Interim Results

Fastnet Oil & Gas plc

("Fastnet", the "Company" or the "Group")

Interim Results for the six months ended 30 September 2013

London, 19 December 2013: Fastnet (AIM: FAST, ESM: FOI), the listed E&P company focused on near-term exploration acreage in Morocco and the Celtic Sea, announces its interim results for the six month period ended 30 September 2013.

Operational Highlights

· Substantial prospect inventory being matured on and offshore Morocco

· Successful entry into an exclusive option agreement with Oil and Gas Investment Funds to farm into eight exploration permits comprising the Tendrara Lakbir Petroleum Agreement, onshore Morocco

· Completed the largest ever 3D seismic survey in the Celtic Sea, covering a total area of 1,910 km2, acquired over the Mizzen and East Mizzen (1,400 km2) and Deep Kinsale (510 km2) areas

Financial

· Cash at 30 September 2013: US$10.9 million

· Net loss for the period of US$856k

· Fully funded to exploit portfolio to drive shareholder value through an active drilling programme both offshore and onshore Morocco in 2014

Post-period

Morocco

· Farm-out agreement signed with SK Innovation for Foum Assaka Contract Area, for a contribution towards past costs incurred and up to two well carry comprised of a carry in the first exploration well on the Eagle Prospect (FA-1 Well) and first appraisal well (capped at US$100 million per well) or at SK Innovation's discretion a carry in a second exploration well (capped at US$100 million)

· Well planning underway for the FA-1 well in the Foum Assaka Contract Area, which Kosmos Energy Deepwater Morocco estimates to contain 360 mmboe of Pmean resources

· Publication of independent assessment of the Tendrara-Lakbir Licence Area showed a range of Gross Contingent Recoverable Resources from approximately 311 BCF (Best Estimate) to 892 BCF (High Estimate) for the TE-5 Structure

Ireland

· Celtic Sea farm-out process in relation to all or part of its Celtic Sea assets is ongoing with several targeted international oil and gas companies with a view to concluding in such a timeframe that allows a potential 2015 drilling program

Financial

· Successful £10.0 million fundraising before expenses through an oversubscribed placing of 71,428,578 new ordinary shares in the capital of the Company leaving the Company well capitalised

Cathal Friel, Executive Chairman of Fastnet, commented:

"Fastnet has continued to make excellent progress this year. We have significantly increased our acreage position onshore Morocco following the entry into an exclusive option to farm-in to the Tendrara-Lakbir Petroleum Agreement, which we now plan to exercise and drill an appraisal well. The Company also completed the largest ever 3D seismic survey in the Celtic Sea, an area which has seen renewed industry exploration interest following the successful Barryroe appraisal well in 2012 and more recently in 2013 Statoil's Bay du Nord Discovery in the geologically analogous Flemish Pass Basin, offshore Canada.

"Since the period end, we have successfully raised £10.0 million through an oversubscribed placing and entered into a farm-out agreement with SK Innovations in the Foum Assaka Contract Area, offshore Morocco, with well planning now underway for the FA-1 well on the Eagle prospect. Offshore Morocco has attracted high calibre new entrants in the past 12 months including BP, Chevron, Cairn Energy, Galp, Genel and Total and this exciting exploration province remains a key focus of industry attention. Fastnet will be at the forefront of significant near term drilling activity planned over the next two years.

"Going into 2014, Fastnet has a strengthened balance sheet and is now fully funded to exploit its portfolio to drive shareholder value through an active drilling programme both offshore and onshore Morocco in 2014 and through participation in high impact exploration opportunities offshore Ireland by completing our farm-out process."

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Chairman's and Managing Director's Statement

We are pleased to report on the progress of Fastnet Oil & Gas plc ("Fastnet" or the "Company") and present the unaudited interim results for the six month period ended 30 September 2013.

Operations Review

Fastnet was admitted to trading on AIM and ESM in June 2012. Since admission, Fastnet has established a portfolio of interests in potentially high impact exploration prospects in both onshore and offshore Morocco and offshore Ireland.

Fastnet now has over 25,000 km2 under licence in two emerging industry "hot spots". The Board believes that the establishment of this portfolio has the potential to drive shareholder value through an active drilling program scheduled in 2014 both offshore and onshore Morocco.

