drilling,
· 1,910 km2 of 3D seismic acquired in the Celtic Sea, the largest 3D seismic survey ever in the area,
· The total cost to Fastnet from licence acquisition through prospect portfolio development to the completion of FA-1 is less than US$2.75m,
· Celtic Sea farm out process underway with interest from major industry players, progress in line with preferred timing of new investment in exploration drilling targeted for 2016.
Financial and Corporate Highlights
· Strong balance sheet with US$17.4m cash reserves at 31 March 2014 and US$19.9m at 31 July 2014 following the completion of the Foum Assaka farm-out to SK Innovation,
· Oversubscribed share placing in November 2013 raising £10m (US$16.7m),
· Net loss for the year of US$2.6m reflects the low operating costs incurred by utilising external consultants and advisors for specific value adding projects only,
· Prudent management of cash resources to satisfy all current work programme commitments,
· Risk management of the asset portfolio through ongoing farm-down discussions for carries in drilling and past costs.
· First Foum Assaka exploration well (FA-1) drilled, spudded March 2014 and completed May 2014, management of risk and financial exposure mitigated by the completion of a farm-out to SK Innovation which included the receipt of US$20.4m in back costs,
· FA-1 encountered live oil shows in a pre-well target that was only partially penetrated by FA-1. Results currently being evaluated by Kosmos, BP, SK Innovation and Fastnet with a view to re-ranking the extensive prospect portfolio,
· Foum Assaka farm-out to SK Innovation completed in April 2014 for a carried interest in the FA-1 well and a potential carried interest in a second well,
· Improved terms and option extension secured on Tendrara Lakbir in June 2014 and on Deep Kinsale in August 2014.
Press Release, August 18, 2014