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Fastnet Oil & Gas plc

Annual Report 2013

www.fastnetoilandgas.com

Fastnet Oil & Gas plc Annual Report 2013

Fastnet Oil & Gas plc (AIM: FAST, ESM: FOI) is an independent oil and gas exploration
company focused on identifying early stage exploration and appraisal opportunities
in underexplored and frontier territories. The Company has a portfolio of high impact
exploration and appraisal assets offshore Ireland and in Morocco.

Contents
Overview
IFC Corporate Statement
01 Highlights
02 Our Strategy
03 Where We Operate
Business Review
04 Chairmans Statement
05 Managing Directors Review
07 Operations Review
Corporate Governance
16 Board of Directors
17 Directors Report

Financial Statements
24 Independent Auditors Report
25 Consolidated Statement of Comprehensive Income
26 Consolidated Statement of Financial Position
27 Consolidated Statement of Cash Flows
28 Consolidated Statement of Changes in Equity
29 Company Statement of Financial Position
30 Company Statement of Cash Flows
31 Company Statement of Changes in Equity
32 Notes to the Financial Statements
52 Company Information

01

Operational Highlights

Fully funded to meet all current licensing phase


commitments and obligations, and subject to successful
farm-outs, a non-obligatory drilling programme onshore
Morocco and an exploration well in Foum Assaka in 2014
Successful entry into offshore Morocco (Foum Assaka
Licence) and onshore Morocco (Tendrara Lakbir)
Established one of the largest, exploration-focused,
acreage positions in the Celtic Sea of any independent
Over 25,000 km2 under licence in two emerging
exploration hot spots
2,577 km2 3D seismic survey in Foum Assaka completed
and processed, de-risking multiple prospects for drilling
in 2014
1,910 km2 of 3D seismic acquired in the Celtic Sea, the
largest 3D seismic survey ever in the area and designed
toaccelerate potential targets for early drilling

Financial Highlights

Strong balance sheet with 20.7 million cash reserves


at31 March 2013
Oversubscribed share placings which raised 10.0million
and 15.0 million in June and November 2012, respectively
Net loss for the year of 1.4 million inclusive of the
acquisition costs of Pathfinder Hydrocarbon Ventures
Limited and reverse takeover of Sterling Green Group plc
Tight cost control measures in place to ensure efficiency
of capital is maintained

Corporate Activity

Successful acquisition of Terra Energy Limited and


admission to trading on AIM and ESM
Acquisition of Pathfinder Hydrocarbon Ventures Limited
with the accrued benefit of a carry through seismic
acquisition and processing on the Foum Assaka Licence,
capped at US$16.2 million

02

Fastnet Oil & Gas plc Annual Report 2013

Our Strategy
To build a portfolio of oil and gas exploration assets offshore Ireland and in Morocco
where opportunities exist for early drilling and monetisation, under attractive fiscal regimes.

IRELAND

MOROCCO

The portfolio has been established as follows:


Morocco (Foum Assaka and Tendrara Lakbir)
Ireland (Molly Malone, Mizzen, Mizzen East, Shanagarry, Block 49/13 and Deep Kinsale)

Focused on emerging and underexplored basins with


proven petroleum systems and high impact exploration
prospects and leads
First mover strategy focused on identifying early stage
exploration and appraisal opportunities in underexplored
and frontier territories with attractive fiscal regimes
Early monetisation strategy focused on de-risking assets
to deliver potential upside through near-term drilling
success creating opportunities for trade sales
Balanced asset and risk portfolio with high rewards
andsurrounded by near-term drilling activity
Experienced management team with track record of
delivering results and creating medium term shareholder
value through exploration success
Well-established joint venture partnerships with
successful multi-national explorers

03

Where We Operate
Morocco
An emerging potentially world-class hydrocarbon basin
Significant resource potential offshore Morocco in the Foum
Assaka licence area with total net attributable best estimate
resources of 184.9 MMbbl for Shell legacy prospects
Offshore drilling expected H1-2014 to target new prospects
developed by Kosmos Energy focused on Jubilee-type deep
water turbidite fans (successfully drilled and produced in Ghana)
Tendrara Lakbir, onshore Morocco is the largest licence
(14,548 km2) in Morocco over the proven Triassic Tagi gas play
(producing in the Meskala field in Morocco and in Algeria)
Onshore drilling anticipated to commence in 2014

Ireland
Focused on the Celtic Sea Basin, which hosts Irelands
largest producing gas field and potentially its largest
oilfield (Barryroe)
One of the largest acreage holders in the Celtic Sea, offshore
Ireland with over 3,000 km2 under licence
1,910 km2 3D seismic acquisition completed with multi-well
drilling programme planned for 2015 subject to a successful
farm-out process which may be accelerated during 2013
following the preliminary results of the 3D seismic acquisition
Significant unrisked gross in-place resources rivalling the
Atlantic Margin in scale but easier to develop given shallower
water depths; presence of infrastructure; and a long history of
gas production in southeast Ireland from the Kinsale gas field
Data room supporting on-going discussions with several
international oil and gas companies who are potential
farmincandidates

04

Fastnet Oil & Gas plc Annual Report 2013

Chairmans Statement
It has been an exciting and productive year for Fastnet Oil & Gas plc
(Fastnet or the Company). Following admission to AIM and ESM
in June 2012, the Company has moved quickly to establish a portfolio
of material interests in potentially high impact exploration prospects in
both Morocco and offshore Ireland. Fastnet now has over 25,000 km2
under licence in two emerging industry hot spots. The establishment
of this balanced portfolio has driven initial shareholder value creation and
the Company expects to deliver further growth by fast-tracking drilling
programmes and farming down of its high quality exploration assets as
the competition for acreage accelerates following an initial wave of licence
awards over the most prospective basins in which Fastnet operates.
IPO and Reverse Takeover
Fastnet was established following the reverse takeover by Terra Energy
Limited (Terra) of AIM listed company, Sterling Green Group plc
(Sterling Green) in June 2012. Sterling Green was subsequently
renamed Fastnet Oil & Gas plc and was admitted to trading on AIM
and ESM in June 2012.
Asset Portfolio Development
Following the acquisition of Pathfinder Hydrocarbon Ventures Limited
(Pathfinder) in July 2012, Fastnet holds an 18.75% economic (25%
paying) interest in the Foum Assaka Petroleum Agreement offshore
Morocco. In addition to adding a licence with significant resource
potential, Paul Griffiths, the largest shareholder of Pathfinder joined
Fastnet, initially, in the role of Executive Vice President of Exploration
and, subsequently, Managing Director following the completion of
the deal. Subsequent to the Companys year-end, Fastnet expanded
on its Moroccan presence by agreeing to farm-in to the Tendrara
Lakbir Petroleum Agreement onshore Morocco, within which
discovered gas, if successfully appraised, has the potential to create an
opportunity to establish a pivotal position in the emerging Moroccan
gas market adjacent to Western Europe thereby attracting the
attention of the regional gas players.
The Company is focused on two geographical areas such that in
addition to its Moroccan interests the Company has moved to secure
significant acreage offshore Ireland in the Celtic Sea. The Company holds
one of the largest acreage positions under licence in the Celtic Sea with
an interest or option in place on six different licensing authorisations.
Following the year-end, Fastnet completed a 3D seismic programme
comprising 1,910 km2 and has an on-going farm-out programme in
progress in relation to its Irish and offshore Morocco interests.
Financial Review
Fastnet is an early stage independent oil and gas exploration company
with no revenue generated to date. The Group is reporting a loss
for the year to 31 March 2013 of 1,394,000 (three months to 31
March 2012: 70,000). The increased loss reflects the transition of
the Company from a private company focused on unconventional oil
and gas resources to a publicly listed oil and gas exploration company
focused on conventional resources in Morocco and offshore Ireland.
The loss for the period comprises general and administrative costs of

