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.”