Offshore Morocco

In July 2012 Fastnet acquired Pathfinder Hydrocarbon Ventures Limited ("Pathfinder"). Pathfinder's key asset at the time of the acquisition was a 25% gross (18.75% net) working interest in the Foum Assaka Contract Area in the Agadir Basin, Offshore Morocco ("Licence Area"). Offshore Morocco is an emerging hydrocarbon basin that has attracted high calibre new entrants in the past 12 months including BP, Chevron, Cairn Energy, Galp, Genel and Total. There will be significant near term drilling activity offshore Morocco with up to 12 wells planned by the industry in the next two years.

The Licence Area covers approximately 6,500 km2 and is operated by Kosmos Energy Deepwater Morocco ("Kosmos"). Kosmos is an international oil and gas exploration and production company that was the technical operator for the Jubilee Field discovery, offshore Ghana.

In October 2013 Kosmos announced that it had entered into a farm-out agreement with BP plc ("BP"), to earn a 26.325% participating interest (35.100% paying interest) in the Licence Area, the farm-out agreement remains subject to regulatory consent by the Moroccan authorities. The Directors believe this to be an unequivocal validation by the oil industry of the potential of offshore Morocco as a resurgent exploration province and in particular establishes the prospective materiality of the Licence Area to a deepwater explorer such as BP.

On 18 December 2013, Fastnet announced that it had entered into a farmout agreement ("Farmout Agreement") with SK Innovations Ltd ("SK Innovation"). Under the terms of the Farmout Agreement, Fastnet will receive up to a two well carry comprised of a carry in the first exploration well on the Eagle prospect and first appraisal well (capped at US$100 million per well) or at SK Innovation's sole election to participate a carry in a second exploration well (capped at US$100 million) for a 9.375% participating interest (12.5% paying interest) in the Licence Area. SK Innovation shall also pay to Fastnet the sum of US$3,220,900, which represents a 25 per cent share of costs incurred by Pathfinder up until 1 October 2013. In addition, SK Innovation shall pay 25 per cent of actual costs incurred by Pathfinder from 1 October 2013 to 1 January 2014 and any pre-drill costs directly attributable to the FA-1 well being the first well drilled on the Eagle prospect. Completion of the Farmout Agreement is subject to the customary closing conditions and regulatory approvals.

The Directors are pleased to report that well planning is underway for the FA-1 well in the Licence Area, which the operator estimates to contain 360 mmboe of Pmean resources. The well is scheduled for drilling in late Q1 2014 and will primarily target Lower Cretaceous reservoirs together with multiple secondary reservoir objectives with a provisional total depth of 4,500 metres in water depth of approximately 600 metres.

Onshore Morocco

In line with its "early mover" strategy, on 29 May 2013, Fastnet entered into an exclusive option agreement ("Option") with Oil and Gas Investment Funds ("OGIF") to farm into eight exploration permits comprising the Tendrara Lakbir Petroleum Agreement (the "Tendrara-Lakbir Licence"), onshore Morocco, through its wholly owned subsidiary Pathfinder. Upon completion of the Option and of an earn-in well, OGIF will transfer to Pathfinder a gross interest of 50% (37.5% net) in the Tendrara-Lakbir Licence.

The Tendrara Lakbir Licence covers an area of 14,548 km2and is the largest licence in Morocco over the proven Triassic Tagi gas play. Five wells drilled within the Tendrara-Lakbir Licence Area have encountered gas-bearing Triassic sands of the Tagi Formation, which is the host reservoir for Morocco's producing Meskala gas field. All these gas discoveries have been charged from the prolific Silurian source rocks that are an integral part of the proven Palaeozoic-Early Mesozoic petroleum system covering large parts of Libya, Algeria and Morocco.

In November 2013, SLR Consulting completed an independent assessment of the Tendrara-Lakbir Licence Area which showed a range of Gross Contingent Recoverable Resources from approximately 311 BCF (Best Estimate) to 892 BCF (High Estimate) for the TE-5 Structure. Significant "running room" was also identified in five additional gas prospects. An important step in validating this resource potential will be the drilling of an appraisal well by Q3 2014 in the TE-5 Structure, designed to optimise the well deliverability from the gas-bearing Triassic sands of the Tagi Formation. This will potentially de-risk a gas field development for the gas already encountered in the TE-5 Structure and confirm the potential for further exploration upside.