970,000, a share based payment charge of 258,000, reverse asset


and other acquisition costs of 1,087,000 (this includes an accounting
adjustment for a deemed cost of the business combination of Terra
and Sterling Green of 809,000) and interest, other income and
foreign exchange gains of 921,000.
In June 2012, as part of a share placing to coincide with the admission
of the Company to AIM and ESM, Fastnet raised 10,000,000 (before
expenses) through a placing of 90,909,091 new ordinary shares in the
capital of the Company (Ordinary Shares) at 11 pence per share. In
November 2012, the Company raised a further 14,960,000 (before
expenses) through a placing of 68,000,000 new Ordinary Shares with
new and existing investors at 22 pence per share, with both placings
oversubscribed. As at 31 March 2013, the Group had cash balances
of 20,736,000. Subject to the completion of the farm-out processes
in relation to both its Irish Sea and Moroccan assets which the Group
has underway, the Group is well funded for its current exploration
programme for the medium term.
Board of Directors and Management
In October and November 2012, the Board was substantially
strengthened with the appointments of Paul Griffiths as Managing
Director and Carol Law as Executive Director. The Board now consists of
Cathal Friel, Paul Griffiths and Carol Law in executive roles with Michael
Nolan, Michael Edelson and Stephen Staley as non-executive Directors.
Fastnet has in place an experienced management team with a track
record of delivering exploration success and creating shareholder value.
Outlook
The Boards strategy is to ensure that the Company retains a material
interest in its portfolio of prospects that are being matured for drilling.
This is the critical step to implementing Fastnets stated strategy of
creating shareholder value through exposure to high impact exploration
and appraisal opportunities. The Company is well placed, subject to
successful farm-out agreements being concluded in relation to certain
of its assets, to continue with the minimum work commitments in
relation to its Moroccan and Irish licences and is de-risking its asset
portfolio to a stage where major partners can be brought in for
sustained value creating exploration work and drilling programmes in
the near term future to support 2014 and 2015 drilling programmes.
The Board expects the key driver for shareholder value in the near
term will be the execution of the Moroccan drilling programme and
ensuring that the Company has a material interest in the programme
to deliver maximum benefit for shareholders from any future
exploration success. With this in mind, the Board looks to the future
confident that the Company remains on track to execute its stated
business development strategy.

Cathal Friel
Executive Chairman
16 August 2013

05

Managing Directors Review


During the period under review and since, Fastnet has continued
to execute its strategy of identifying early stage exploration and
appraisal opportunities in underexplored and frontier territories.
Since admission to AIM in June 2012, Fastnet has put in place
an exciting portfolio of exploration assets offshore and onshore
Morocco and offshore Ireland, comprising:
Foum Assaka Licence (offshore Morocco)

As announced in May 2013, Fastnet has agreed to farm-in to,


subject to regulatory approvals, eight highly prospective exploration
and appraisal blocks comprising the Tendrara Lakbir Petroleum
Agreement onshore Morocco, covering 14,548 km2. This represents
the largest licence in Morocco over the proven Triassic Tagi gas
play. The Company anticipates the drilling of an appraisal/predevelopment well in 2014, following which the Companys gross
interest in the Licence Area will be 50% (37.5% net interest).

Farm-in option for Tendrara Lakbir Licence (onshore Morocco)


Shanagarry, Mizzen, East Mizzen, Block 49/13 and Molly
Malone Licences (offshore Ireland)
Farm-in option for Deep Kinsale Prospect (offshore Ireland)
The Company is focused on de-risking these assets to deliver
an early drilling programme to advance the opportunity for
shareholder monetisation.
Acquisition of Pathfinder and farm-in option to
TendraraLakbir Licence
The Directors are excited about Fastnets entry into offshore
Morocco, which is an emerging exploration frontier area on the
West African Margin for the oil and gas industry with an attractive
fiscal regime. Recent industry farm-in activity helps validate the
perceived significant oil and gas potential of the region.
Fastnet was carried through the Foum Assaka Initial Exploration
Period work programme based on a gross budget cap of
US$16.2m. 2,577 km2 of 3D seismic acquisition was completed
inApril 2012, which exceeded the minimum work commitment
of500 km2. 15 Cretaceous deepwater fan prospects have been
newly identified by the licence Operator, Kosmos Energy and
the Directors anticipate that, subject to all necessary regulatory
consents and the timing of rig availability, drilling of the first
exploration well in Foum Assaka should commence in H1 2014.
The Company has also commenced a farm-out process in relation
to its 18.75% net interest. Whilst this process is in its early stages,
expressions of interest have already been received from several
multi-national and national oil corporations and preferred terms
are expected to include the reimbursement of past expenditures,
including 3D seismic costs, and a carry for future drilling activities.

