Fastnet Oil & Gas has announced that it has entered into a farm-out agreement (FOA) with an unnamed bidder with respect to the Foum Assaka Licence Area, offshore Morocco
The licence area, covering around 6,478 sq km, consists of four exploration permits and is located in the Agadir Basin.
The final bidder was selected following the submission of final bids from interested parties, the Irish oil and gas explorer said.
Under a non-binding letter of intent (LoI), the parties have agreed to proceed with negotiations entering an FOA. Under the deal, Fastnet Oil & Gas is expected to give away a share of its interest in the licence area in return for payments towards past costs incurred by the company. Fastnet Oil & Gas will also a carry through drilling activities in 2014, the Irish explorer added.
Paul Griffiths, managing director of Fastnet Oil & Gas, said, “We are delighted with the level of interest shown in the Licence Area and also by the calibre of the parties who submitted bids. We look forward to working with them to move towards execution of the FOA in the immediate term, with completion anticipated in Q1 2014.”
Fastnet Oil & Gas currently holds a 25 per cent gross and 18.75 per cent net interest in Foum Assaka, which is operated by Kosmos Energy. BP holds 31.25 per cent stake. The remaining 25 per cent is held by Moroccan state energy company ONHYM.
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