Fastnet 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.
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