Operating offshore Ireland


Fastnet has now established a material position in the Celtic Sea,
where there has been renewed exploration interest following the
recently successful Barryroe appraisal well in 2012. In June 2012,
Fastnet was awarded two licensing options, Mizzen (Licensing
Option 12/3) and Molly Malone (Licensing Option 12/2) in the
Celtic Sea, offshore Ireland. In November 2012, Fastnet was
granted a further Celtic Sea Licensing Option (Block 49/13) and
also agreed to farm-in to Licensing Option 12/5 (Shanagarry).
In February 2013, Fastnet executed an exclusive option agreement
with PSE Kinsale Energy Limited, a wholly owned subsidiary of
Petronas to farm-in to the Deep Kinsale Prospect from 4,000
feet subsea below the producing Kinsale gas field. In May 2013,
the Company was awarded Licensing Option 13/3 (East Mizzen
Licensing Option). The East Mizzen Licensing Option covers an
area of 1,155 km2 and is contiguous with and extends eastwards
from the Mizzen Licensing Option.
With an area of 4,028 km2 under licence, Fastnet during the year
under review has one of the largest acreage positions of any
independent in the Celtic Sea. The licences granted to Fastnet
were selected due to their attractive petroleum geology, major
reserves potential, existing seismic availability and based on our
managements past experience in these specific areas.
The Company began tendering for a 3D seismic vessel in Q1-2013
and following the award of the seismic contract to CGG (using the
SR/V Vantage Vessel) the seismic programme commenced in April
2013. In June 2013 the 3D seismic programme concluded with
1,910 km2 of 3D seismic acquired for US$19 million (12,492,000).
This is the largest ever 3D seismic programme in the Celtic Sea.
The Directors anticipate that this will de-risk and unlock resource
potential and should increase the likelihood of attracting an
industry major to participate in a future drilling programme given
the scale and materiality of the prospective structures already
identified. Final processing and interpretation of the data is
expected to be completed by December 2013, with preliminary
results now expected to be available from October 2013.

06

Fastnet Oil & Gas plc Annual Report 2013

Managing Directors Review continued


Having opened a data room in March 2013, the Company is now
in advanced discussions with several targeted international oil and
gas companies. The farm-out terms are anticipated to involve a
significant contribution to past costs, including 3D seismic and
a contribution to a drilling programme anticipated in 2015. The
level of any contribution to drilling costs will be dependent on
which prospects are sufficiently de-risked for drilling following the
preliminary results of the 3D seismic. It is the Companys objective
to focus on potential partners that have a preference to help fund
early drilling as this is consistent with the Boards monetisation
strategy for shareholders. The discussions are progressing well
andthe Board now expects these to be concluded in Q4 2013.
Project Acquisition and Evaluation
The Fastnet management and technical team have a proven track
record of identifying and creating shareholder value by seeking
early, opportunistic, entry into poorly evaluated assets in basins
with proven petroleum systems that are suitable candidates to
move towards emerging frontier basin status. During the year
we put considerable effort into examining a number of potential
additional projects consistent with our emerging frontier
basin strategy. We have begun the process of de-risking the
asset portfolio and adding value through 3D seismic acquisition.
TheCompany will focus in the coming year on maturing its assets
for early drilling and seeking industry partners to share the risk
andcost of drilling.

Outlook
The Company will continue to execute its strategy for early
monetisation of its assets by accelerating drilling activity through
farm-out transactions. Accordingly, data rooms for both the
Moroccan and Irish assets were opened in 2013. The Company
is focused over the next 12 months on executing its drilling plans
for onshore and offshore Morocco in 2014 and working towards
a multi well drilling programme offshore Ireland for 2015. All of
Fastnets highest ranked prospects for drilling are now covered by
3D seismic, drilling teams are being assembled and rig contracts
are being negotiated to support future well operations. Fastnets
management will work diligently and prudently to ensure the
planned wells in Morocco are designed and executed in a manner
consistent with our stated strategy of early monetisation of our
assets. Morocco, in particular, offers an exciting opportunity to
explore proven petroleum systems in a new African hot spot.
Drilling by other operators is set to begin in Q4 2013 both offshore
and onshore Morocco. Success in any or all of these wells is likely to
boost the potential value of our acreage position.

Paul Griffiths
Managing Director
16 August 2013

07

Operations Review
Morocco
Fastnets early entry timeline

S hell relinquishes Cap Draa and


RimellaLicences

Island Oil & Gas enter Morocco


offshore with Sidi Moussa & Foum
Draa Licence awards and operatorship

Island Oil & Gas/Paul Griffiths enters


Moroccan onshore with Zag licence
award and operatorship

 osmos joins with Pathfinder in


K
Pathfinders application for the
Foum Assaka Licence

 osmos lists on NYSE (US$7bn)


K
and expands exploration acreage
inWest Africa

F arm-out agreed with Kosmos


onFoum Assaka in Q3 2011

2006

2007

2009

2010

2011

2012

 ,577km2 of 3D seismic acquired


2
onFoum Assaka

 osmos set up drilling base


K
atAgadir

 nshore Tarafaya
O
Licence awarded
toIsland Oil & Gas
as operator

 osmos Jubilee
K
Discovery in Ghana

P roduction commences
inGhana at Jubilee field

MoroccoOffshore
Foum Assaka Offshore Morocco
Holder

Interest

Fastnet

18.75%

Kosmos (Operator)

56.25%

ONHYM

25%

Fastnet acquired an 18.75% economic (25% paying) interest in the


Foum Assaka Petroleum Agreement in the Agadir Basin, offshore
Morocco in July 2012 following the acquisition of Pathfinder
Hydrocarbon Ventures Limited (Pathfinder) from Pan Maghreb
Oil and Gas Limited (PMOG, formerly Pathfinder Energy Maghreb
plc). Prior to the acquisition of Pathfinder, PMOG entered into a
royalty deed with Pathfinder, pursuant to which, in consideration
of PMOG undertaking to discharge amounts due to directors and
contractors of Pathfinder and certain third party liabilities, Pathfinder

S ignificant activity from operators


including Cairn, Genel, Galp Pura
Vida, San Leon, Longreach, Tangiers,
Chevron and Chariot to secure
licences offshore Morocco

granted a royalty interest to PMOG in relation to sales of oil and gas


from the Foum Assaka licence area. A US$5 million cash payment
is due to PMOG after receipt of funds from the first commercial
hydrocarbon sale. In addition, a 1% sales royalty is payable by
Fastnet on its interest in Foum Assaka, which increases to 3%
afterrecovery of certain costs. For additional details see note 10.
Background on Foum Assaka
The northern half of the Foum Assaka licence area was previously
held by Shell which relinquished the licence in 2006. Subsequently
the Foum Assaka licence was applied for by Pathfinder and
awarded to Pathfinder and Kosmos Energy Deepwater Morocco
(KEDM) in July 2011 following the issue of the Joint Ministerial
Order. KEDM is a subsidiary of Kosmos Energy Limited (NYSE: KOS)
(Kosmos). The licence was awarded in equal part to Pathfinder
and KEDM following an invitation from Pathfinder to Kosmos to
join the Licence Application. The licence is held under the terms
ofthe Moroccan Hydrocarbon Code.