The Board believes that the Tendrara-Lakbir Licence provides the Company with a second high-impact but lower risk opportunity given that the same geology is proven to be hydrocarbon productive in the Meskala Field on trend.

Offshore Ireland

With an area of 4,028 km2 under licence, Fastnet has now established one of the largest acreage positions of any independent in the Celtic Sea, offshore Ireland. There has, in the Board's view, been renewed exploration interest in the Celtic Sea following the successful Barryroe appraisal well in 2012 and more recently in 2013 Statoil's Bay du Nord Discovery in the geologically analogous Flemish Pass Basin, offshore Canada. The Company holds interests in five licensing options (Mizzen, Mizzen East, Block 49/13, Shanagarry, Molly Malone) and has executed an exclusive option agreement with PSE Kinsale Energy Limited, a wholly owned subsidiary of Petronas, to farm in to the "Deep Kinsale" Prospect from 4,000 feet subsea below the producing Kinsale gas field. These licensing options were selected by Fastnet as being the most attractive due to their significant prospective resources potential, based on existing 2D seismic coverage and the Directors' past experience in these specific areas.

In line with the Company's strategy to add value through early stage exploration, Fastnet completed the largest ever 3D seismic survey in the Celtic Sea in June 2013, covering a total area of 1,910 km2. The 3D seismic data was acquired over the Mizzen and East Mizzen (1,400 km2) and Deep Kinsale (510 km2). The Directors anticipate that this will de-risk and unlock prospective resource potential and should increase the likelihood of attracting a farm-in partner to participate in a future drilling programme, given the scale and materiality of the prospective structures already identified. Preliminary results and interpretation of the data is expected to be completed early in Q1 2014.

The Celtic Sea farm-out process is ongoing and the Company remains in discussions with several targeted international oil and gas companies. The farm-out terms are anticipated to initially involve a significant contribution to past costs, including 3D seismic and potentially, following further evaluation of the 3D seismic by the farminee, a contribution to a drilling programme which is currently anticipated in 2015. The level of any contribution to drilling costs will be dependent on which prospects are sufficiently de-risked for drilling by the farminee following their independent interpretation of the 3D seismic. It is the Company's objective to focus on potential partners that have a preference to help fund early drilling as this is consistent with the Board's monetisation strategy for shareholders. The discussions are progressing well and the Board now expects these to be concluded during 2014 in such a timeframe that is consistent with its preference for a potential 2015 drilling program.

Financial Review and Working Capital

The financial information in the interim report is presented in US$, with effect from 1 April 2013 the presentation and functionalcurrency of the Company was changed to US$ from £.

Fastnet is an early stage oil and gas exploration company with no revenue generated to date. The

Company is reporting a loss for the period of US$856k.

As at 30 September 2013, the Company had cash balances of US$10.9 million. In addition, in November 2013, the Company successfully raised £10.0 million before expenses through an oversubscribed placing of 71,428,578 new ordinary shares in the capital of the Company with new and existing investors at 14 pence per ordinary share (the "Placing"). The Placing was approved by shareholder resolution at a General Meeting of the Company on 16 December 2013. Accordingly, subject to the required regulatory approvals and completion of the Farmout Agreement the Company is now funded for its exploration activities through to the end-Q4 2014.

Outlook and Future Developments

The gross proceeds of the placing aggregated with the Company's existing cash resources (as at the end of Q3 2013) are approximately US$26.9 million. The Board intends to use the proceeds to fund participation in the exploration well (Eagle-1 well) being drilled in the Licence Area until such time as the formal completion of the Farmout Agreement ("Completion"). Completion will occur on satisfaction of customary conditions in relation to such transactions such as government approvals, the waiver of any pre-emption rights of the participants under the joint operating agreement ("JOA") and the consent of the other JOA parties. Under the Farmout Agreement, SK Innovation shall reimburse Fastnet pre-drill costs directly attributable to the FA-1 well.

