AMYT.L Regulatory News (AMYT)

21 February 2013

Fastnet Oil & Gas plc

("Fastnet" or the "Company")

FASTNET EXECUTES EXCLUSIVE OPTION AGREEMENT TO FARM INTO THE "DEEP KINSALE PROSPECT" BENEATH THE KINSALE HEAD GAS FIELD

Highlights

§ Exclusive option agreed with PSE Kinsale Energy Limited ("Kinsale Energy") to farm into the "Deep Kinsale Prospect" beneath the producing Kinsale Head gas field

§ Minimum of 500 sq. km. 3D seismic to be acquired in 2013

§ Potential to drill in 2014 to earn 60% working interest (reducing to a minimum of 40% should Kinsale Energy exercise certain back-in rights)

§ Deep Kinsale Prospect geologically similar to and on trend with Barryroe (Purbecko-Wealden reservoirs)

§ Strategy to build a material portfolio of Purbecko-Wealden prospective structures now complete - Deep Kinsale, Mizzen, Shanagarry and 49/13

Fastnet (AIM: FAST, ESM: FOI) the listed E&P company focused on near term exploration acreage in the Celtic Sea and Morocco, is pleased to announce  that it has executed an exclusive option agreement (the "Agreement") with Kinsale Energy, a wholly owned subsidiary of PETRONAS, to farm into the "Deep Kinsale Prospect" from 4,000 feet subsea below the producing Kinsale Head gas field defined by a sub-area (the "Deep Kinsale Sub-Area) of Petroleum Lease No. 1 (see map of the area on the Company's website: www.fastnetoilandgas.com/go/operations/ireland).

The key terms of the Agreement are as follows:

·; Deep Kinsale Sub-Area covers parts of Blocks 48/20, 48/25, 49/16 and 49/21;

·; Exclusive option confined to geological formations below 4,000 feet subsea;

·; Fastnet to acquire a minimum of 500 sq. km. of 3D seismic by 31 December 2013 and to complete geological and engineering studies;

·; Fastnet to have an exclusive option to farm in, exercisable before 30 September 2014, by commencing a well ("Farm-in Well") on or before 30 November 2015 to test the Purbecko-Wealden reservoirs, productive in Barryroe;

·; The Farm-in Well to be drilled to a provisional depth of 8,000 feet subsea;

·; Upon completion and, if warranted, testing of the Farm-in Well Fastnet will earn a 60% working interest in the Deep Kinsale Sub-Area by funding 100% of all drilling and testing costs;

·; Kinsale Energy shall have the back-in option, exercisable at its discretion within a period of 30 Business Days of completion by Fastnet of the exercise of the Option, to increase its interest in the Kinsale Deep Sub-Area by 10%, by paying for 16.667% of the drilling and testing costs of the Farmin Well; and

·;  If there is a commercial development, Kinsale Energy shall have the option to increase its working interest for no consideration, by 5% once production exceeds 100 million barrels oil equivalent ("MMBOE"), by a further 5% once production exceeds 150 MMBOE oil equivalent and by a further 5% once production exceeds 200 MMBOE subject to the Kinsale Energy's working interest not exceeding 60% in aggregate.

The assignment of working interest in the Deep Kinsale Sub-Area following completion of the Farmin Well is subject to the consent of the Minister for Communications, Energy and Natural Resources.

About the Deep Kinsale Prospect

In 1970 Marathon Petroleum Company (Ireland) Ltd drilled the 48/25-1 well at Kinsale Head, the first well in the North Celtic Sea Basin. Subsequently in 1972 the 48/25-2 and 48/20-1a wells were drilled to appraise the Kinsale Head structure updip from 48/25-1 at the shallow Greensand reservoir level. This led to the discovery of the Kinsale Head gas field, which came on stream in 1978.

Recent studies by Fastnet in the Mizzen and Shanagarry Licensing Options have provided the Board with a better regional understanding of the structural and stratigraphic controls governing the distribution of the Purbecko-Wealden oil-bearing reservoir sequences which have allowed Fastnet to develop a regional play concept.

Fastnet intend to acquire a minimum of 500 sq. km. of 3D seismic over the Kinsale Head area in the first half of 2013 and has selected CGG as its preferred seismic contractor for 3D seismic acquisition in the Celtic Sea, as announced on 18th February 2013. This will be the first 3D survey over Kinsale Head to target the deeper oil and gas potential of the Kinsale Head structure. The intention is to de-risk the deep structure through potentially better seismic imaging of both the structure and potential variations in reservoir thickness and quality.

Cathal Friel, Chairman of Fastnet said:

"We are delighted to have added an exclusive option to farm into and potentially drill the Deep Kinsale Prospect in 2014. It represents an attractive addition to our Irish portfolio as we have long held a belief that Deep Kinsale offers the potential to yield up another significant hydrocarbon discovery offshore Ireland. This belief has been further strengthened by the successful appraisal of Barryroe in 2012, which is geologically analogous to Deep Kinsale. We greatly look forward to working in close cooperation with our colleagues at Kinsale Energy, as we collectively seek to de-risk the prospect for drilling."

For further information please contact:

Notes to editors

Fastnet Oil & Gas plc is an independent oil and gas exploration company that focuses on identifying early stage exploration and appraisal opportunities in Offshore Ireland and Africa. It is quoted on the AIM market of the London Stock Exchange and the Enterprise Securities Market (ESM) of the Irish Stock Exchange. Fastnet's aim is to assemble a portfolio of high impact conventional oil and gas assets that will deliver sustainable growth and value for the Company. Its immediate focus is on implementing its Offshore Ireland and Africa strategies where it has been awarded four offshore licensing options in the Celtic Sea (Molly Malone Basin, Shanagarry, 49/13 and Mizzen Basin) and acquired a material interest in the highly prospective Foum Assaka permit Offshore Morocco. In addition, Fastnet will continue to pursue new conventional oil and gas opportunities in Africa where the Directors and Advisory Board also have extensive knowledge, contacts and experience of creating value.