08

Fastnet Oil & Gas plc Annual Report 2013

Operations Review continued

Initially Pathfinder held a 37.5% economic interest (50% paying


interest) in the Foum Assaka licence. In November 2011, Pathfinder
entered into a farm-out agreement with KEDM under which:

success, Pathfinder has the right to develop and produce oil or


gas for a period of 25 years from the grant of an Exploitation
Concession by the Moroccan government.

Pathfinder farmed out an 18.75% economic interest to KEDM;


hence Pathfinder subsequently (and now) holds an 18.75%
economic (25% paying) interest in the licence;

There is a mandatory 25% relinquishment of the area under


licence at the end of the Initial Exploration Period. During the
Initial Exploration Period, KEDM and Pathfinder agreed to acquire,
process and interpret 2,500 km2 of 3D seismic data, the minimum
exploration work programme agreed with ONHYM was for 500
km2 of 3D data. A working petroleum system has been established
in the onshore and near-shore area of the Agadir Basin based on
onshore and shallow offshore wells. Well control, geological and
geochemical studies suggest possible Cretaceous and Jurassic source
rocks are located in the offshore Agadir Basin. The offshore basin
sediments are interpreted to comprise thick sequences of Lower to
Upper Cretaceous age formations consisting of deepwater channel
and turbidite fan reservoirs. The interpreted prospects trapping
styles are varied and include pre-salt ponded slope fans against salt
domes, salt cored anticlines and sub-salt structures.

Pathfinder received a payment of US$1 million; and


KEDM agreed to carry Pathfinder through the initial exploration
programme agreed with Office National des Hydrocarbons et
des Mines (ONHYM) (the Moroccan state entity responsible
for petroleum exploration and production), capped at a gross
cost of US$16.2 million.
The Moroccan government approved, through the issue of a
JointMinisterial Order, the farm-down from Pathfinder to KEDM
inOctober 2012.
The Foum Assaka licence covers four exploration permits over an
area of 6,473 km2 in the offshore Agadir Basin in water depths
ranging from 300 metres to 2,100 metres. KEDM is the licence
operator with a 56.25% economic (75% paying) interest in the
licence. ONHYM holds the remaining 25% economic (non-paying)
interest in the licence.
Fastnets wholly owned subsidiary, Pathfinder, is currently in the
Initial Exploration Period of the licence, which runs for 2 years
from 1 July 2011. The exploration phase may be extended to July
2019 upon election by the partners. In the event of commercial

3D seismic acquisition has been completed and interpretation


has led to the identification of 15 new Cretaceous deepwater fan
prospects. The shelf slope mid-Cretaceous fan play has not been
tested in the Agadir Basin and represents a major opportunity for
increasing the resource potential of the basin. No wells have been
drilled within the Foum Assaka permits to date, although two
wells have been drilled in the outboard basin area to test primarily
Tertiary reservoir objectives. We would expect drilling on the most
prospective targets during the first half of 2014.

09

MoroccoOnshore
Tendrara Onshore Gas Project Onshore Morocco
Equity after earn in well completion:
Holder

Interest

Fastnet (Operator)

37.5%

Oil and Gas Investments Funds (OGIL)

37.5%

ONHYM

25%

In May 2013, Fastnet agreed an option for a farm-in to eight


exploration blocks comprising the Tendrara Lakbir licence area
onshore Morocco (Tendrara). Tendrara covers an area of
14,548 km2 and the majority of the Tendrara basin in eastern
Morocco, adjacent to the Algerian border, and is considered one
ofMoroccos most prospective basins for Triassic gas.
Highlights of the Tendrara option are:
Entrance fee of US$300,000 (197,250), paid in May 2013
Pay 100% of a pre-development well to be drilled by
28February 2014 or later, by mutual agreement with OGIF
On completion of the well, the Company will receive a 37.5%
net interest in Tendrara on or before 30 September 2014
subject to regulatory consents and approvals
Pay 100% of two additional wells to be drilled by 1 April 2015
and 1 April 2018
Tendrara Background and Work Programme
Five wells drilled within the licence area have encountered gasbearing Triassic sands of the Tagi Formation (Tagi). The Tagi is
the host reservoir of the producing Meskala gas field, along strike
to the west in the Essaouira Basin. The gas discoveries have been
charged from Silurian source rocks that form part of the proven
Palaeozoic-Early Mesozoic petroleum systems covering large parts
of Libya, Algeria and Morocco.
The licence area is south of the Maghreb-Europe gas pipeline
thatdelivers gas supplies from north Africa and the Spanish/
European market.
The Company anticipates drilling an appraisal / pre-development well
in 2014. The objective is to engineer a well to potentially deliver
4 7mm cfgpd on testing; 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 evaluated by the
previous operator by an extended well test in 2008.

Merada Onshore Morocco


Fastnet exercised an option for a 50% participating interest in
a licence application onshore Morocco (the Merada Licence
Application) that had been negotiated with ONYHM by Pathfinder
prior to its acquisition by Fastnet. Fastnets option to participate in
the Merada Licence Application was acquired as part of the terms
of the acquisition of Pathfinder by Fastnet.
The option provides a 50% ground floor paying interest in the
Merada Licence Application, with Drillbit Exploration Limited
(Drillbit Exploration), a wholly owned subsidiary of PMOG, the
former owner of Pathfinder. Fastnet will pay 50% of all exploration
costs including a pro-rata share of a US$1.5 million (986,000)
guarantee in favour of the Moroccan government should the
Merada Licence be awarded under the terms previously negotiated.
In the event of the Licence being awarded Fastnet will pay 50%
ofthe cost of the negotiated work programme (net interest 37.5%
after sharing with Drillbit Exploration pro-rata the ONHYM carry).
At the time of taking up the option there were no back costs.
The area within the Merada Licence Application (the Merada
Project Area) represents an opportunity to target a Miocene
turbidite fan system which the Company believes can generate
traps that are substantially larger than hydrocarbon traps in
neighbouring licence areas.
The Miocene biogenic gas play is well developed in the Rharb
Basinin northeast Morocco, west of the proposed Merada
ProjectArea, where Circle Oil plc executed highly successful
drillingprogrammes in the Sebou and Oulad Nzala blocks in
2008/9 and 2010/11, during which 10 gas discoveries were
madefrom the drilling of 11 wells.
Fastnet has focused its resources on securing the Tendrara farmin option during late 2012 and early 2013 as this represents a
near-term opportunity for shareholder monetisation. With the
completion of the Tendrara farm-in transaction Fastnet can now
re-focus on its Merada application.

