Fastnet Oil & Gas makes first-ever purchase with 18.75pc stake in Moroccan oil discovery
FASTNET Oil & Gas, the new exploration company backed by Raglan Capital and Cove Energy boss John Craven, made its first acquisition yesterday, buying another company in a "potentially transformative deal".
The company will pay $8m (€6m) for Pathfinder Hydrocarbon Ventures, a Jersey-based firm that has a near 20pc share in an oil discovery off the Moroccan coast.
In a statement, Fastnet said it would take an 18.75pc share in the 'Foum Assaka' offshore petroleum agreement and exploration permits, offshore Morocco.
The company did not produce any profits last year.
The acquisition was "in line with the firm's stated strategy", said the company, and bears the hallmarks of its major shareholder John Craven, who stands to make a fortune from the sale of the African-focused firm he chairs, Cove Energy.
Davy Stockbrokers analyst Caren Crowley said the deal was "attractive for a number of reasons".
"It expands the portfolio, adding a tradable level of equity in a high-risk but high-potential licence that is governed by an attractive fiscal regime consistent with first-mover advantage," she said.
Meanwhile, Tullow Oil said it found oil and gas at a well off the Ghana coast.
The firm said the 'Wawa-1' exploration well had discovered 20m of gas-condensate pay and 13m of good quality, light oil pay. Tullow owns 49.95pc of the block and is operating the site.
While a relatively small discovery, Davy Stockbrokers said the site could add roughly nine pence to its share valuation of the company.
Tullow closed the day up €18 in Dublin, Fastnet was flat at 11p in London.