27th Nov 2013 11:01
LONDON (Alliance News) - Fastnet Oil & Gas PLC Wednesday said it has raised GBP10 million before expenses in an over-subscribed placing of 71.4 million shares at 14 pence each.
It said it will use the proceeds to fund its participation in an exploration well being drilled on the Foum Assaka Licence Area offshore Morocco.
Earlier this month the company, Fastnet said it had selected an unnamed preferred bidder for the farm-out of an interest in the Foum Assaka licence and had gone into exclusive talks with the company. Under a potential deal, Fastnet is expected to farm-out a share of its interest in the licence area in return for contributions towards costs already incurred and also drilling activities in 2014.
Fastnet reiterated that it expects to complete the farm-out in the first quarter of 2014 and the money raised in the placing will see it through until then.
It said it will also use the proceeds of the placing, which was sold to new and existing investors, to farm into the Tendrara-Lakbir Licence Area onshore Morocco. Under the farm-in deal, it will drill an appraisal well to earn a gross interest of 50% of the licence area.
The placing means its now fully funded for its expected 2014 Moroccan activities, as long as the farm-out deal is confirmed.
Fastnet shares were down 0.5% at 14.675 pence Wednesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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