10

Fastnet Oil & Gas plc Annual Report 2013

Operations Review continued


Ireland Celtic Sea
1,910 km2 3D seismic survey completed in June 2013
withmulti-well drilling programme planned for 2015
Largest seismic shoot in Celtic Sea
Deep Kinsale and Shanagarry: attractive farm-in prospects
formajors
Huge unrisked gross in-place resources for Mizzen and
MollyMalone

Deep Kinsale
The Company executed an exclusive option agreement with PSE
Kinsale Energy Limited (Kinsale Energy), a subsidiary of Petronas,
for a farm-in to the Kinsale Head prospect from 4,000 feet subsea
below the producing Kinsale gas field; known as Deep Kinsale
and defined by a sub-area within Petroleum Lease No. 1. Fastnet can
earn up to a 60% interest in Deep Kinsale (reducing to a minimum
40% should our partner Kinsale Energy exercise certain back-in
rights linked to cumulative produced BOE resources and an option
toparticipate as a paying partner in the earn-in well) by drilling
awellbefore 30 November 2015.

Deep Kinsale covers part of blocks 48/20, 48/25, 49/16 and


49/21.Fastnet agreed to acquire a minimum of 500 km2 of 3D
seismic by31 December 2013 and to complete geological and
engineering studies.
In May 2013, SRL Consulting completed an independent assessment
of the potential resources of Deep Kinsale. The following table
has been prepared by the Company to summarise the un-risked
prospective hydrocarbon resources in-place in Deep Kinsale and the
associated geological probability of success (GPoS):

11

Trap

Un-risked in-place resource estimates

GPoS

Main risk

Low

Best

High

Middle Wealden Oil (MMbbl)

203.3

856.3

1,685.5

13%

Migration

Lower Wealden Oil (MMbbl)

219

530.1

1,089.1

15%

Migration

Basal Wealden Oil (MMbbl)

146.4

265

532.4

17%

Migration &Trap

Purbeck Oil (MMbbl)

352.4

713.6

1,555.8

15%

Trap

Key: GPoS = geological probability of success; BCF = billion cubic feet of gas, MMbbl = million barrels of oil. 1,000ft3 of gas is equivalent to 0.1847 barrels of oil
source: Wood Mackenzie).

Best estimate un-risked in-place oil volumes for the four reservoir
units taken together are 2.365 billion barrels or 335.3 million
barrels when accounting for the GPoS.
The independent assessment confirms that oil-bearing sands
(based on well log analysis) encountered in the Middle and Lower
Wealden wells drilled by Marathon Oil Corporation (Marathon)
in the early 1970s occur in the same geological structure that hosts
the shallow producing gas sands in the Greensand and Upper
Wealden in the Kinsale gas field.
In February 2013 the Company executed a contract with CGG
Services SA to acquire 3D Seismic data over its acreage in the Celtic
Sea, using the vessel SR/V Vantage in a programme valued at US$19
million (12,492,000). As part of this programme 510 Km2 of 3D
seismic were acquired in April and May 2013 over the Deep Kinsale
Structure beneath the producing Kinsale gas field. Seismic operations
included undershooting the Kinsale Alpha and Bravo platforms, which
are protected by a 500 meter safety exclusion zone. This required
mobilising a second 3D seismic vessel, the SR/V Angler, for a short
period during the acquisition of the data. One of the geological
targets is believed to be the same stratigraphic sequence that has
been successfully tested at Barryroe by the 48/24-10z appraisal well.
However initial seismic interpretation has also revealed the potential
for deeper untested exploration targets which will be the focus of
further evaluation following receipt of the initial 3D seismic results.
This is the first 3D seismic survey over Kinsale Head to target the
deeper oil and gas potential of the Kinsale structure. The intention
is to de-risk the deep structure through potentially better seismic
imaging of both the structure, to confirm the lack of significant fault
compartmentalisation based on the existing older 2D seismic data,
and to investigate the potential for thicker sands in a more basinal
setting north of the existing well control.

Processing and interpretation of the data, which were acquired on


schedule and under budget, is expected to be completed by the end of
2013 with preliminary results available by end October. The Company
believes that the 3D seismic may help define a new exploration play
in the Upper Purbeck, below the tested Barryroe reservoirs, where
potential for lacustrine alluvial and turbidite fans may exist in an
analogous geological setting to the East African Rift System.
The Fastnet farm-in option is exercisable before 30 September 2014,
by commencing a well to provisionally 8,000 feet subsea on or
before 30 November 2015 to test the Purbecko-Wealden reservoirs,
that have already been proved productive in Barryroe, and deeper
potential reservoirs. Upon completion of the well Fastnet will earn up
to a 60% working interest in Deep Kinsale by funding the well drilling
and testing costs (subject to the Kinsale Energy back-in rights below).
Kinsale Energy has a back-in option, exercisable at its discretion
within a period of 30 business days of completion by Fastnet of
theexercise of the Option, to increase its interest in Kinsale Deep
by10%, by paying for 16.667% of the drilling and testing costs
ofthe farm-in well.
Also if there is a commercial development of Deep Kinsale, Kinsale
Energy shall have the option to increase its working interest for
no consideration, by a further 5% once production exceeds 150
MMBOE and by a further 5% once production exceeds 200 MMBOE
subject to Kinsale Energys working interest not exceeding 60%.

12

Fastnet Oil & Gas plc Annual Report 2013

Operations Review continued


Mizzen and Mizzen East
The Company was awarded Licensing Option 12/3 over blocks
55/14 and 55/15 and part of blocks 55/9 and 55/10 in June 2012.
These blocks are in the Mizzen Basin in the North Celtic Sea,
offshore Ireland (the Mizzen Licensing Option).

(EastMizzen Licensing Option). The East Mizzen Licensing Option


is valid from 1 May 2013 until 30 September 2014. It covers an area
of 1,155 km2 and is contiguous with and extends eastwards from
the Mizzen Licensing Option.
Fastnet is the designated operator and has 100% working
interestin both the Mizzen Licensing Option and the East Mizzen
Licensing Option.

