PRODUCT PROFILE

Latest Dublin Prices

Fastnet gears up for Celtic Sea drilling

Tuesday, March 19 10:36:26

Irish oil and gas explorer, Fastnet, this morning said it has signed contracts for a seismic exploration of its Celtic Sea project and confirmed that a farm out process is now in the pipeline.

Fastnet has awarded a USD18m contract to CGG for what will be the largest ever 3D seismic programme in the Celtic Sea, spanning 1,710 square kilometres.

The aim is to de-risk and mature exploration prospects for early drilling, the company said.

It is also hoped that a share of the cost will be met by a new partner. The farm out process has now started and Fastnet says it has already received expressions of interest from 'a range of multi-nationals, mid-caps and small-caps.'

"Even at this very early stage in the farm-out process we are very encouraged by the level of interest being shown by a broad spectrum of companies and, despite our cash position of around USD35 million, it is our intention that any partner would pay an appropriate proportion of the costs of this large seismic survey," said managing director Paul Griffiths.

"This is the first large-scale 3D seismic programme to be acquired in this part of offshore Ireland. Whilst we are targeting proven hydrocarbon systems around the Kinsale and Barryroe fields, we are also evaluating a prospective part of the Celtic Sea Basin covering approximately 4,250 km2 that has seen only one well drilled in 1975 by Esso, which encountered oil shows. 3D seismic is the first step to creating material, 'drill ready' prospects," added Mr Griffiths.