Fastnet has executed an exclusive option agreement (the "Agreement") with Kinsale Energy, a wholly owned subsidiary of PETRONAS, to farm into the "Deep Kinsale Prospect" from 4,000 feet subsea below the producing Kinsale Head gas field defined by a sub-area (the "Deep Kinsale Sub-Area) of Petroleum Lease No. 1.

The key terms of the Agreement are as follows:

• Deep Kinsale Sub-Area covers parts of Blocks 48/20, 48/25, 49/16 and 49/21;

• Exclusive option confined to geological formations below 4,000 feet subsea;

• Fastnet to acquire a minimum of 500 sq. km. of 3D seismic by 31 December 2013 and to complete geological and engineering studies;

• Fastnet to have an exclusive option to farm in, exercisable before 30 September 2014, by commencing a well ("Farm-in Well") on or before 30 November 2015 to test the Purbecko-Wealden reservoirs, productive in Barryroe;

• The Farm-in Well to be drilled to a provisional depth of 8,000 feet subsea;

• Upon completion and, if warranted, testing of the Farm-in Well Fastnet will earn a 60% working interest in the Deep Kinsale Sub-Area by funding 100% of all drilling and testing costs;

Tags: Fastnet Oil and Gas