Subsequently the Company applied for, and in May 2013 was


awarded, Licensing Option 13/3 over part blocks 56/6, 56/7,
56/8, 56/9, 56/11, 56/12, 56/13 and 56/14 in the Mizzen Basin
and thewestern end of the North Celtic Basin, offshore Ireland
Trap

SLR Consulting (SLR) published an independent technical report


on the Mizzen Licensing Option in July 2012:

Un-risked in-place resource estimates

GPoS

Main risk

Low

Best

High

Wealden Oil (MMbbl)

571.2

1,799.3

3,898.5

4%

Source

Wealden Gas (BCF)

658.6

2,074.7

4,723.6

12%

Seal

1,473.7

3,108.2

9,355.9

5%

Seal & migration

Triassic Gas (BCF)

Key: GPoS = geological probability of success; BCF = billion cubic feet of gas, MMbbl = million barrels of oil. 1,000ft3 of gas is equivalent to 0.1847 barrels of oil
(source: Wood Mackenzie).

The Mizzen Basin is located in water depths of up to 160 metres


and only one well, which encountered oil shows, has been drilled
by Esso in 1975. Our reprocessing of the existing 2D seismic data
has identified several large structures that are prospective for
Triassic, Jurassic and Lower Cretaceous reservoir targets. A new
play has been developed for potential Upper Purbeck lacustrine
turbidites based on seismic character. It is believed that the Mizzen
basin may extend westwards into the South Porcupine Basin and
therefore should be considered as an Atlantic Margin sub-basin in
which a Lower Cretaceous Petroleum system has been identified.

The resource estimates in the SLR report are large, however


the GPoS figures are at levels which required a significant work
programme to mature the prospects in order to de-risk and
identifydrill targets.

Molly Malone
In June 2012 Fastnet was awarded Licensing Option 12/2 over
blocks 50/26 and part of blocks 49/25, 49/30, 50/22 in the Molly
Malone Basin in the North Celtic Sea, offshore Ireland (Molly
Malone Licensing Option).

of aworking petroleum system with potential resources of as


muchas1 billion barrels. No wells have been drilled on the
MollyMalone Licensing Option area and there is only sparse
2Dseismic data available.

The Molly Malone Basin is located within the South Celtic Sea
Basin in water depths of up to 100 metres. The Company believes
that this basin offers an opportunity to confirm the presence

Following the results from the 2D seismic reconnaissance


reprocessing undertaken by WesternGeco and in order to improve
the understanding of the nature of the stratigraphic section in the
Mizzen Basin, the Company conducted a 1,400 km2 3D seismic
survey over the Mizzen and Mizzen East Licensing Options in
May and June 2013. Processing and interpretation of the data is
expected to be completed by end 2013 with preliminary results
available by October.

In addition to their report on the Mizzen Basin SLR Consulting also


published an independent technical report on the Molly Malone
Basin in July 2012:

13

Trap

Unrisked in-place resource estimates


Best estimate

GPoS

Main risk

North prospect Gas (BCF)

10,448.4

12%

Maturity

South Prospect Gas (BCF)

9,127.9

8%

Maturity

North Prospect Oil (MMbbl)

6,677.3

9%

Migration

South Prospect Oil (MMbbl)

5,833.4

5%

Migration

Key: GPoS = geological probability of success; BCF = billion cubic feet of gas, MMbbl = million barrels of oil. 1,000ft3 of gas is equivalent to 0.1847 barrels of oil
(source: Wood Mackenzie).

Thick salt has developed over parts of the Molly Malone Basin
which obscures the mapping of the prospective Triassic Sherwood
Sands over the north-eastern part of the dominant structural lead
mapped. Pre-stack time migration will assist in defining fault plane
and Sherwood Sand reservoir geometry beneath the salt.

acquisition parameters for any potential 3D seismic survey.


Additionally, further analysis of the existing seismic data is needed
to examine the potential for north-eastern closure for the dominant
prospective lead in the Molly Malone Basin before a significant
financial commitment to a 3D seismic survey can be made.

The Board is of the view that it is essential to improve the


understanding of the nature of the stratigraphic section beneath
the Triassic salt in the Molly Malone Basin, through the application
of modern seismic reprocessing techniques and carrying out a
programme of regional studies in order to design the appropriate

The Company is in the process of refining the petroleum system


model through interpretation of existing 2D seismic data and
regional seismic correlation work. Subject to satisfactory results
the Company would move to acquire 3D seismic data in 2014
butwould seek a partner to fund the seismic.

Shanagarry
The Company agreed a farm-in for, an 82.35% working interest
in Licensing Option 12/5 (Shanagarry) in November 2012. The
Licensing Option is held by a joint venture group comprising
Adriatic Oil plc, Carob Limited (consultants to Fastnet) and PetroCeltex Consultancy Limited, a company established in the 1990s
byPaul Griffiths, now Managing Director of Fastnet.

Details of the farm-in agreements


The Licensing Option application was originally made jointly by
Adriatic, CRB and PCX (each as defined below) which, prior to the
execution of the farm-in agreements (Farm-in Agreements) and
the subsequent award of the Licensing Option, had the following
economic interests:

The Shanagarry Licensing Option area lies to the south of the


undeveloped Helvick oil field and northeast of the Old Head of
Kinsale gas field and covers an area of 881 km2. The Licensing
Option is for the period 1 December 2012 to 31 May 2014 and
includes part-blocks 49/18, 49/19, 49/20, 49/23, 49/24 and
49/25in the North Celtic Sea.
Marathon mapped a 120 km2 structure within the Licensing
Option Area that proved to be hydrocarbon-bearing in well 49/19,
drilled in 1984, after logging a gross combined oil and gas column
of approximately 500 feet. Four viable petroleum systems were
proven by the well results, with offset field analogues. The well was
not fully tested at the time due to operational issues and poor gas
economics, since at that time Kinsale satisfied the Irish domestic
market and no gas connector existed to the UK.

Holder

Interest

Adriatic Oil plc (Adriatic)

80%

Carob Limited (CRB)

10%

Petro-Celtex Consultancy Limited


(PCX)

10%

The terms of the Farm-in Agreements, which received consent from


the Minister for the Department of Communications, Energy and
Natural resources (the Department) in April 2013, are as follows:
Adriatic
Adriatic has agreed with Fastnet to farm-out 64.5% of its 80%
interest in Shanagarry. Under the terms of the Farm-in Agreement,
Fastnet must finance the acquisition and processing of 200 km2 of
new 3D seismic over the area before 31st December 2014.

14

Fastnet Oil & Gas plc Annual Report 2013

Operations Review continued


CRB and PCX
Separately, Fastnet has agreed to acquire an 8.925% working
interest out of each of CRBs and PCXs 10% interests in the
Licensing Option (representing a total farm-in of 17.85%). As
consideration for this working interest, Fastnet has agreed to pay
all costs and charges relating to both CRBs and PCXs remaining
1.075% share in Shanagarry up to and until the date of initial
production of hydrocarbons from the first, and if appropriate
the second, petroleum accumulation within Shanagarry that is
developed and produced as a consequence of the submission
ofaseparate detailed plan of development.

Details of Shanagarry
The Licensing Option has an 18 month initial term that can be
extended by a further 18 months subject to a satisfactory work
programme being agreed with the Petroleum Affairs Division of the
Department of Communications, Energy and Natural Resources.
Should the Licensing Option be extended, Fastnet expects to acquire
a minimum of 200 km2 of 3D seismic. Fastnet will operate the
Licensing Option on behalf of its partners Adriatic, CRB and PCX.
The main elements of the work programme include reprocessing
of 600 km of existing 2D seismic data, analysis of the drill stem test
data for the Basal Wealden and Purbeck reservoir sequences and a
regional analysis of the working petroleum systems encountered in
the 49/19-1 well Middle Jurassic, Upper Jurassic, Basal Wealden
and Upper Wealden.

Following execution of the Farm-in Agreements, the holdings in


theLicensing Option are:
Holder

Interest

Fastnet (Operator)

82.35%

Adriatic

15.5%

CRB

1.075%

PCX

1.075%

Trap

In April 2013 SLR Consulting completed an independent


assessment of the prospective hydrocarbon resources in the
49/191 Shanagarry structure and the associated GPoS:

Unrisked in-place resource estimates


Best estimate

GPoS

Upper Wealden Gas (BCF)

135.9

12%

Lower Wealden Oil (MMbbl)

796.6

14%

Purbeck Oil (MMbbl)

501.6

12%

Kimmeridgian-Portlandian Gas (BCF)

885.7

5%

Upper/Middle Jurassic Gas (BCF)

321.1

5%

Key: GPoS = geological probability of success; BCF = billion cubic feet of gas, MMbbl = million barrels of oil. 1,000ft3 of gas is equivalent to 0.1847 barrels of oil
(source: Wood Mackenzie).

The 49/19-1 structure covers an area of 123 km2, making it


one of the more significant hydrocarbon-bearing structures in
the North Celtic Sea. Four hydrocarbon-bearing intervals were
encountered in 49/19-1, whilst the Upper Wealden may potentially
be hydrocarbon-bearing up-dip from the well based on offset
gasdiscoveries at Ardmore and Old Head. Purbeck and Lower
Wealden reservoirs, oil-bearing in 49/19-1, form the lowest risked
reservoir objectives.

The Kimmeridgian/Portlandian over-pressured tight gas and


Middle/Upper Jurassic gas-bearing intervals have also been
evaluated. Subject to a scoping well design to address the issue of
collecting the data required to model the potential for sustainable
commercial flow rates, the tight gas potential prospective
resources could be a viable add-on to a development of the
conventional oil and gas prospective resources in the 49/19-1
structure, as a result of economies of scale should the area become
a hub for appraisal and development. In such a case a number
of currently stranded gas assets could also be developed as satellite
tie-backs to the hub.

15

Block 49/13
The Company was awarded an 85% interest in licensing option
12/6 covering part blocks 49/7, 49/8, 49/9, 49/12 and 49/13 in
November 2012. The first phase of the licensing option runs to
14May 2014.
The holdings in the Licensing Option are:
Holder

Interest

Fastnet (Operator)

85%

CRB

7.5%

PCX

7.5%

The Licensing Option acreage lies in water depths of up to 100


metres in the North Celtic Sea basin. Marathon drilled two wells in
the area of the Licensing Option in 1974 (49/13-1) and 1986 (with
Ardmore Exploration Ltd 49/13-2).
Well 49/13-1 tested a shallow anticline generated by Tertiary
basin inversion that could be identified at the time on the existing
poor quality 2D seismic data. The well encountered oil-bearing
Purbecko-Wealden sands over a gross interval of 300 feet, now
considered to be stratigraphically analogous to the hydrocarbonbearing reservoirs in the Barryroe oil field to the southwest. The
interval was tested by Marathon but it did not flow oil as the test
tool became plugged with sand.

Data Room
The Company opened a data room in March 2013 for its Celtic
Sea assets and we are now in discussions with several targeted
international oil and gas companies regarding the Companys
various assets. The Company is targeting partnerships and
farmouts that can deliver a 2015 multi well-drilling programme
inthe Celtic Sea.

Later seismic mapping, based on new 2D seismic acquisition in


1985 by Ardmore Exploration Limited (Ardmore), Marathons
partner in the 49/13-2 well, showed that the 49/13-1 well was
drilled significantly down-dip from the crest of the structure.
Marathon and Ardmore drilled 49/13-2 in 1986 to test a downfaulted Upper Jurassic structural trap analogous to that successfully
tested by Gulf Oil in 1983 (49/9-2, Helvick oil discovery). The
well encountered oil in the Upper Jurassic over a gross interval of
approximately 700 feet. Marathon tested the well but failed to flow
any significant amounts of oil due to the low gravity of the oil. The
potential for lighter oil exists in deeper Upper Jurassic sands updip
from 49/13-2.
The large vertical extent of the hydrocarbon-bearing sections
seenin the above two wells provides encouragement that
significant in-place oil resources may exist within the area of
theLicensing Option.
The Company is now re-interpreting the historic legacy well and
2D seismic data together with other information available and remapping the prospective structures. The work programme for the
second phase of the Licensing Option will be determined after the
above studies have been completed.

