Fastnet Oil & Gas Plc Ladenburg Thalmann Corporate ... · 5 Introduction Fastnet is an oil & gas Company primarily focused on exploration in frontier regions. Strategy • Seek high

www.fastnetoilandgas.com

Fastnet Oil & Gas Plc

Ladenburg Thalmann

Africa Upstream Conference

February 2014

Fastnet Oil & Gas Plc

Corporate Presentation May 2014

www.fastnetoilandgas.com

www.fastnetoilandgas.com 2

Disclaimer

This document is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published in whole or in part, for any purpose. In particular, neither this document nor any copy of it (or any part of it) may be sent to or taken into the United States, Canada, Australia, Republic of South Africa or Japan (or any of their respective territories or possessions, or to any resident thereof or any other corporation, partnership or other such entity created or organised under the law thereof), nor may it be distributed to or for the account or on behalf of any US person (within the meaning of regulation S under the US Securities Act of 1933, as amended). The distribution of this presentation in other jurisdictions may also be restricted by law and persons into whose possession this presentation comes (or a copy hereof) should inform themselves about, and observe, any such restriction. Any failure to comply with these restrictions may constitute a violation of the laws of any such other jurisdiction.

This document does not constitute or form any part of any offer or invitation or other solicitation or recommendation to purchase any securities and contains information designed only to provide a broad overview for discussion purposes. As such, all information and research material provided herein is subject to change and this document does not purport to provide a complete description of the investment opportunity. All expressions of opinion are subject to change without notice and do not constitute advice and should not be relied upon. Fastnet Oil & Gas plc (the “Company”) does not undertake any obligation to update or revise the information in or contents of this document. Recipients of this document who may consider acquiring shares in the Company are reminded that any such acquisition should not be made on the basis of the information contained in this document.

This document is being distributed in the UK only to, and is directed only at persons who are: (i) investment professionals as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) FPO 2005 (“the Promotion Order”); (ii) are persons of a kind described in Article 49(2) of the Promotion Order; (iii) are persons to whom this document may otherwise lawfully be issued or passed on and/or (iv) persons outside the United Kingdom (in accordance with any applicable legal requirements) (all such persons together being referred to as “Relevant Persons”). Any person who is not a Relevant Person should not act or rely on this presentation or any of its contents and any investment or investment activity to which it relates will only be available to Relevant Persons. Any person who is unsure of their position should seek independent advice. This communication is exempt from the financial promotion restriction in section 21 of the Financial Services and Markets Act 2000 (“FSMA”) on the basis that it is only directed at and being sent to the categories of investor described above. This communication has not been approved by a person authorised by the Financial Services Authority under FSMA.

This document is being distributed in Ireland only to and is directed only at persons who are “qualified investors” within the meaning of the Prospectus (Directive 2003/71/EC) Regulations 2005 of Ireland.

Neither the Company, nor its employees, advisers or representatives nor any other person makes any guarantee, representation, undertaking or warranty, express or implied as to the accuracy, completeness, correctness or fairness of the information and opinions contained in this document (or as to the reasonableness of any assumptions on which any of the same is based or the use of any of the same), nor does the Company nor its employees, advisers or representatives nor any other person accept any responsibility or liability whatsoever for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection therewith.

The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. If you rely on this communication to make an investment you may be exposed to a significant risk of losing all of your investment. This communication does not constitute either advice or a recommendation regarding any securities. Any person who is in any doubt about the subject matter of this communication should consult a duly authorised person specialising in advising on such investments.

This communication includes forward-looking statements. These forward-looking statements include all matters that are not historical facts, statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, the Company's results of operations, financial condition, prospects, growth, strategies, and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties. You are cautioned that forward-looking statements are not guarantees of future performance and that the Company's actual results of operations, financial condition and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this communication. Past performance is not a guide to future performance.

Company Overview

Moroccan Assets

Irish Assets

Outlook

Company Overview

Moroccan Assets

Irish Assets

Outlook


Company Funding

• Cash balance at end May 2014 – USD $22m

• In the next 18 months Fastnet will prudently manage cash resources to satisfy all current work

programme commitments whilst allowing for continued monetisation of the portfolio through

ongoing farm down discussions for carries in drilling and past costs.

• Fastnet executed this strategy successfully through Foum Assaka farm-out to SK for a Carried

Interest in the FA-1 well and has potential Carried Interest in a second well in Foum Assaka.

Management aim to replicate farm-out success in Tendrara option and the Celtic Sea.

