LONDON (Alliance News) - Fastnet Oil & Gas PLC Wednesday said it has formally completed the sale of interest in its Foum Assaka Licence in Morocco to SK Innovation Co Ltd.
The oil and gas exploration and production company, with operations in Morocco and the Celtic Sea, said it has now formally farmed out a 9.375% interest in the licence, which will be subject to the payment from SK Innovation of USD20.4 million in accumulated back costs.
The company said 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.
Fastnet said it is carried trough drilling costs for the FA-1 well, which is currently ongoing, up to gross well cost of USD100 million along with an appraisal well or a further exploration well, also capped at USD100 million gross.
Following completion of the deal, Fastnet will have reduced its stake in the site to same 9.375% as SK Innovation will have.
Fastnet also noted Wednesday that initial interpretation of its processed 3D seismic surveys over its Celtic Sea Mizzen and Deep Kinsale site have identified 22 structures to be following up by further testing.
The company said the 3D seismic data is being made available to potential partners seeking material prospects.
Fastnet Oil & Gas shares were up 4.1% to 11.32 pence Wednesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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