Fastnet Says Moroccan Onshore Structure Holds 311 BCF

Junior explorer Fastnet Oil and Gas reported Tuesday that Morocco's onshore Tendrara-Lakbir structure, in which the firm has a 37-percent net interest, likely holds an estimated 311 billion cubic feet of contingent gas resources, according to an independent assessment.

The independent resource assessment, based on desk-top studies and a review of historical estimates by SLR Consulting, ranged from a low estimate of 30.1 bcf to a high estimate of 891.9 bcf, with the best estimate coming in at 310.5 bcf, of which 116.4 bcf is thought to be recoverable.

Commenting on these new estimates Fastnet Managing Director Paul Griffiths said:

"We are pleased that our decision to undertake a series of comprehensive desk-top studies by key specialists with experience and proven track records has been justified by the independent verification of the potential Contingent Resources for the TE-5 – Lakbir Structure.

"This has provided us with invaluable insight to understand and address the important historical issues related to drilling and completion operations, reservoir quality, reservoir engineering, well performance and the potential for structural compartmentalization that may have held back the exploitation of the TAGI [Trias Argilo-Greseux Inferieur] gas reservoir in the past."

Griffiths added that an important step in validating the resource potential will be an appraisal well in 2014. This well is designed to optimize the flow potential from the TAGI reservoir by minimizing formation damage as well as collecting high-quality flow rate and pressure data with which to validate and re-calibrate current reservoir engineering studies.

"We are excited about the drilling of this project as we continue to deliver on our 'early mover' strategy. We have… successfully identified and quickly secured dormant high-impact opportunities with latent potential to deliver at the higher end of conventional expectations," Griffiths added.

"Our seasoned technical expertise allowed us to de-risk the asset by addressing key historical issues paving the way to a fast-moving drilling program based on a sound assessment of geological and well operations risks."

Analysts at Dublin-based Davy Stockbrokers commented:

"The report supports the group's belief that the discovery forms an important second element of its Moroccan portfolio. If the well expected in 2014 confirms the presence of gas and commercial flow rates, rapid monetization should be possible."

Fastnet also holds an 18.7-percent net interest in the Foum Assaka license area, offshore Morocco.


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