Fastnet agrees on conditions for Deep Kinsale well offshore Ireland
Fastnet Oil & Gas has entered an amended option agreement with Petronas subsidiary PSE Kinsale Energy concerning the Deep Kinsale prospect offshore southern Ireland.
This extends from 4,000 ft (1,219 m) subsea below the producing Kinsale Head gas field in the Celtic Sea.
Revised terms include:
- Extension of the option agreement to March 31, 2015
- Commitment to start drilling of a well by Dec. 31, 2016
- Upon completion and, if warranted, testing of the farm-in well and funding 100% of all drilling and testing costs, Fastnet’s equity interest in the Deep Kinsale Sub-Area to be fixed at 60%.
The terms remain subject to the consent of Ireland’s Minister for Communications, Energy and Natural Resources.
Paul Griffiths, managing director of Fastnet, said: “Fastnet has considerably advanced the technical understanding and de-risked the opportunity atDeep Kinsale based on our extensive interpretation of our newly acquired 3D seismic data (2013).
“Fastnet has progressed potential farm-in 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.”