• Celtic Sea farm-out discussions are progressing well following interpretation of the Mizzen and

Deep Kinsale 3D Seismic data. Deal terms to include contribution to past costs which currently

stand at USD $20m.

• Focus on maintaining current low operating costs of £110k per month by utilising external

consultants and advisors for specific value adding projects only.

• Explore concept of reserves based lending facility for Tendrara as TE-5 Lakbir structure already

has P90 reserves and TE-6 well is expected to de-risk deliverability and increase P90 reserves.

OVERVIEW


Introduction

Fastnet is an oil & gas Company primarily focused on

exploration in frontier regions.

Strategy

• Seek high equity positions in prospective assets

through identifying early entry or overlooked

exploration opportunities and near term value adding

appraisal in frontier regions

• Add value by leveraging management’s regional and

technical expertise and to bring in high calibre

partners

• Monetise assets at the opportune moment followed by

a return of cash to shareholders on an asset by asset

basis

Listed in London on the AIM (‘FAST’) and the Irish Stock

Exchange (‘FOI’)

OVERVIEW


Investment Case

• Early entry with excellent fiscal terms

• Significant acreage position (25,192km²) balancing high impact exploration and lower risk near term appraisal opportunities

• Fully financed for current 2014 work programme

• Carried on near term offshore exploration in Foum Assaka with high calibre partners

• Foum Assaka Project initiated, developed and drilled by first well FA-1 for a cost to Fastnet of less than USD $2.75 mm, representing effective management of risk and financial exposure

• Experienced management team with strong regional knowledge, in-house technical expertise, local relationships and proven ability to attract high calibre partners

• Steady pipeline of near-term newsflow onshore, offshore Morocco and in Ireland after the highly successful Celtic Sea Farmout Conference held on 30th April 2014 and attended by 20 international oil and gas companies including BP, Chevron, ConocoPhillips, ENI, ExxonMobil, Hess, Inpex and Shell

• Proven record of monetising assets before significant expenditure required to further develop exploration / appraisal success

OVERVIEW

Experienced Board & Senior Management

Paul Griffiths, Managing Director CEO of Island Oil & Gas Plc until its acquisition by San Leon

Energy Plc in 2009

Built and sold 3 oil and gas companies between 1999-2012

Senior geophysicist for Gulf Oil Corporation for Europe and

Mediterranean Region and Gulf R&D in Pittsburgh

Carol Law, Executive Director Former Exploration Manager, Anadarko East Africa

Responsible for the play finding Prosperidade gas complex in

Rovuma Area 1, offshore Mozambique

Also member of teams responsible for discoveries in Ghana

(Jubilee), Brazil (multiple Campos Basin discoveries)

Cathal Friel, Executive Chairman Managing Director and one of the founders of Raglan Capital in

2007

Former founding partner and Director of Merrion Capital

MBA from University of Ulster

Will Holland, Chief Financial Officer Former Associate Director at Macquarie bank where he originated,

structured and managed equity and debt investments in small-cap

E&P companies.

Previously worked at Halliburton Energy Services in various

technical & business development roles based in Africa & Europe

MBA from Heriot-Watt University

Michael Nolan, Non-Executive Director Former Founder and Group Finance Director of Cove Energy PLC

