Corporate Presentation Africa Upstream Conference February 2014 - - PowerPoint PPT Presentation

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Corporate Presentation Africa Upstream Conference February 2014 - - PowerPoint PPT Presentation

Fastnet Oil & Gas Plc Fastnet Oil & Gas Plc Ladenburg Thalmann Corporate Presentation Africa Upstream Conference February 2014 March 2014 www.fastnetoilandgas.com www.fastnetoilandgas.com Disclaimer This document is confidential


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www.fastnetoilandgas.com

Fastnet Oil & Gas Plc Ladenburg Thalmann Africa Upstream Conference February 2014

Fastnet Oil & Gas Plc Corporate Presentation

March 2014

www.fastnetoilandgas.com

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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

  • ther 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.

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Company Overview Moroccan Assets Irish Assets Outlook Company Overview Moroccan Assets Irish Assets Outlook

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www.fastnetoilandgas.com 4

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

  • pportunities
  • 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

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Investment Case

  • Early entry with excellent fiscal terms
  • Significant acreage position (25,192km²) balancing near term high

impact exploration and lower risk near term exploration opportunities

  • Fully financed for current 2014 work programme
  • Carried on near term offshore exploration in Foum Assaka with high

calibre partners

  • 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 offshore and onshore Morocco

OVERVIEW

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Experienced Board & Senior Management

Cathal Friel Executive Chairman Paul Griffiths Managing Director Carol Law Executive Director Michael Nolan Non-Exec Director

  • Former Founding Director
  • f Merrion Capital
  • Managing Director and one
  • f the founders in 2007 of

Raglan Capital and with

  • ver 25 years of managerial,

entrepreneurial and corporate finance experience

  • One of the founding

directors of Merrion Capital, where he was part of the small team that built the business and then successfully sold it for close to €100m in 2006.

  • Former CEO, Island Oil &

Gas Plc

  • 35 years of industry

experience, early stage oil & gas prospector, Graduate

  • f Royal School of Mines
  • 100% success rate offshore

Ireland with Island Oil & Gas: 4 wells drilled, two commercial gas fields

  • 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)

  • 30 years of experience in oil and

gas exploration

  • Current Director Cove

Energy Ltd

  • Former Founder and Group

Finance Director of Cove Energy PLC

  • Over 18 years of

experience in the resource exploration sector

THE TEAM

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Company Overview Moroccan Assets Irish Assets Outlook Company Overview Moroccan Assets Irish Assets Outlook

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An emerging world-class hydrocarbon basin

  • Attractive fiscal terms – the value of producing

1bbl of oil in Morocco is equivalent to the value

  • f 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 and Genel

  • Politically stable with a constitutional monarchy

and a democratically elected Government

  • Multiple wells planned by industry over the next

12 months: 7 offshore and 6 onshore wells already scheduled for drilling in Morocco in 2013/2014

  • Fastnet management team an early mover in

Morocco beginning 2006

Near Term Drilling Activity

Other Parties Active: Chevron Chariot Total

Fastnet “first mover” strategy prelude to industry recognising Morocco as a key frontier exploration area (yellow)

MORROCO

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Fastnet’s Managing Director Paul Griffiths has been active in Morocco since 2006 with his previous company Island Oil & Gas plc.

  • 2,577km2 of 3D

seismic acquired

  • n Foum Assaka
  • Kosmos set up

drilling base at Agadir

  • Production

commences in Ghana on Jubilee Discovery

  • Shell relinquishes Cap

Draa and Rimella Licences

  • Island Oil & Gas/Paul

Griffiths enters Moroccan

  • nshore with Zag

Licence award

  • Onshore Tarfaya

Licence awarded to Island Oil & Gas

  • Kosmos’ Jubilee

Discovery in Ghana

  • Island Oil & Gas enters

Moroccan offshore with Sidi Moussa & Foum Draa Licence awards

  • Kosmos enters Agadir Basin

with Pathfinder on Foum Assaka

  • Kosmos lists on NYSE ($7bn)

and expands exploration acreage in West Africa

  • Farm-out agreed with Kosmos
  • n Foum Assaka for additional

equity in Q3 2011

9

  • Kosmos Energy

announced that it has entered into a farm-out agreement with BP plc., to earn a 26.325% stake in the Foum Assaka permit

  • Fastnet farm-out

agreement with SK Innovation Ltd for half of Fastnet’s interest in Foum Assaka, Offshore Morocco

www.fastnetoilandgas.com MOROCCO

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Tendrara Lakbir Licence

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:
  • 488 sq. km. 3D seismic survey (2004),
  • 4,110 km. 2D seismic acquired from 1974 to 1986 – 4 x 6

km grid,

  • 950 km. 2D seismic reprocessed in 2002

Equity & Partners

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

MORROCO

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Tendrara Lakbir – TE-5 Gas Structure

MORROCO

AREA OF CLOSURE 16,600 ACRES

TE-6 PROVISIONAL LOCATION

LAKBIR: TE-6 PROVISIONAL WELL LOCATION

Te-5 Structure Meskala Gas Field ONHYM

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Tendrara Independent Resource Estimates: November 2013

  • New study by specialist Houston-based NuTech petrophysical team 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 by John Tingas PhD, MSc, Independent Petroleum Engineer, 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 by SLR Consulting, 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:

TE5-Lakbir Structure: Gross and Net Contingent Resources

LOW BEST HIGH ESTIMATE 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

MORROCO

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Forward Works Programme

  • Reprocess existing 3D seismic data to select drilling location in reservoir “sweet

spot” defined by strong seismic amplitudes

  • Re-evaluate historical drilling data and extended well test data
  • Objective is to engineer a well to potentially deliver 4 – 7 mm cfgpd on testing –

TE-5 TAGI reservoir parameters are comparable to those for the producing Meskala Field in Morocco

  • Drill and test appraisal well on TE-5 Structure– a suitable land rig has been

identified

  • 45 day well drilled to 2,600 meters maximum depth
  • Achieving the predicted well deliverability will de-risk a gas development for the

substantial amounts of gas already encountered in the TE-5 Structure and the exploration upside, allowing Fastnet to commission an updated independent CPR report

MORROCO

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Gas to Power Plans

  • National natural gas production

remains insignificant (60 million m3 (1.76 BCF) in 2009)

  • 89% of gas requirement is imported
  • Strong domestic gas market (one of

Africa’s largest consumers)

  • Demand for energy has increased

by 54% in last ten years

  • Gas to Power is key Government

strategic target as is security of supply

  • Minimal risk of stranded gas

Oil Refineries

LNG Terminal Initial Capacity 5 Billions M3 ( 176.55 BCF) > 5 years before operational (at very early planning stage) Capacity 12.5 Billions M3/year (441.37 BCF/year) 14% of transport capacity entitled to Morocco (currently unutilised)

Moroccan Energy and Electricity Demand Growth 2006 – 2030 (MEMW&E)

MORROCO

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Foum Assaka

  • Primary target: mid-Cretaceous deepwater

turbidite fan

  • The FA-1 well, targeting the Eagle prospect,

spud in March 2014, drilling expected to take 3 months

  • Eagle prospect is estimated by the operator,

Kosmos, to contain 360 mmboe of Pmean resources

  • Carried by SK through Initial Period Work

Programme (based on gross budget cap of $16.2 million)

  • BP brings a wealth of experience in

successfully testing salt structures (e.g. Gulf of Mexico)

  • Additional play types: Tertiary and Basal

Cretaceous deep water channels and fan types

  • Multiple prospects and leads with diverse

geological objectives

  • Primary prospects CoS 15 – 20%

Eagle Complex

MORROCO

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Foum Assaka – FA-1 Well Eagle Prospect

  • FA-1 Exploration Well is currently estimated to spud

during March with designated “Tight Hole” status

  • It will be drilled to a depth of approximately 4,000

meters and could take up between 47 to 66 days to complete depending on drilling efficiencies

MORROCO

Images Sourced from Kosmos Technical Update

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Foum Assaka Block – FA-1 Well

  • The primary targets are four stacked Albian sand packages representing deepwater fan systems similar to the

Jubilee Field reservoir in Ghana – Pmean Resources quoted by Kosmos for the upper sand only are 360mm BO recoverable

  • The FA-1 well will also potentially encounter the “LTS-1 Sand feather edge” on the Shell legacy A1-C Canyon

