Government approval for Foum Assaka farm in

16 October 2012

Fastnet Oil & Gas plc

Joint Ministerial Order approving the Foum

Assaka Offshore assignment to Kosmos

Fastnet Oil and Gas plc ("Fastnet" or the "Company") (AIM: FAST, ESM: FOI), the recently listed E&P company focussed on near term exploration acreage in the Celtic Sea and Africa, is pleased to announce that following the acquisition of Pathfinder Hydrocarbon Ventures Ltd ("Pathfinder") as announced on 18 July 2012, it has been granted Government approval, through a Joint Ministerial Order, of the farm-down from Pathfinder to Kosmos Energy Deepwater Morocco ("KEDM") on the Foum Assaka licence area.

Dr.Steve Staley, CEO of Fastnet, commented:

"We are delighted to have been awarded Government approval for the farm-down to Kosmos Energy. The Foum Assaka licence area, offshore Morocco, is in a region that is attracting a lot of industry attention and with very prospective deepwater geology. We are pleased we are working with one of the most respected deep water explorers and look forward to updating the market as we progress towards exploratory drilling."

Further details on the Foum Assaka licence area are set out below.

Foum Assaka

The Foum Assaka Offshore Petroleum Agreement includes four Exploration Permits (Foum Assaka I, II, III and IV) that cover an area of 6,473 km2 in the offshore Agadir Basin in water depths ranging from 300 metres to 2,100 metres. To date, no well has been drilled within the Foum Assaka permits. Two wells have been drilled in the outboard basin area; critically there has been no valid test of the main objective which is the Tertiary turbidites. The current Foum Assaka Petroleum Agreement was applied for by Pathfinder and subsequently awarded to Pathfinder and KEDM, following an invitation from Pathfinder to Kosmos to join the Licence Application, on 4th May 2011, with the Moroccan state oil company, ONHYM, as the third member of the contractor group. The Petroleum Agreement is held under the terms of the Moroccan Hydrocarbon Code.

Initial exploration

The initial exploration period under the Foum Assaka Licence is two and a half years, effective from 1 July 2011 (the "Initial Exploration Period"). During the Initial Exploration Period, KEDM and Pathfinder have agreed to acquire, process and interpret 2,500 km2 of 3D seismic data, the minimum exploration work programme agreed with ONHYM was for 500 km2 of 3D seismic data ("Minimum Exploration Work Programme").

Farmout Agreement

Prior to the issue of the Joint Ministerial Order, Pathfinder held a 37.5% economic interest (50% paying interest) in the Foum Assaka Licence. In November 2011, Pathfinder entered into a farmout agreement with KEDM (the "Farmout Agreement") under which:

·; Pathfinder receive a payment of US$1.0 million; and

·; KEDM carry Pathfinder, capped at a gross cost of US$16.2million, for the Minimum Exploration Work Programme agreed with ONHYM for the Initial Exploration Period

·; Pathfinder sold an 18.75% economic interest to KEDM, hence Pathfinder now hold an 18.75% economic interest in the Licence

The Farmout Agreement was subject to the issue of the Joint Ministerial Order, following approval from the Moroccan Minister of Energy, which has now been received.

Working Capital

The funding requirement for Fastnet to June 2013 arising in respect of the acquisition of Pathfinder and the associated work programme under the Foum Assaka Offshore Petroleum Agreement licence is currently expected to be approximately £1.05 million.

Information on the Foum Assaka Block

Previously the northern half of the Foum Assaka Petroleum Agreement Area was held by Shell which relinquished the area in 2006. The reservoir fairways in the Licence Area are prospective for Cretaceous fan prospects that are expected to be identified following the interpretation of the new 3D seismic acquired earlier this year. The shelf slope Cretaceous fan play has not been tested in the Agadir Basin and represents a major opportunity for increasing the resources potential of this basin.

For further information, please contact: