Fastnet Oil & Gas (FAST) has bolstered its balance sheet as it moves towards a potentially high impact drilling campaign in Morocco. The company has raised £10m through a placing of 71.4m shares, which will be used to fund its initial participation in the Foum Assaka block in offshore Morocco.
IC TIP:
Buy
at
14.5p
The funds will be used prior to the completion of a formal farm-out agreement, involving the sale of a portion of its 18.75 per cent stake in return for a 'carry' on its well costs. A farm-out deal is anticipated early next year, when the residual funds will be redirected to the 2014 drill campaign at the onshore Tendrara-Lakbir licence area, in which Fastnet holds a gross interest of 50 per cent.
