Wednesday, November 14 11:25:09
Irish oil explorer Fastnet Oil and Gas has announced details of two new deals to expand its acreage position in the North Celtic Sea off the Irish coast.
The deals come as Fastnet announced the appointment of Paul Griffiths as its new managing director. He replaces Dr Stephen Staley who is continuing at Fastnet as a non-executive director.
The first agreement involves Fastnet farming-in to the 'Shanagarry' 12/5 licensing option, east of the Kinsale Gas Field and Barryroe Oil Field, subject to approval. Shanagarry was recently awarded by Irish regulators to a joint venture group comprising Adriatic Oil plc, Carob (consultants to Fastnet) and Petro-Celtex Consultancy, a company established by Paul Griffiths.
The licensing option area lies south and northeast of the undeveloped Helvick oil and Old Head of Kinsale gas fields, respectively. It commences from 1 December 2012 until 31 May 2014 and includes part-Blocks 49/18, 49/19, 49/20, 49/23, 49/24 and 49/25 in the North Celtic Sea.
In 1984 Marathon Oil mapped a 120 sq km structure within Shanagarry that was proved to be hydrocarbon-bearing after logging of a gross combined oil and gas column of approximately 500 feet in well 49/19-1. The well drilled by Marathon and Enterprise Oil was not fully tested due to operational issues and poor gas economics as Kinsale satisfied the Irish domestic market and no gas interconnector existed to the UK at the time
Cathal Friel, the chairman of Fastnet, said: "We are delighted to have concluded this significant transaction for a low entry cost on behalf of Fastnet's shareholders. The 49/19-1 structure has significant areal extent even by industry standards. The offshore Atlantic Margin and has been proven already by well logs from 1984 to be hydrocarbon-bearing. This licence application was originally conceived and developed by Paul Griffiths prior to him joining Fastnet. Now that he is has been appointed managing director of Fastnet, he will continue to focus on delivering value for our shareholders through de-risking the prospect. This transaction is wholly consistent with our stated strategy of targeting prospects of sufficient materiality to attract potential oil majors."