LONDON (Alliance News) - Fastnet Oil & Gas PLC Monday said its subsidiary Pathfinder Hydrocarbon Ventures Ltd has amended its exclusive option agreement with Oil and Gas Investments Funds in relation to eight exploration permits in the Tendrara Licence, onshore Morocco.
The exploration and production oil and gas company, with activities in Africa and the Celtic Sea, south of Ireland, said it has secured improved commercial terms with its partner relating to the Tendrara Lakbir petroleum agreement, including an extension of the option agreement to the end of 2014, while it said it has also increased its net equity interest to 50% from 37.5%, upon the option being exercises and subject to Moroccan government approvals.
Fastnet said it also has reduced its drilling commitments to only one well on the TE-5 Structure, from the three wells committed to in the original agreement, and extended the deadline to drill the first well to April 21, 2015.
The company said it is required to provide Oil and Gas Investments Funds with an executed drilling contract or an irrevocable bank guarantee of USD2.75 million.
In the same statement Monday, Fastnet also said it is seeking an additional drilling partner to target materially higher potential gas resources in the planned drilling programme of the TE-5 gas asset.
It said discussions with suitably potential partners is currently underway, and are expected to conclude in the second half of the year.
"We believe that the Tendrara Licence is highly attractive to a potential strategic gas partner given the existing TE-5 gas discovery with near-term development potential, and the additional prospectivity of multiple play types within the large licence area which provides significant potential upside," said Managing Director Paul Griffiths in a statement.
Fastnet shares were up 3.4% at 5.64 pence Monday morning.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
Copyright 2014 Alliance News Limited. All Rights Reserved.
