UK-based Africa and Celtic Sea-focused explorer Fastnet Oil & Gas has farmed out a 9.375% interest in the Foum Assaka license, offshore Morocco, to SK Innovation, the energy and chemicals affiliate of SK Group, South Korea's third largest conglomerate.
SK Innovation is due to pay Fastnet US$20.4 million accumulated back costs. Fastnet is also carried through its share of the drilling costs for the FA-1 well, which is currently ongoing, up to a gross well cost of $100m, as well as either an appraisal well or, at SK Innovation's discretion, a further exploration well (also capped at USD$100m gross).
Fastnet holds its interest in the Foum Assaka license area through its wholly owned subsidiary Pathfinder Hydrocarbon Ventures. Following completion of the transaction, Fastnet will hold a 9.375% interest in the Foum Assaka license, with Kosmos Energy Deepwater Morocco, a subsidiary of Kosmos Energy holding 29.925%, BP Plc 26.325%, SK Innovation 9.375% and ONHYM the remaining 25%.
Celtic Sea Operational Update
Initial interpretation of Fastnet's processed 3D seismic surveys, acquired over Mizzen and Deep Kinsale in 2013, has identified 22 structures in the prospective Upper Jurassic to Lower Cretaceous interval. The largest structure underlies the Kinsale gas field, off the southern coast of Ireland, and covers 110sq km. Two large structures covering 45 and 63sq km respectively have been identified in Mizzen, which also contains four additional seismic amplitude-driven structural leads that are potential gas anomalies, said Fastnet.
In addition to the structural leads, there are a number of potential stratigraphic traps in the Lower Cretaceous and further deep-seated structural leads in the Triassic and Jurassic, which 3D seismic acquisition has better defined relative to the historical legacy 2D seismic.
The 3D seismic data are being made available to potential farminees seeking material prospects and "running room".
Paul Griffiths, Managing Director of Fastnet, said: "We are pleased to have concluded the Foum Assaka farm-out and look forward to working with SK Innovation during the ongoing FA-1 drilling program. The accumulated costs paid to Fastnet will further strengthen our balance sheet and allow us to prudently develop our business objectives during 2014 and 2015.
"The substantial investment in 3D seismic coverage, the largest in 45 years, in the Celtic Sea in 2013 is beginning to pay dividends as the results are proving to be a catalyst stimulating industry interest in our license portfolio."
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