1st Jun 2015 08:45
LONDON (Alliance News) - Fastnet Oil & Gas PLC on Monday said it has seen a significant fall in general and administrative costs in the year so far and said it is continuing to evaluate potential acquisition opportunities.
Fastnet, which operates in Morocco and the Celtic Sea, said its overheads have fallen by 40% in the year to date, down to USD1.9 million per year, and the group is making further corporate and overhead cost reductions.
Fastnet also said it has submitted applications for new licensing options over the Molly Malone and Mizzen licence areas in the Celtic Sea. It is currently in the process of putting together new resource estimates for its existing licence areas in the region.
In addition, Fastnet said it is continuing to evaluate merger and acquisition opportunities while focusing on developing its Celtic Sea portfolio.
"We have been conducting detailed due diligence on a number of merger and acquisition opportunities in the sector, but as of yet have not identified one which would be accretive to shareholders and therefore be a suitable use of our available cash," said Fastnet Chief Executive Carol Law.
"In the immediate future we will continue to scrutinize costs to further reduce overhead and evaluate targeted merger and acquisition opportunities aimed at enhancing value for our shareholders," Law added.
Fastnet shares were down 2.1% to 2.30 pence on Monday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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