Currently CFO of Discover Exploration and Non-executive director

of Rathdowney Resources plc and Orogen Gold plc

Fellow of the Chartered Accountants Ireland

Value Creation

Sold IPDL to DNO ASA, after

reverse takeover of

Providence Resources Plc

collapsed in 2002, for an exit

price of $34 mm after

investing approx. $1.5 mm

100 TCF +

Carol led the Anadarko team

that discovered over 100 TCF

of natural gas in the Area 1

Block, Offshore Mozambique

100%

100% exploration

success rate offshore

Ireland with Island Oil &

Gas: 4 wells drilled, two

commercial gas fields

$2.64 billion

Sale price of a 10%

stake in Anadarko’s

Area 1 Block, Offshore

Mozambique

38+ years

Experience in oil

and gas exploration

and near term field

appraisal

30 years

Experience in oil

and gas industry

25+ years

Managerial

Corporate Finance

experience

20+ years

Experience in oil

and gas industry

€100 million

One of the founding directors

of Merrion Capital, where he

was part of the small team

that built the business and

sold it for c. €100m in 2006

$1 billion +

Value of successful

corporate transactions

on which Cathal has

advised

+$110 million

Managed Macquarie interest

in over $110 million of debt

and equity investments

Internal Control

Lead teams of internal

auditors at Halliburton

assessing accounting &

operation risks

THE TEAM

18+ years

Experience in

resource

exploration sector

+1900%

Share price increase between

the Cove Energy IPO in June

2009 and its sale in Aug 2012

$1.9 billion

Cove Energy was sold

to PTTEP in Aug 2012

after a competitive

auction process


Fastnet Oil and Gas PLC

Cathal Friel Executive Chairman

Paul Griffiths Managing Director

Carol Law Executive Director

Michael Nolan

Michael Edelson

Executive Directors Non - Executive Directors

Robert Murphy* Senior Project Geologist

John Tingas* Reservoir Engineer

Ross Crockett Finance and Back Office Support

Paul Griggs* Commercial Contracts Advisor

Brendan Tuohy* Licensing Consultant

Armira Zylyftari Licence Administration

Dr. Mahmoud Zizi Morocco Country Manager

Carl Kindinger* UK based Commercial / Financial Consultant

Moroccan Focused Team

Christian Klinkenberg Commercial & Operations Manager

Dennis Krahn* Morocco Drilling Manager

Bob Graham* Consulting Geophysicist

Michael Lynch Investor Relations Manager

Dr. Vivian Caston* Technical Advisor

*Consultants and Advisors for specific projects only

Will Holland Chief Financial

Officer

Company Overview

Moroccan Assets

Irish Assets

Outlook

Company Overview

Moroccan Assets

Irish Assets

Outlook


Industry Recognises that Multiple “Range-Finding” Wells will be Required to

De-Risk Reservoir Fairways and Unlock an Emerging Exploration Frontier Area

• Attractive fiscal terms – the value of producing 1bbl of oil

in Morocco is equivalent to the value of producing 13bbl

in Algeria or 7bbl in Nigeria

• Significant domestic demand for hydrocarbons with

attractive pricing

• Established export options through existing pipeline to

Europe

• New players in past 18 months include Chevron, BP,

Cairn, Genel and Glencore

• Politically stable with a constitutional monarchy and a

democratically elected Government

• Multiple wells planned by industry over the next 12

months: 5 offshore and 4 onshore wells already

scheduled for drilling in Morocco in 2014

• Longreach gas discovery begins to de-risk

exploration for onshore gas

• Fastnet management team an early mover in Morocco

beginning 2006

Near Term Drilling Activity

Fastnet “first mover” strategy prelude to industry recognising

Morocco as a key frontier exploration area (yellow)

MOROCCO

• Other Parties Active:


Offshore Morocco Play Fairway Analysis

MOROCCO

• Fastnet and its partners are

targeting a new play concept that

is untested in the Agadir Basin

• Deep Secondary Target favoured

by Fastnet and a target for

Chevron and BP offshore Nova

Scotia remains a key target in

Foum Assaka following the FA-1

well

• Exploration drilling offshore

Morocco has historically focused

on the Carbonate Shelf with no

commercial discoveries as yet

Analysis of 32 Wells drilled in Morocco

FA-1 Well


Foum Assaka – FA-1 Pre-Drill Well Design to Test Secondary Target Downdip

(Subsequently Replaced by Straight Hole)

• FA-1 Exploration Well spudded on the 16th March

2014 with designated “Tight Hole” status

• It reached TD of 3,830 meters on 30th April 2014

after encountering salt

• This was the first well in partnership with a super-

major (BP) in the Agadir Basin for 10 years and their

significant commitment to our area of operations

reflects the medium-term potential of this specific

area of offshore Morocco

MOROCCO


“Range-Finding” Wells FA-1 & FD-1 has Established Two End Points and the

Next Well Could Potentially Target the Prospective Central Sand Fairway

MOROCCO

End Point FA-1 Distal

Feather Edge Sands

End Point FD-1 Proximal

Slope By-Pass


Conclusions

1. Pre-stack Depth Migration of 3D seismic must be constrained by real well velocities for precise well

locations to test the Early Cretaceous Play, which is the principal target for BP and Chevron in the

conjugate margin equivalent of Nova Scotia

2. Emphasis on AVO and amplitude “technology”-driven definition of prospects is flawed pre-drill in the

absence of well data for calibration – back to basic geological principles: tie rock outcrops to seismic

sequence stratigraphy and historical changes in global sea level and focus on detailed seismic

