Korean buys into Moroccan offshore

Fastnet-Selects-Bidder-for-Morocco-Licence18 December 2013 – Fastnet inks deal with SK Innovation for half of its stake in Foum Assaka licence.

Irish junior Fastnet Oil & Gas has signed a farm-out deal for a large portion of its holding in a Moroccan offshore licence where a first wildcat is set to spud early next year.

South Korea’s SK Innovation is taking one half of Fastnet’s 25% gross interest in the Foum Assaka licence in the Agadir basin where Kosmos Energy is the operator.

SK is to pay Fastnet $3.2 million in back costs and also carry the seller’s costs through at least the first exploration well, the Eagle prospect, which is set to spud late in the first quarter.

The Korean company may also carry Fastnet’s costs through a second well, should it come to pass.

Fastnet had said in June that it was looking to farm out a portion of its stake, with a number of “multi-national and national oil companies” showing an interest. It then said in November that it was close to signing a farm-out deal, having penned an exclusivity agreement with an unidentified player.

Fastnet holds an 18.75% net interest in Foum Assaka. Kosmos used to have a 56.25% net interest until UK supermajor BP last month farmed in to the tune of a 26% stake. The remaining 25% is held by Moroccan state energy company ONHYM.

Fastnet acquired the stake after buying Pathfinder Hydrocarbon Ventures in July 2012 for $8 million, a buy that also gave it a 12-month purchase option on the onshore Merada licence in Morocco, which it subsequently took up.

The Foum Assaka licence, covering some 6478 square kilometres, consists of four exploration permits.
*Eoin O’Cinneide, Upstreamonline

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