Improvement of Deep Kinsale Option

14 August 2014

Fastnet Oil & Gas plc

("Fastnet" or the "Company")

FASTNET IMPROVES TERMS OF AND EXTENDS EXCLUSIVE OPTION AGREEMENT TO FARM IN TO THE "DEEP KINSALE PROSPECT" BENEATH THE KINSALE HEAD GAS FIELD

Fastnet (AIM: FAST, ESM: FOI), the UK and Irish listed E&P company focussed on near-term exploration and appraisal acreage in Morocco and the Celtic Sea, is pleased to announce that it has entered into an amended exclusive option agreement with PSE Kinsale Energy Limited ("Kinsale Energy"), a wholly owned subsidiary of PETRONAS, in relation to the "Deep Kinsale Prospect". The Deep Kinsale Prospect extends from 4,000 feet subsea below the producing Kinsale Head gas field and is defined by a sub-area (the "Deep Kinsale Sub-Area") of Petroleum Lease No. 1 (see map of the area on the Company's website:

www.fastnetoilandgas.com/go/operations/ireland).

Following agreement with Kinsale Energy, Fastnet has secured improved commercial terms from those previously announced on 21 February 2013 and which the Board believes will assist in the current farm-in process. The revised terms include:

· Extension of the Option Agreement to 31 March 2015

· Commitment to commence drilling of a well ("Farm-in Well") extended to on or before 31 December 2016

· Deletion of the Kinsale Energy back-in option,which had allowed Kinsale Energy to increase its interest in the Kinsale Deep Sub-Area by 10%, by paying for 16.667% of the drilling and testing costs of the Farm-in Well

· Removal of Kinsale Energy's right to increase its working interest by up to 15% for no consideration if there is a commercial development, the level of such increase dependent on the level of production

· Upon completion and, if warranted, testing of the Farm-in Well and funding 100% of all drilling and testing costs, Fastnet's net equity interest shall be fixed at 60% working interest in the Deep Kinsale Sub-Area

The assignment of working interest in the Deep Kinsale Sub-Area following completion of the Farm-in Well is subject to the consent of the Minister for Communications, Energy and Natural Resources.

Paul Griffiths, Managing Director of Fastnet, commented:

"The new terms of the Deep Kinsale Prospect greatly improve the project economics and significantly improves materiality for Fastnet and any potential Farminee. The extension of the deadline to exercise the option and the commencement of a well works well with our timeline to complete a Farmin transaction from our ongoing process. Fastnet has considerably advanced the technical understanding and de-risked the opportunity at Deep Kinsale based on our extensive interpretation of our newly acquired 3D seismic data (2013). Fastnet has progressed potential farmin discussions with a number of industry players and we seek to close out a transaction with a potential drilling partner for Deep Kinsale and recover substantial past costs to further strengthen our already significant discretionary cash balances."

Revised Investor Presentation

The Company is pleased to have published an updated corporate presentation which will available on the Company's website shortly.

http://www.fastnetoilandgas.com/investor-relations/presentations/2014.aspx.

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 strategies Offshore Ireland and On and Offshore Morocco. In Ireland it holds four offshore licensing options in the Celtic Sea (Molly Malone Basin, Shanagarry, 49/13 and Mizzen Basin). In Morocco Fastnet holds a material interest in the onshore Tendrara permit and a significant interest in the highly prospective 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.

About PETRONAS

Petroliam Nasional Berhad (PETRONAS) is Malaysia's fully integrated oil and gas multinational ranked among the largest corporations on FORTUNE Global 500®. Operating our core business in the Upstream and Downstream sectors, we have a presence in more than 65 countries since we were first incorporated in 1974. We are among the top five oil and gas companies (in terms of production) and the most profitable company in Asia. We are steadily driving for new solutions and pushing boundaries to develop and add value to oil and gas resources in a manner that carefully balances commercial, environmental and social considerations.

www.petronas.com