geometries in prospective intervals

3. Prospectivity and remains intact after FA-1 which has de-risked all aspects of the petroleum system

apart from reservoir thickness and quality

MOROCCO


Tendrara Lakbir Option

Background

• Fastnet is seeking to appraise the TE-5 gas discovery in the TAGI

Triassic reservoir which is productive in Algeria and is also an analogous

producing reservoir in the Meskala field in the Essaouira Basin to the

West

• The Meskala Field has been producing and selling gas for several years

from reservoirs similar in quality to those tested in TE-5

Overview

• 14,548 sq. km. over prospective Missour Basin

• Largest licence in Morocco over the proven Triassic Tagi gas play

Near term Prospectivity

• TE-5 Structure flowed 1.4 mm cfgpd on extended well test

• No pressure depletion observed on testing

• SBK-1 drilled in 2000 flowed initially at 5 mm cfgpd from TAGI Triassic

reservoirs

• Declined to 2.5 mm cfgpd – potential permeability barrier caused by fault

close to well bore (based on 2D seismic interpretation)

• TE-5 Structure defined by a 488 sq. km. 3D seismic survey (2004)

Equity & Partners

• Partners: Oil and Gas Investments Funds (“OGIF”); ONHYM

• Commercial terms of option being finalised with OGIF prior to executing

rig contract

MOROCCO


Tendrara Independent Resource Estimates: November 2013

TE5-Lakbir Prospect: Gross and Net Contingent Resources

LOW BEST HIGH

Recoverable BCF (100%) 30.1 310.5 891.9

Recoverable BCF (37.5%

Net) 11.3 116.4 334.5

NPV per BCF (US$mm) 2.29

Chance of Success 22%

Risked Value (ENPV

US$mm) 58.3

Source: SLR CPR November 2013

Running Room has also been identified in five additional gas prospects

MOROCCO

• New study by NuTech quantifies reservoir properties for the Triassic TAGI Sand consistent with good potential gas flow rates from a gross gas-bearing interval in TE-5 of 82.2 meters

• New reservoir engineering study supports robust development cases, subject to a successful validation of flow rates in an appraisal well to the TE-5 discovery and a step-out appraisal well to the northeast of the TE-5 discovery

• New Independent Resources Estimates based on these desk top studies and a review of historical published estimates, that were not previously validated by an independent Competent Persons Report, give resource estimates as follows:


Tendrara Lakbir – Proposed TE-6 Appraisal Well

MOROCCO

TE-6 PROVISIONAL LOCATION

Lakbir: TE-6 Provisional Well Location (Area of Closure 16,600 Acres)

• The proposed TE-6 appraisal well will not

only evaluate maximum deliverability but will

also prove up a resources case that will

allow approximately 130 BCF of the 310.5

BCF Best Estimate Prospective Contingent

Resources to be moved to Proven Case that

will allow an initial development case to be

economically viable

Derisked Value to Fastnet: c.19 pence per

share*

• Subject to bringing in an additional partner at

an opportune time, a second appraisal well

would establish up to 891.9 BCF of the high

estimate Contingent Resource to provide the

economic case for a much larger

development scenario.

Derisked Value to Fastnet: c.133 pence per

share*

TE-5 LOCATION

* Source: Management Estimates and SLR CPR November 2013


African Gas-to-Power Opportunity

MOROCCO

• Generation and Transmission Infrastructure Shortfall in Africa

• Nigeria Population 170 Million and Generating Capacity of 4,000 MW

• By Comparison New York has a Generating Capacity of 13,000 MW

• 470 MW of Existing Gas Power Capacity in Morocco (pop. 33 million)

• 4,000 MW Planned Increase in Gas Power Capacity (requiring 600 mm cfgpd)

• 367% Increase in Gas-Fired Electricity Generation Forecast by 2023

Source: Marrakesh Conference May 2014


Fastnet Gas Monetisation Options

Monetisation of a commercial gas

development can be achieved through

two main routes:

• Gas-to-power for the indigenous

market. Morocco seeks to become

increasingly dependent upon

electricity generated by gas. OGIF,

Fastnet’s partner, is owned by some

of the biggest financial institutions in

Morocco who would help finance

gas-to-power projects

• The Maghreb-Europe Gas Pipeline

(GME) is a key piece of North

African infrastructure and currently

transports gas from Algeria to

Spain. Morocco is entitled to 14%

transport capacity rights which is

significantly under-utilized. Fastnet

could build an interconnector to the

GME which is located only 120km’s

from the TE-5 Lakbir structure

MOROCCO

Company Overview

Moroccan Assets

Irish Assets

Outlook

Company Overview

Moroccan Assets

Irish Assets

Outlook


Celtic Sea – Fastnet Licensing Options & Analogues

Pre-Atlantic opening tectonic elements

showing important discoveries/fields

and locations of Licensing Options

Areas chosen for:

