15 Oct 2013

Kosmos Agrees Farm-out of Foum Assaka Permit

Source: RNS
RNS Number : 5468Q
Fastnet Oil & Gas PLC
15 October 2013
 



15 October 2013

Fastnet Oil & Gas plc

("Fastnet" or the "Company")

 

 

Kosmos agrees farm-out of Foum Assaka permit, Offshore Morocco with BP

  

Fastnet (AIM: FAST, ESM: FOI) the listed E&P company focused on near term exploration acreage in Morocco and the Celtic Sea, is pleased to note that its partner, Kosmos Energy ("Kosmos") (NYSE: KOS), today announced that it has entered into a farm-out agreement with BP plc ("BP") (LSE: BP) (NYSE: BP), to earn a 26.325% stake in the Foum Assaka permit Offshore Morocco.  

 

Following the completion of the farm-out and the receipt of all regulatory approvals, the equity split for the Foum Assaka Offshore Petroleum Agreement offshore Morocco will be:

 

Foum Assaka:

 

Kosmos

29.925% (Operator)

BP

26.325%

Pathfinder*

18.750%

ONHYM

25.000%

 

*Pathfinder Hydrocarbon Ventures Limited is a wholly-owned subsidiary of Fastnet

 

Paul Griffiths, Managing Director of Fastnet said:

"We are very pleased to note the timely announcement by our Joint Venture Partner Kosmos that they have entered into a farm-out agreement with BP. This is an unequivocal validation by the oil industry of the potential of offshore Morocco as a resurgent exploration province and in particular an endorsement of the materiality of the specific geological play being targeted in the Foum Assaka licence area. The significant strengthening of the Joint Venture Partnership operated by Kosmos ahead of a near-term drilling programme is welcomed by Fastnet. We view the farm-out as indirectly value-enhancing to Fastnet in that it reduces the industry perception of geological risk for Foum Assaka whilst simultaneously creating a catalyst to accelerate closure of Fastnet's own farmout process by underpinning commercial terms that are focused on a farminee paying a disproportionate share of drilling costs."

 

The full announcement from Kosmos Energy is set out below:

 

 

KOSMOS ENERGY FINALIZES OFFSHORE AGADIR FARM-OUT AGREEMENTS WITH BP

 

Kosmos signs petroleum agreement for the Tarhazoute Offshore block

 

DALLAS, Texas, October 15, 2013 - Kosmos Energy (NYSE: KOS) today announced that it has entered into three farm-out agreements with BP plc (LSE: BP) (NYSE: BP), covering three blocks in the Agadir Basin, offshore Morocco. Under the terms of the agreements, BP will acquire a non-operating interest in each of the Essaouira Offshore, Foum Assaka Offshore and Tarhazoute Offshore blocks. BP will fund Kosmos' share of the cost of one exploration well in each of the three blocks, subject to a maximum cost per well. In the event a second exploration well is drilled in any block, BP shall pay a disproportionate share of the well cost subject to a maximum cost per well. BP shall also pay its proportionate share of past costs. Completion of the transactions is subject to customary closing conditions, including Moroccan Government approvals. 

 

Kosmos also announces that it has recently signed a petroleum agreement with the Office National des Hydrocarbures et des Mines (ONHYM) covering the Tarhazoute Offshore block, previously held under a reconnaissance contract since 2011. The Tarhazoute block is contiguous with the Essaouira and Foum Assaka blocks and will allow integrated exploration over a significant portion of the Agadir Basin, one of the last remaining underexplored salt basins along the Atlantic Margin. 

 

Brian F. Maxted, Chief Executive Officer, Kosmos Energy, commented: "The Agadir Basin farm-out along with the petroleum agreement for Tarhazoute mark significant and important forward steps for Kosmos in Morocco as we prepare to commence drilling in the first half of 2014. We are delighted that BP will be joining this venture as they add significant value to our operations, particularly given their proven success in salt basin exploration and production."

 

On closing of the transaction, the interests in the three blocks will be as follows, with ONHYM having a carried interest through the exploration period:

 

Essaouira:

Kosmos

30.0% (Operator)


BP

45.0%


ONHYM

25.0%




Foum Assaka:

Kosmos

29.925% (Operator)


BP

26.325%


Pathfinder

18.750%


ONHYM

25.000%




Tarhazoute:

Kosmos

30.0% (Operator)


BP

45.0%


ONHYM

25.0%

 

The three contiguous blocks cover approximately 25,000 km2 and water depths range up to 3,000 meters.  Pathfinder Hydrocarbon Ventures Limited is a wholly-owned subsidiary of Fastnet Oil & Gas plc (AIM: FAST).

 

About Kosmos Energy

Kosmos Energy is a leading independent oil and gas exploration and production company focused on frontier and emerging areas along the Atlantic Margin. The Company's asset portfolio includes existing production and other major development projects offshore Ghana, as well as exploration licenses with significant hydrocarbon potential offshore Ireland, Mauritania, Morocco and Suriname.  As an ethical and transparent company, Kosmos is committed to doing things the right way.  The Company's Business Principles articulate our commitment to transparency, ethics, human rights, safety and the environment. Read more about this commitment in the Kosmos 2012 Corporate Responsibility Report.  Kosmos is listed on the New York Stock Exchange and is traded under the ticker symbol KOS. For additional information, visit www.kosmosenergy.com.

 

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Kosmos expects, believes or anticipates will or may occur in the future are forward-looking statements. Kosmos' estimates and forward-looking statements are mainly based on its current expectations and estimates of future events and trends, which affect or may affect its businesses and operations. Although Kosmos believes that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to Kosmos. When used in this press release, the words "anticipate," "believe," "intend," "expect," "plan," "will" or other similar words are intended to identify forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Kosmos, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Further information on such assumptions, risks and uncertainties is available in Kosmos' Securities and Exchange Commission ("SEC") filings.  Kosmos undertakes no obligation and does not intend to update or correct these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by applicable law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.

 

 

For further information please contact:

 

Fastnet Oil & Gas plc

Cathal Friel, Chairman

Paul Griffiths, Managing Director

+353 (1) 644 0007



Shore Capital

Nomad

Bidhi Bhoma, Edward Mansfield

 

Corporate Broking

Jerry Keen

+44 (0) 20 7408 4090

 

Mirabaud Securities LLP

(Joint Broker)

Peter Krens, Edward Haig-Thomas

 

 

+44 (20) 7321 2508

 

Davy

(ESM Adviser & Joint Broker)

John Frain, Anthony Farrell

+353 (1) 679 6363



FTI Consulting

Edward Westropp, Natalia Erikssen, Nicola Murray

+44 (0) 207 831 3113

 

Notes to editors

Fastnet Oil & Gas plc is an independent oil and gas exploration company that focuses on identifying early stage exploration and appraisal opportunities in Offshore Ireland and Africa. It is quoted on the AIM market of the London Stock Exchange and the Enterprise Securities Market (ESM) of the Irish Stock Exchange. Fastnet's aim is to assemble a portfolio of high impact conventional oil and gas assets that will deliver sustainable growth and value for the Company. Its immediate focus is on implementing its Offshore Ireland and Africa strategies where it has been awarded four offshore licensing options in the Celtic Sea (Molly Malone Basin, Shanagarry, 49/13 and Mizzen Basin) and acquired a material interest in the Foum Assaka permit Offshore Morocco. In addition, Fastnet will continue to pursue new conventional oil and gas opportunities in Africa where the Directors and Advisory Board also have extensive knowledge, contacts and experience of creating value.

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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