Tertiary Prospect, for which Shell’s estimate of potential recoverable resources was 220 MMBO, which is located immediately to the eat of the FA-1 well location

  • The FA-1 well will also evaluate the same section encountered in the Cairn FD-1 well to the SW in Foum Draa

in order to determine the potential for a downdip stratigraphic pinch-out play at the base of the Cretaceous to the eat of FA-1

  • The well will not be tested as is normal industry practice for wells drilled in deep water
  • Depending on the well results the Kosmos-operated group will either drill an appraisal well to test and flow the

Primary Albian Sand Objective, for which Fastnet is carried by SK up to a gross cap of USD 100mm, or drill a second exploration well on one of the 3 different geological plays being evaluated by the FA-1 well, for which Fastnet is also carried by SK up to a cap of USD 100 mm, at their discretion as currently there is no licence commitment to drill a further well after FA-1

MORROCO

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Maersk Discoverer

MORROCO

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Maersk Discoverer – Passing the Rock of Gibraltar 9th March 2014

MORROCO

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Foum Assaka Block – FA-1 Well

  • There are eight additional prospects similar to the FA-

1 Eagle Prospect with multiple potential objectives in this part of the licence together with multiple Tertiary and Base Cretaceous Prospects and Leads that will be re-ranked following the results of the FA-1 well

  • This will be 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

MORROCO

Images Sourced from Kosmos Technical Update

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Farmin Partners and Funding

  • 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

  • Highly successful exploration track record in last 12 months
  • SK – developing an exploration portfolio with offshore Morocco as a core area
  • Fastnet is funded for the well up to a cap of USD 100 MM
  • All regulatory approvals for the farmout are being progressed according to the anticipated schedule and the

regulatory authorities are working to deliver the approvals during March

MORROCO

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Fastnet farm-out agreement with SK Innovation

  • SK Innovation is an affiliate of SK Group the third largest

conglomerate in South Korea with offices in 113 countries

  • 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 US$100 million per well) or at SK Innovations’ discretion a carry in a second exploration well (capped at gross US$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 to retain a 12.5% gross interest (9.375% - net)

MORROCO

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Company Overview Moroccan Assets Irish Assets Outlook Company Overview Moroccan Assets Irish Assets Outlook

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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

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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

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Deep Kinsale

  • 3,514 boepd from 24 foot basal

sand in Barryroe

  • Up to 160km2 structure
  • NuTech (Houston based) log

analysis confirms oil in 48/25

  • Running room and trendology for

majors interested in the single asset of Barryroe

  • Enhances potential to prospective

drilling partners

  • Strengthens portfolio of material

prospects

Kinsale Gas Field Structure

IRELAND

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BC Base Chalk MWS Middle Wealden Sands DT Deep Target (Upper Purbeck?) MP Middle Purbeck Unconformity LP Middle or Lower Purbeck?

SE NW

ALPHA PLATFORM

BC MWS DT MP LP

Prograding Delta “Sweet Spot” Post-unconformity Fill

IRELAND

Deep Kinsale: 3D Cross Line 1976

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www.fastnetoilandgas.com 28 BLUE P90 CLOSURE 8,757 acres Four-way Dip Closure PINK P50 CLOSURE 19,934 acres Four-way Dip Closure GREEN P10 CLOSURE 3,5930 acres Minor fault seal element against upthrown Purbeck Shale

C.I. = 10 msecs

48/24-4 oil shows in Base Wealden Sands HANGING WALL 49/17-1 oil shows in Base Wealden and Upper SYN RIFT FOOTWALL 48/25-1 NU TECH Petrophysics 270 ft. net pay in Base Wealden 262 feet net pay in Upper Purbeck HANGING WALL

NO OTHER WELLS PENETRATED BASE WEALDEN/UPPER JURASSIC

Deep Kinsale: Untested Deep Target TWT Map (Yellow Seismic Events)

IRELAND

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www.fastnetoilandgas.com 29 Interpretation of Fastnet’s newly acquired high resolution 3D seismic Data in the Kinsale and Mizzen areas is expected to resolve many issues. It should also indicate the timing of inversion events in these parts of the North Celtic Sea and shed some light on inversion timings.