• Attractive petroleum geology

• Major reserves potential

• Existing seismic expected to improve

with modern processing

• Fastnet management experience in the

specific areas

• Exploration interest increasing due to

recent Flemish Pass Basin discovery

Statoil’s 2013 Flemish

Basin Discovery

IRELAND


Celtic Sea Offshore

Highly prospective basin

capable of delivering significant

near-term production

• Attractive petroleum geology with

major reserves potential: largest

producing gas field at Kinsale

Head, large prospects with well-

understood large-field analogues

and existing infrastructure

• Underexplored, applying new

technologies to de-risk by analogy

with surrounding oil and gas

discoveries

• Shallow water prospects: easier to

monetise than deepwater Irish

Atlantic Margin

• Largest ever 3D seismic survey

undertaken in Summer 2013

(1,910km2)

- Mizzen 1,400km2

- Kinsale 510km2

DEEP

KINSALE

MOLLY

MALONE

MIZZEN &

Mizzen East

SHANAGARRY BLOCK 49/13

AREA 285 km2 648 km2 1942 km2 881 km2 272 km2

WATER DEPTH c. 100 m c. 100 m c. 100 m c. 100 m c. 100 m

FASTNET INTEREST 60% 100% 100% 82.35% 85%

DEEP

KINSALE

IRELAND

23

• World Class Producing Field Validates Trap and Potential For Material Resources

• Presence of Gas Gathering Infrastructure

• Old Regional High that has been Focal Point for Reservoir Development

• Proven Mature Oil and Gas Source Rock with De-risked Hydrocarbon Charge

• Multiple Material Objectives

1. Middle Wealden Oil (48/20-1a) up to 1+ BBO in-place*

2. Upper Purbeck Oil (48/25-1tilted fault block structures) up to 1+ BBO in-place*

3. Upper Purbeck Oil (Untested Closure with “mounding”) up to 4+ BBO in-place*

4. Upper Jurassic intra-Purbeck (22 feet oil sands 48/25-1) Oil Resources TBC

(Within Over-Pressured Interval)

5. Middle/Basal Upper Jurassic (fractured platform edge) Dry Gas – Resources TBC

(Proven Play at Helvick, 49/13-2, 50/6-1, 50/6-3, Shanagarry

and Dragon Field)

• Completely Covered for the First Time by 3D Seismic

• New 3D Seismic has for the First Time Imaged Deeper Oil and Gas Structures

*Company Estimates

Why Deep Kinsale?

IRELAND: DEEP KINSALE

24

Geo-Cartoon from Arbitrary 3D Seismic Line

Potential reservoir bearing packages thicken into active Late Jurassic to Early Cretaceous Faults

Prospect E

Deep Kinsale Prospect A

49/9-2 “Helvick” Oil & Gas Play

Base Chalk

Lwr. Wealden Sands

Middle Wealden

Upper Jurassic

Upper-Middle Jurassic

Mounding in Purbeck

Northern Bounding Fault

Kinsale Field 1.7 TCF Gas

Prospect K

Southern Bounding Fault

Source

Reservoir Prone

Deep Liassic Source?

Approx. Licence Limit (4000ft)

• Up to 1030ft

(391m) of

mapped closure

at crest

• Crest approx.

7130ft (2173m)

North

SE

North South East

Deep Kinsale – Multiple Objective

Middle Wealden

25

3D Seismic for the first time de-risks reservoir and compartmentalisation

issues – of key significance to the oil majors


Thin

Thick

Mounding

26

Geo-Cartoon Based on 3D Seismic Arbitrary Line Showing Stratigraphic

Trapping Potential

IRELAND: MIZZEN BASIN

• New Celtic Sea Frontier Basin

• Conjugate Margin Equivalent is

Flemish Pass/Hibernia

• Discovered oil exists

immediately to south in Fastnet

basin

• New 3D Seismic highlights

potential gas anomalies with

multi-TCF in-place potential

• New 3D Seismic confirms

potential for material

structural/stratigraphic traps

• Multiple material objectives

• Completely covered for the

first time by 3D Seismic


First-ever 3D Seismic Example of an Amplitude Driven Structural Lead

IRELAND: MIZZEN

Bright “soft” amplitudes

Bright amplitudes

Depth ~3500ft

Multiple

Purbeck?