On Completion the Board of Fastnet will utilise the proceeds of the Placing to accelerate progress in relation to its exclusive option over the Tendrara-Lakbir Licence. Following the exercise of the Option, the Board intends to commission an onshore rig to test and complete an appraisal/pre-development well on the TE-5 Structure within the Tendrara-Lakbir Licence.

Finally, the proceeds of the Placing will be applied to complete the processing and interpretation of the 1,910 km2 3D seismic survey undertaken over the Mizzen and Kinsale licenses offshore Ireland with a view to concluding a successful farm-out in relation to all or part of its Celtic Sea assets during 2014 in such a timeframe that is consistent with its preference for a potential 2015 drilling program.

Consolidated Statement of Comprehensive Income

For the six months ended 30 September 2013

*See note 2 re change in functional and presentation currency from £ to US$

*See note 2 re change in functional and presentation currency from £ to US$

*See note 2 re change in functional and presentation currency from £ to US$

*See note 2 re change in functional and presentation currency from £ to US$

Notes to the Interim Results

1. General Information

Fastnet Oil & Gas plc ("Fastnet" or the "Company") is a company incorporated in England and Wales. Details of the registered office, the officers and advisers to the Company are presented on the Company Information page at the end of this report. The Company's offices are in Manchester and Dublin. The Company is listed on the AIM market of the London Stock Exchange (ticker: FAST.L) and the Enterprise Securities Market of the Irish Stock Exchange (ticker: FOI).

The principal activity of the Company is oil and gas exploration.

The interim results of the Company for the six month period ended 30 September 2013 comprise the Company and its subsidiaries (together the "Group").

2. Basis of Preparation

The interim results have been prepared on the basis of the recognition and measurement requirements of International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU"), and their interpretations adopted by the International Accounting Standards Board ("IASB"). As is permitted by the AIM rules the Directors have not adopted the requirements of IAS34 "Interim Financial Reporting" in preparing the financial statements. Accordingly the financial statements are not in full compliance with IFRS and have neither been audited nor reviewed pursuant to guidance issued by the Auditing Practises Board. The accounting policies used in the preparation of the interim financial information are the same as those used in the Company's audited financial statements for the year ended 31 March 2013.

The financial information for the six months ended 31 September 2012 and 31 September 2013 is unaudited. The financial information presented for the year ended 31March 2013 is an extraction from the Group's audited accounts (which were prepared in £ but have been converted to US$ for this report as detailed below) on which the auditors issued an unqualified report, the information presented does not constitute full accounts for that period. The Directors consider that the financial information presented in this Interim Report represents fairly the financial position, operations and cash flows for the period, in conformity with IFRS. The Interim Report for the six months ended 30 September 2013 was approved by the Directors on 18 December 2013.

Presentation of Balances

The Financial Statements are presented in US Dollars ("US$") which is the functional and presentational currency of the Company and the functional currency of all the Group's subsidiary companies. Balances in the Financial Statements are rounded to the nearest thousand (US$'000) except where otherwise indicated.

Change in Functional Currency

IAS 21 "The Effects of Changes in Foreign Exchange Rates", describes functional currency as "the currency of the primary economic environment in which an entity operates". Following the reverse asset acquisition in June 2012 the Company and subsidiaries have been funded in Pounds Sterling ("£"), alongside incurring costs in £, Euro ("€") and US$. In the prior period the functional and presentation currency was determined across all Group companies to be £.

Having considered the aggregate effect of all relevant factors, the Directors have concluded that US$ is now the appropriate functional currency of all Group Companies with the change effective from 1 April 2013. This reflects the fact that US$ has become the predominant currency in the economic environment in which the Group's oil and gas exploration companies operate including the currency in which all work programme requirements are denominated. All funding requirements are received by the Company in £ with funds received translated on receipt to US$ to fund exploration work programmes denominated in that currency. All intercompany loan balances are maintained in US$.  In line with IAS 21 when there is a change in an entity's functional currency the change should take place with effect from the date the Group determined that the characteristics required to identify the functional currency had changed. The Group determined that this change occurred during Q2 2013 and is effective for accounting purposes from 1 April 2013. When there is a change in an entity's functional currency all items are translated into the new functional currency using the exchange rate at the date of the change. The exchange rate used at the date of the conversion was US$1.00:£0.6575.