Mizzen Inversion Events (New 3D Seismic – early in Testing Sequence)

IRELAND

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Mizzen Prospect 1: Structural Nose with Lower Wealden & Purbeck Reservoir pinch-outs and subcrop at Base Barremian Shale & Chalk unconformities Mizzen Lead 2: Structural Lead/Alluvial Fan with Lower Wealden & Purbeck Sand Overlain by Barremian Shale Mizzen Lead 3: Structural Nose with Lower Wealden & Purbeck Sand Overlain by Barremian Shale

Mizzen Prospect 1 = 114 sq. km. Mizzen Lead 2 = 32 sq. km. Mizzen Lead 3 = 127 sq. km.

1 2 3

C.I. = 20 msecs

Top Lower Wealden Sands Subcrops Barremian Shale Top Lower Wealden Sands Subcrops Aptian Unconformity/Base Chalk?

IRELAND

Mizzen Basin: Top Lower Wealden Sands TWT – Legacy 2D Seismic

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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
  • il 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 for 2015/2016 - 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 2016
  • 3. Fastnet is the instigator on behalf of the Celtic Sea operators and supported by the PAD in organising the first ever Celtic Sea workshop for

leading international oil and gas companies to be held in Dublin on 30th April 2014

IRELAND

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Company Overview Moroccan Assets Irish Assets Outlook

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Fastnet Oil & Gas: Forward Work Programme

OUTLOOK

Prospect Activity 2013 2014 Q2 Q3 Q4 Q1 Q2 Q3 Q4

OFFSHORE MOROCCO (Foum Assaka)

CPR for New Prospect Inventory Purchase of Long Lead Drilling Inventory Approved

Drilling Preparation EIS Study

Farmout Activity Farmout Completion Drill First Well

ONSHORE MOROCCO (Tendrara Lakbir)

Portfolio Opportunities Completed

CPR for Prospect Inventory Drilling Preparation EIS Study Rig Sourced

Drill First Well

OFFSHORE IRELAND (Celtic Sea)

CPR Shanagarry, Deep Kinsale & 49/13

3D Seismic Acquired 3D Processing and Interpretation Farmout Process

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Summary – Near-term High Impact Drilling Programme with “Running-Room”

  • High Impact H1 2014 Drilling Programme in Fastnet’s acreage onshore and
  • ffshore Morocco
  • Multi-well drilling programme in 2013/2014 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 is 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

OUTLOOK

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Appendices

Fastnet Oil & Gas

Appendices

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Company Information

  • Listed on AIM and ESM
  • Addition of Foum Assaka asset offshore Morocco

drove initial shareholder value in emerging industry “hot spot”

  • Addition of Tendrara Lakbir Exclusive Farmin Option

into proven gas discovery onshore Morocco yet to be fully factored in to the share price

  • Share price driver over next 12 months will be an

active drilling programme offshore and onshore Morocco

  • Prudently managed cash resources to satisfy all

current work programme commitments whilst allowing for partial monetisation of the portfolio through ongoing farm down discussions for carries in drilling and past costs

KEY INFORMATION AIM FAST ESM FOI TOTAL ORDINARY SHARES IN ISSUE 345,369,071

APPENDIX

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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 25% 18.75% Kosmos, BP (pending), SK (pending) 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 95 100 200 300 400 500 600 700 800 Frontier Standard Mature

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

Average Commercial Discovery Size in MMBoe 2010-2012 by Type

  • f Hydrocarbon Province

Note: Information from September 2012 Bernstein Research Report

APPENDIX

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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 APPENDIX

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Fastnet Oil and Gas: “First Pass” Indicative Gross STOIIP and GIIP and Risking

Best Estimate High Case CoS Oil or Gas Case Foum Assaka Shell Legacy Prospects Only 4.930 BBO – 11% OIL 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 Middle Wealden 856.3 MMBO 1.685 BBO 13% OIL Lower Wealden 530.1 MMBO 1.089 BBO 15% OIL Basal Wealden Oil 265.0 MMBO 0.532 BBO 17% OIL Purbeck 713.6 MMBO 1.556 BBO 15% OIL Total Oil 22.911 BBO OIL Total Gas 6.526 TCF GAS

CPR for 49/13 is pending

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