Base Chalk?

Top Chalk

Bright amplitudes 6km²

Amplitudes on Structure

Fault

Fault

A

B

A

B

A

B

Bright

B

Supports presence of gas


Celtic Sea Portfolio – A Maturing “Blue Sky” Opportunity

• Fastnet’s acreage portfolio in the Celtic Sea remains a strong candidate for a farmout during 2014

• Fastnet’s acquisition & processing of 1,910 sq. km. of 3D seismic in 2013 is generating more diversified interest in

the Celtic Sea – 2013 industry attention was focussed only on resolution of the Barryroe farmout

• Industry focus is now on conjugate margin comparisons with offshore Eastern Canada – Statoil Flemish Pass

oil discovery in 2013 was a timely and opportune catalyst (up to 600 mm BO recoverable)

• The Ukraine-Russia stand-off has increased fears for security of gas supply (Gazprom provides 30% of Europe’s

gas) – exploration for gas in the Celtic Sea is attractive given the presence of infrastructure

• Fastnet’s 3D seismic is confirming the materiality of the structures mapped on legacy 2D seismic – 100+ sq. km.

closures prospective for gas and oil

• Fastnet’s medium term strategy is to target a multi-well Celtic Sea drilling programme in 2016 - achieved by:

1. Initial farmout to recover Past Costs to partner company with the necessary financial & technical resources to address the

challenging geology & seismic data quality issues of the Celtic Sea – establishes Market credibility in the ability to attract partners

2. Second farmout for a carry in well(s) following maturing and de-risking of prospects for drilling in 2015/2016

IRELAND


Company Overview

Moroccan Assets

Irish Assets

Outlook


OUTLOOK

Prospect Activity 2014 2015

Q2 Q3 Q4 Q1 Q2 Q3 Q4

OFFSHORE

MOROCCO

(Foum Assaka)

Drill First Well

Evaluate FA-1 Well Results

Drill Second Non Obligation Well

Possible Appraisal or Exploration Well

Subject to Evaluation of FA-1 Results

Evaluate Well Results

ONSHORE

MOROCCO

(Tendrara Lakbir)

Rig Contract

Drilling Preparation EIS Study

Complete seismic pre-stack depth migration

Mature Prospect Portfolio

Drill First Appraisal Well

Drill Second Non Obligatory Appraisal

Well/POD Submission

OFFSHORE

IRELAND

(Celtic Sea)

Celtic Sea Farmout/workshop

(Joint Initiative by Celtic Sea operators)

3D Seismic Interpretation/AVO Processing

Stage 1 & Stage 2 Farm Outs

Multi-Well Programme Planning for 2016

Forward Work Programme

* Red Text denotes near-term Share Price Drivers


Summary – Steady pipeline of near term news flow in Morocco and Ireland

• Steady pipeline of near term news flow onshore and offshore Morocco (Longreach’s Kamar-1 well found

substantial natural gas resource potential at Sidi Moktar in Morocco – significant positive impact to share

price)

• Multi-well drilling programme in 2014 by other operators around Fastnet’s Moroccan assets

• Potential drilling success may crystallise Fastnet’s exit strategy

• Farm down of Fastnet’s exposure to the Foum Assaka deep-water drilling programme was prudent to

maintain a balanced risk-reward exposure to protect and enhance current cash resources

• Equity levels in Tendrara Lakbir onshore drilling option expected to be maintained at current levels based

on much lower onshore drilling costs; lower risk of exploiting discovered gas; and potential for earlier

monetisation

• However Fastnet has flexibility, given the interest in gas-to-power projects onshore Morocco, to seek an

additional partner for Tendrara Lakbir to advance the scope for early monetisation of the TE-5 gas

discovery

OUTLOOK


Appendices

Fastnet Oil & Gas

Appendices


Frontier Exploration Asset Overview

Licence Name Region Area Fastnet Interest

Gross Net Partner Operator

Tendrara Lakbir Onshore Morocco 14,687 km2 50% 37.5% ONHYM, OGIF Fastnet

Foum Assaka Offshore Morocco 6,478 km2 12.5% 9.375% Kosmos, BP, SK Kosmos

Mizzen Basin Offshore Ireland 787 km2 100% 100% n/a Fastnet

Mizzen East Offshore Ireland 1,155 km2 100% 100% n/a Fastnet

Deep Kinsale Offshore Ireland 285 km2 60% 60% PETRONAS Fastnet

Shanagarry Offshore Ireland 881 km2 82.35% 82.35% Adriatic Oil, Carob, Petro Celtex Fastnet

