Fastnet, the listed E&P company focused on near term exploration acreage in Morocco and the Celtic Sea, is pleased to announce that Shore Capital Stockbrokers Limited ("Shore Capital") and GMP Securities Europe LLP ("GMP"), as joint bookrunners, have raised £10 million (before expenses) through an oversubscribed placing of 71,428,578 new ordinary shares in the capital of the Company ("Placing Shares") with new and existing investors at 14 pence per share.
- The Board intends to use the proceeds of the Placing to fund Fastnet's participation in the exploration well being drilled on the Foum Assaka Licence Area ("Foum Assaka"), offshore Morocco until such time as the Company completes the formal farm-out agreement ("FOA"), further details of which were announced on 14 November 2013. The Directors anticipate that the FOA will be executed and announced in the coming weeks and completion of the FOA is expected to occur in Q1 2014.
- Under the FOA, Fastnet is expecting to farm-out a share of its interest in Foum Assaka in return for a contribution towards past costs incurred and also a carry through Fastnet's participation in the Foum Assaka exploration well.
- The proceeds of the Placing will also be utilised, upon exercise of the exclusive option agreement ("Option") to farm into the Tendrara-Lakbir Licence Area, onshore Morocco, for the drilling of an appraisal well to earn a gross interest of 50% of the licence area.
- Subject to the completion of the FOA and the exercise of the Option, the Company is now fully funded to exploit its portfolio to drive shareholder value through an active drilling programme both offshore and onshore Morocco in 2014.
- The Placing is conditional, inter alia, upon the passing of certain shareholder resolutions ("Resolutions") and the admission of the Placing Shares to trading on AIM.
- The General Meeting has been convened for 11.00 a.m. on 16 December 2013 to be held at the registered office of the Company at Number 14 The Embankment, Vale Road, Heaton Mersey, Stockport SK4 3GN for the purpose of considering the Resolutions.
Unless otherwise defined herein, defined terms used in this announcement have the meaning given to them in the shareholder circular published today.
Paul Griffiths, Managing Director of Fastnet commented:
"I am very pleased to announce this successful Placing. Fastnet has established a portfolio of over 25,000 km2 under licence in two emerging industry "hot spots" in both offshore and onshore Morocco and offshore Ireland and I welcome the support from new and existing shareholders as we progress towards exploration drilling in Morocco in early 2014.
"Following the recent entry into an exclusivity agreement with a third party to finalise a FOA in the Foum Assaka Licence, Fastnet is in a strong position of having a potential farm-in partner for near term exploration drilling offshore Morocco and, subject to the FOA being completed, the new money raised will allow the Company to drill an appraisal well on the Tendrara-Lakbir Licence, onshore Morocco.
"As we look towards an exciting period for the Company in 2014, Fastnet has a strengthened balance sheet and is focussed on delivering value to shareholders through participation in high impact exploration opportunities in its key areas of Morocco and offshore Ireland."
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