LONDON--Fastnet Oil & Gas PLC (FAST.LN), a company focused on exploration acreage in Africa and in the Celtic Sea, Wednesday announced the formal completion of its farm-out of a 9.375% interest in the Foum Assaka License, off-shore Morocco, to SK Innovation.
-Completion had been previously subject to receipt of a Joint Ministerial Order from the Moroccan Authorities confirming the farm-out and approval for the farm-out transaction from the Korean Ministry of Trade, Industry and Energy.
-SK Innovation is due to pay Fastnet accumulated back costs of $20.4 million.
-Fastnet is also carried through its share of the drilling costs for the FA-1 well, which is currently ongoing, up to a gross well cost of $100 million as well as either an appraisal well or, at SK Innovation's discretion, a further exploration well (also capped at $100 million gross).
-Fastnet holds its interest in the Foum Assaka license area through its subsidiary Pathfinder Hydrocarbon Ventures Ltd.
-Following completion of the transaction, Fastnet will hold a 9.375% interest in the Foum Assaka License, with Kosmos Energy Deepwater Morocco, a subsidiary of Kosmos Energy Ltd. holding 29.925%, BP PLC 26.325%, SK Innovation 9.375% and ONHYM the remaining 25%.
-Fastnet Oil shares at 1012 GMT traded up 0.38 pence, or 3.5%, at 11.25 pence, valuing the company at GBP38.9 million.
-Write to Razak Musah Baba at firstname.lastname@example.org; Twitter: @Raztweet
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