Fastnet Announces Improvement of Deep Kinsale Option

By Joseph R. Fonseca
Thursday, August 14, 2014
Logo

 

Fastnet the UK and Irish listed E&P company focussed on near-term exploration and appraisal acreage in Morocco and the Celtic Sea, is pleased to announce that it has entered into an amended exclusive option agreement with PSE Kinsale Energy Limited ("Kinsale Energy"), a wholly owned subsidiary of PETRONAS, in relation to the "Deep Kinsale Prospect".

The Deep Kinsale Prospect extends from 4,000 feet subsea below the producing Kinsale Head gas field and is 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).
 
Following agreement with Kinsale Energy, Fastnet has secured improved commercial terms from those previously announced on 21 February 2013 and which the Board believes will assist in the current farm-in process. The revised terms include:
 
·      Extension of the Option Agreement to 31 March 2015
 
·      Commitment to commence drilling of a well ("Farm-in Well") extended to on or before 31 December 2016
 
·      Deletion of the Kinsale Energy back-in option,which had allowed Kinsale Energy 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 Farm-in Well 
·      Removal of Kinsale Energy's right to increase its working interest by up to 15% for no consideration if there is a commercial development, the level of such increase dependent on the level of production
 
·      Upon completion and, if warranted, testing of the Farm-in Well and funding 100% of all drilling and testing costs, Fastnet's net equity interest shall be fixed at 60% working interest in the Deep Kinsale Sub-Area
 
The assignment of working interest in the Deep Kinsale Sub-Area following completion of the Farm-in Well is subject to the consent of the Minister for Communications, Energy and Natural Resources.
 
Paul Griffiths, Managing Director of Fastnet, commented,  "The new terms of the Deep Kinsale Prospect greatly improve the project economics and significantly improves materiality for Fastnet and any potential Farminee. The extension of the deadline to exercise the option and the commencement of a well works well with our timeline to complete a Farmin transaction from our ongoing process. Fastnet has considerably advanced the technical understanding and de-risked the opportunity at Deep Kinsale based on our extensive interpretation of our newly acquired 3D seismic data (2013). Fastnet has progressed potential farmin discussions with a number of industry players and we seek to close out a transaction with a potential drilling partner for Deep Kinsale and recover substantial past costs to further strengthen our already significant discretionary cash balances."

 

Maritime Reporter August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Energy

Syncrude Uncertain about Plant Fire Affecting Production

The operator of Canada's largest synthetic crude project said on Saturday it is investigating the causes of an early morning fire at an upgrading plant. Firefighters extinguished the blaze,

China Passes New Pollution Law, Will Cap Coal Consumption

Legislators have approved amendments to China's 15-year-old air pollution law that grant the state new powers to punish offenders and create a legal framework to cap coal consumption,

Marad Celebrates Deployment of Maritime Fuel Cell Project

The U.S. Department of Transportation’s Maritime Administration (MARAD) today celebrated the launch of field trials for the first prototype hydrogen fuel cell

News

Syncrude Uncertain about Plant Fire Affecting Production

The operator of Canada's largest synthetic crude project said on Saturday it is investigating the causes of an early morning fire at an upgrading plant. Firefighters extinguished the blaze,

Hurricane Ignacio Gains Strength but Expected to Bypass Hawaii

Hurricane Ignacio intensified as it blew across the Pacific on a route likely to bypass Hawaii on Saturday, said the Central Pacific Hurricane Center of the National Weather Service.

United Heavy Lift Gears up for the Asian Boom

All set to expand its footprint in the South Asian market significantly, Hamburg based, United Heavy Lift (UHL) appointed strategically placed Lexicon Overseas Pvt Ltd.

Underwater Engineering

Damen's Ship with Van der Velden FLEX Tunnel Commissioned

The first ship outfitted with the Van der Velden FLEX Tunnel was named Friday, August 14th in Duisburg. The Rhenus Duisburg, the new barge combination from shipping company Rhenus PartnerShip,

Ecopetrol, JX Nippon Team Up to Explore Brazil Offshore

Ecopetrol reports it has established an Alliance with Japan’s JX Nippon Oil & Gas Exploration through its affiliate in Brazil, Ecopetrol Óleo e Gás to explore the FZA-M-320 block,

Royal IHC successfully launches TSHD MAHURY

On 14 August, Royal IHC successfully launched the MAHURY, a 1,840m3 capacity twin-screw trailing suction hopper dredger (TSHD), at partner shipyard MTG Dolphin Shipyard in Varna, Bulgaria.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Offshore Oil Pipelines Pod Propulsion Salvage Ship Electronics Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2752 sec (4 req/sec)