Molly Malone Offshore Ireland 647 km2 100% 100% n/a Fastnet

Block 49/13 Offshore Ireland 272 km2 85% 85% Carob ltd, Petro Celtex Fastnet

Total Area 25,192 km2

771

283

95

0 100 200 300 400 500 600 700 800

Frontier

Standard

Mature

Strategic focus on high-volume, high- value, frontier petroleum systems

Average Commercial Discovery Size in MMBoe 2010-2012 by Type

of Hydrocarbon Province

Note: Information from September 2012 Bernstein Research Report

APPENDIX


Outset Development Plan and Target Production Profiles

P10 Production Profile (1,513 BCF GIIP)

MOROCCO: TENDRARA OPTION

A

• To support a field plateau for Power Generation additional production wells would be required (A)


Fastnet farm-out agreement with SK Innovation

About SK

• SK Innovation is part of SK Group, the third largest

conglomerate in South Korea behind Samsung and

Hyundai with 56,000 employees

• USD $130 billion in Annual Revenue

(Energy/Chemicals Division comprises 56%)

• SK is Korea’s number one and Asia’s fourth largest

oil refining company with 1.1 million boepd capacity

• As of Q1 14, SK’s E&P portfolio consists of 19 blocks

in 13 countries

– 5 production blocks, 14 exploration blocks, 4 LNG

projects across countries such as Peru, Columbia,

Kazakhstan, Libya, Australia, Oman Yemen,

Vietnam, Cote d’Ivoire, Madagascar

– Daily production of 70,000 boepd

– 619mm BOE Proven Reserves

MOROCCO: FOUM ASSAKA

Deal Terms

• SK acquired a 12.5% Gross interest (9.375% Net) in Foum

Assaka licence in December 2013

• Up to two well carry comprised of a carry in the first

exploration well on the Eagle-1 Prospect and first appraisal

well (capped at USD $100 million per well) or at SK

Innovations’ discretion a carry in a second exploration well

(capped at gross USD $100 million)

• Reimbursement of past costs of USD $3.2 million and a

further payment of 25% of Fastnet’s back costs relating to

the period from 1 October to 1 January 2014

• Fastnet now retains a 12.5% gross interest (9.375% - net)


Foum Assaka Partners and Funding

• SK – expanding its exploration portfolio with offshore Morocco seen as a core area

• BP – have committed heavily to the North Agadir Basin and the Foum Assaka prospect portfolio. Gulf of Mexico experience in exploring for prospective traps in areas of salt tectonics and BP has a large acreage position on the Nova Scotia conjugate margin which is a mirror-image of Offshore Morocco

• Highly successful exploration track record in last 12 months

• Fastnet is fully funded for its offshore and onshore 2014 drilling programme in Morocco

• The SK farmout was completed on 22nd April 2014 with the transfer of Past Costs to Fastnet as previously announced

• Final FA-1 Well Cost is significantly under the USD $140 mm used by Fastnet for its prudent Working Capital Forecast Estimate

• Taking into account the USD $127 mm Final FA-1 Well Cost, Fastnet’s cash balance end May is USD $22 mm

• Fastnet anticipates bringing in an additional partner to the Tendrara-Lakbir licence to participate in the 2014 drilling programme and to advance the potential for early monetisation. Expected cash balance at year end 2014 is c. USD $10m following completion of both the onshore and offshore wells.

MOROCCO: FOUM ASSAKA


FA-1 Eagle Prospect – Positives Versus FD-1 (Cairn Foum Draa Well)

• Oil shows confirmed in FA-1 sidewall cores (FD-1 confirmed wet gases on mud logs only)

• “Feather-edge” fine distal sands in mud-dominated sequence confirmed in FA-1 (FD-1 encountered no sands)

• Sand and claystone laminated sequence not of reservoir quality

• FA-1 only tagged very top of the potential prospective sand package (FD-1 drilled to Top Jurassic without sand)

• FA-1 in mini-basin setting beyond shelf slope – good for sand entrapment (FD-1 drilled on slope in sediment by-pass zone)

• FA-1 proved hydrocarbon charge and seal (FD-1 proved hydrocarbon charge and seal)