Change in Presentation Currency

In addition to the change in functional currency, the Group has changed the presentation currency used for the financial statements of the Group from £ to US$, US$ being the primary currency of the oil and gas industry and of the economic environment in which the Group operates. Prior year balances have been translated at the exchange rate of US$1.00:£0.6575. In the use of this exchange rate, which is the closing rate used in the Group's Financial Statements for the year ended 31 March 2013, the movements in the relevant exchange rates in the prior periods were reviewed and the conversion of the balances in accordance with the requirements for a change in accounting policy as set out in IAS8 "Accounting Policies, Changes in Accounting Estimates and Errors" was considered. The movements in the relevant exchange rates were not considered to be significant. The Company has reviewed the comparability of the information presented for the prior periods, particularly noting the number of once off transactions, acquisitions, share issues and reverse takeover which makes the prior period once off in nature. The Directors have determined that the comparability of the prior period balances would not be enhanced by using a method of conversion other than that which was adopted by the Company.

3. Exploration and Evaluation Assets

List of Subsidiary Companies

Sterling Green Commercial Finance Limited was dissolved in October 2013.

4. Earnings per Share - Basic and Diluted

The Group presents basic and diluted earnings per share ("EPS") data for its Ordinary Shares. Basic EPS is calculated by dividing the profit or loss attributable to Ordinary Shareholders of the Company by the weighted average number of Ordinary Shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to Ordinary Shareholders and the weighted average number of Ordinary Shares outstanding for the effects of all dilutive potential Ordinary Shares, which comprise warrants and share options granted by the Company.

Calculation of EPS in prior periods

In the prior periods the denominator in the EPS calculation is derived by separately calculating and then combining the weighted average number of shares for the period pre-acquisition (reverse acquisition of Sterling Green Group plc by Terra Energy Limited) and the weighted average number of shares for the period post acquisition.

Weighted average number of shares for the period pre-acquisition (1 April 2012 to 11 June 2012): weighted average number of shares in issue in Terra Energy Limited ("Terra") for the period pre-acquisition multiplied by the exchange ratio (32.28:1) of Sterling Green Group plc shares received by Terra shareholders as part of the acquisition and divided by the consolidation ratio (38:1) of shares in the enlarged share group. Result of calculation: HY September 2012: 64,120,328, FY March 2013: 64,124,957.

Weighted average number of shares for the period post acquisition (12 June 2012 to 30 September 2012/31 March 2013): weighted average number of shares in issue for Fastnet Oil & Gas plc for the period post acquisition. Result of calculation: HY September 2012: 77,593,146, FY March 2013: 129,920,893.

The calculation of loss per share is based on the following:

Where a loss has occurred, basic and diluted EPS are the same because the outstanding share options and warrants are anti-dilutive. Accordingly, diluted EPS equals the basic EPS.

The share options and warrants outstanding as at 30 September 2013 and 31 March 2013 totalled 15,345,628 (30 September 2012: 5,835,628) and are potentially dilutive.

5. Subsequent Events

Successful placing of new Ordinary Shares to raise approximately £10 million

On 27 November 2013, Fastnet announced that Shore Capital Stockbrokers Limited and GMP Securities Europe LLP as joint bookrunners, have raised £10,000,000 before expenses through an oversubscribed placing of 71,428,578 new Ordinary Shares in the capital of the Company with new and existing investors at 14 pence per share. The placing was approved by shareholder resolution at a General Meeting of the Company on 16 December 2013.

Entry into Farmout Agreement with SK Innovations Ltd

On 18 December 2013, Fastnet announced that it had entered into a farmout agreement with SK Innovations Ltd ("Farmout Agreement"). Under the terms of the Farmout Agreement, Fastnet will receive up to a two well carry comprised of a carry in the first exploration well on the Eagle-1 Prospect and first appraisal well (capped at US$100 million per well) or at SK Innovations Ltd's sole discretion a carry in a second exploration well (capped at US$100 million) for a 9.375% participating interest (12.5% paying interest) in the Licence Area. Completion of the farm-out is subject to the customary closing conditions and regulatory approvals.

6. Copy of the Interim Report

Copies of the Interim Report are available to download from the Company's website at

www.fastnetoilandgas.com.