• Flank play against salt diapir (FD-1 flank play against salt diapir)

MOROCCO; FOUM ASSAKA

BP AND CHEVRON PLAY CONCEPTS BASED ON NOVA SCOTIA CONJUGATE MARGIN ANALOGUE

FA-1 ILLUSTRATES THE POTENTIAL TO TEST THIS ANALOGUE IN A DOWNDIP APPRAISAL WELL


Ireland: Largest Ever 3D Seismic Survey in the Celtic Sea of 1,910 km2

Mizzen 3D Seismic – 1,400 km2

Deep Kinsale 3D Seismic – 510 km2

CGG Vantage

Mizzen 3D Area - Full Fold (3 km sail in)

Mizzen 3D Area

Total Option Area

Deep Kinsale Seismic & Undershoot

39

First Ever Structure Map for Middle Wealden Sands – 1,500+ BOPD in

Legacy Well 48/28-1


Crest Migrates eastwards

with increasing depth and

reduces in size

140km²

• Oil Cut Mud Recovered in early 1970’s in 48/20-1a before 48/28-1 drilled – Never Appraised since/Huge Structure

40

First Ever Structure Map for Upper Purbeck Sands


• Oil logged 48/25-1 in early 1970s – Never Appraised Updip/very large structures

~87km²

41

First-ever 3D Seismic Defines Multiple Structural Traps at Top Aptian Horizon Updip

From Oil Shows in 56/12-1

IRELAND: MIZZEN

41

63.3km²

45km²

26.3km²

19.6km²

15km²

15.7km²

6km²

6.3km²

7.8km²

7km²

Migration Routes Up-Dip

C.I. O.01s (Approx. 20m)

TWT

56/12-1 (1975)


First-ever 3D Seismic Example of an Amplitude Driven Stratigraphic Lead

Resulting in Huge Industry Interest

IRELAND: MIZZEN

15 Hz spectral decomposition in 125ms window below Top Aptian showing wedging of potentially gas charged reservoirs on to high..

Gas??

Sand Pinchout

GAS??

Theory indicates higher frequencies are preferentially removed by gas sands leaving an elevated low frequency response

56/12-1 (1975)


Gross STOIIP and GIIP and Risking based on CPRs as of 31.12.2013 (before

interpretation of new Celtic Sea 3D seismic)

Best Estimate High Case CoS Oil or Gas Case

Foum Assaka

Shell Legacy Prospects Only 4.930 BBO – 11% OIL

Tendrara Lakbir

TE-5 Lakbir Structure 310.5 BCF 0.892 TCF 22% GAS

Other Prospects and Leads 1, 345.8 BCF 4.284 TCF 11 - 18% GAS

Shanagarry

Upper Wealden 135.9 BCF – 10% GAS

Lower Wealden 796.6 MMBO – 14% OIL

Purbeck 501.6 MMBO – 12% OIL

Kimmeridgian-Portlandian 885.7 BCF – 5% GAS

Upper/Middle Jurassic 321.1 BCF – 5% GAS

Mizzen Basin

Shallow Lower Cretaceous 2.075 TCF 4.724 TCF 12% GAS

Cretaceous Prospect 1.799 BBO 3.899 BBO 4% OIL

Deep Triassic Prospect 3.108 TCF 9.356 TCF 5% GAS

Molly Malone Basin

Triassic Prospect - North 6.677 BBO – 9% OIL

Triassic Prospect - South 5.833 BBO – 5% OIL

Deep Kinsale

Wealden Oil 1651.4 MMBO 3.306 BBO 15% OIL

Purbeck 713.6 MMBO 1.556 BBO 15% OIL

Total Oil 22.911 BBO OIL

Total Gas 8.182 TCF GAS

FASTNET PORTFOLIO

Contingent Resources


Analyst Coverage

APPENDIX

Name Company

Sam Wahab Cantor Fitzgerald

Michael Alsford Citi

Job Langbroek Davy

Ian McLelland Edison Research

Tao Ly GMP Securities

Gerry Hennigan Goodbody

Matthew Lambourne Jefferies

Richard Savage Mirabaud

Stuart Amor RFC Ambrian

Craig Howie Shore Capital

Oswald Clint Sanford Bernstein

Fastnet Oil & Gas Plc Ladenburg Thalmann Corporate ... · 5 Introduction Fastnet is an oil & gas Company primarily focused on exploration in frontier regions. Strategy • Seek high

Documents