16

Fastnet Oil & Gas plc Annual Report 2013

Board of Directors
Cathal Friel, Executive Chairman
Cathal is managing director and one of the founders of Raglan Road Capital Limited (which trades as Raglan Capital), a Dublin and
Londonbased corporate finance and merchant banking group. Cathal has over 25 years of managerial, entrepreneurial and corporate
finance experience, as well as successfully advising major UK and Irish companies on domestic and international transactions.
He was previously one of the founding directors of Dublin based Merrion Corporate Finance, where he helped build Merrion to becoming
one of Irelands top three corporate finance and stockbroking firms in less than 6 years, before successfully selling itfor approximately
100 million in 2006.
Paul Griffiths, Managing Director
Paul is a petroleum geologist with over 37 years experience in early stage oil and gas prospecting. He was a founder and former CEO of
Island Oil & Gas plc which drilled the first successful exploration well offshore south east Ireland in 16 years and was subsequently acquired
by San Leon Energy. He has previous experience in both Gulf Oil and Libyan National Oil Corporation. Paul is a graduate of the Royal
School of Mines (London) in Geology.
Carol Law, Executive Director
Carol is a geologist by training and has over 28 years experience in the petroleum industry in exploration management, exploration
geology, research, and consulting in a variety of geological settings worldwide. During her career Carol has been involved in exploration
activities in more than 40 countries and has been a member of teams responsible for discoveries in Mozambique (Rovuma Gas), Ghana
(Jubilee), Brazil (multiple Campos Basin discoveries), Alaska (Nikaitchuq), China (Bohai Bay) plus Angola, Gulf of Mexico, and others. Most
recently Carol was Exploration Manager East Africa and Caribbean for Anadarko Petroleum Corporation, responsible for the play finding
Prosperidade gas complex in Rovuma Area 1, offshore Mozambique. Carol previously held a number of senior roles with Kerr McGee and
BP/Amoco. She holds a MSc in Geology from Virginia Polytechnic Institute and State University and a B.A. in Geology from the University
of Montana.
Michael Nolan, Non-executive Director
A founding director of Terra Energy Limited in 2008, Michael is a Chartered Accountant having worked in practice with Deloitte in Dublin.
He is currently a non-executive Director of Cove Energy Limited, formerly an AIM quoted oil and gas exploration company focused on
East Africa which was sold to PTTEP of Thailand in August 2012. He acts as a non-executive director of Vancouver based, Rathdowney
Resources Limited, a private natural resource company operating in Europe and supported by the Hunter Dickinson group and listed
on TSX-V. He is also a director of AIM quoted companies, Tiger Resource Finance plc and Orogen Gold plc. He acted as chief executive
officer of AIM listed, mining company, Minmet plc from 1999 to 2007. He also serves on the Board of several resource exploration and
investment companies.
Dr Stephen Staley, Non-executive Director
Stephen is a Fellow of the Geological Society holds a BSc (Hons.) in Geophysics from Edinburgh University, a PhD in Petroleum Geology
from Sheffield University and an MBA from Warwick University. Stephen was founder and former Managing Director of Independent
Resources plc and is founder and Managing Director of Derwent Resources Limited. Stephen has 27 years experience in the energy sector,
including Conoco and BP, with considerable experience in the European, African and Asian oil, gas and power sectors.
Michael Edelson, Non-executive Director
Michael has been a non-executive Director of Sterling Green Group plc (now Fastnet Oil & Gas plc) since he founded the Company (then
called Hamilton Partners plc). Since 1990 he has founded and been on the board of many listed companies, largely on AIM, including
ASOS (formerly Brindle plc), Magic Moments plc, Knutsford Group plc, Mercury Recycling Group plc, Prestbury Group plc and Singer &
Friedlander AIM 3 VCT plc.
He has been a member of the board of Manchester United Football Club Limited since 1982.

17

Directors Report
For the year ended 31 March 2013

The Directors of Fastnet Oil & Gas plc (the Company) present their report and the Financial Statements of the Company and its
subsidiary undertakings (together the Group or Fastnet) for the year ended 31 March 2013.
Principal Activity and Business Review
Fastnet is an independent oil and gas exploration company focused on identifying early stage exploration and appraisal opportunities in
under-explored and frontier territories. The Group has a portfolio of prospective exploration assets offshore Ireland and both onshore
andoffshore Morocco.
Key Performance Indicators
The key indicators of performance for the Group are its success in identifying, acquiring, developing and divesting of investment in
exploration projects so as to create shareholder value. The Group has an early exit strategy, during the exploration cycle, focused on
derisking assets to deliver potential upside and near-term results.
Since IPO in June 2012 the Company has moved quickly to assemble a portfolio of exploration prospects offshore and onshore Morocco
and in the Celtic Sea, offshore Ireland.
In Morocco, the Groups participation in the offshore Foum Assaka project and the recent option for a farm-in to the onshore Tendrara
licence in May 2013 has cemented the Groups position as a leading oil and gas exploration company in Morocco with a total licence area
of 21,026 km2. In addition, the Group has an interest in five offshore Ireland licensing options and an exclusive option agreement for a
farm-in to the Deep Kinsale Prospect.
Control of bank and cash balances is a priority of the Group and these are budgeted and monitored closely to ensure that the Group
has access to sufficient funds to finance the initial stage exploration programmes on these licences. The Group also follows standard
exploration industry practice of seeking to reduce its financial exposure to drilling and share risks by farming out.
At this stage of its development the Companys performance is not measured using quantitative key performance measures. A qualitative
review of the performance in the year is provided in the Chairmans Statement and Managing Directors Review.
Principal Risks and Uncertainties
The Group is subject to various risks in the pursuit of its achievements of its business objectives including those that derive from oil and gas
exploration which is inherently costly and risky.
The success of the Company will depend on its ability to engage in appropriate exploration projects and to attract sufficient funding and/
or farm-outs to successfully develop these. The following summarises the principal risks and uncertainties of the Group:
Organisational Risk
The Group is dependent on the experience and skills of the Executive Directors and senior management to successfully execute its strategy;
the loss of such key contributors would present a risk to the business. Staffing levels and development of business processes and policies
are kept under regular review to ensure that they are appropriate and adequate for the scale and growth of the Groups business.
Industry and Operational Risk
The Groups activities are speculative and involve a high degree of risk. The Groups exploration work involves both onshore and offshore
geological work programmes. Interpretations of the results of these programmes are dependent on judgement and assessments that
are speculative and these interpretations are applied in designing further work programmes to which the Group can commit significant
resources. Work programmes often involve drilling and other geological work that presents significant engineering challenges that are
subject to unexpected operational problems. The actual costs of such programmes can vary significantly from expectations as a result.
There is no assurance that the Groups exploration activities will be successful. The Group continually seeks to manage this risk by
controlling its funding and financing risk and in particular by bringing farm-in partners who demonstrate technical skills and experience
insimilar projects worldwide.

18

Fastnet Oil & Gas plc Annual Report 2013

Directors Report continued


The Group participates in farm-in arrangements whereby it contributes towards its share of underlying exploration and evaluation
projects. Due to the involvement of co-venturers in its exploration programmes the Group may be adversely affected by any commercial
misalignment with these co-venturers.
The Group operates through subsidiary companies and has operations in Morocco and Ireland in addition to offices in Manchester and
Dublin. The Group is subject to both taxation and other legislation in the countries that it operates and therefore may be affected by any
adverse legislative changes in those jurisdictions. On a project level the Company operates in stable jurisdictions with undisputed authority.
Ireland and Morocco have established minerals and exploration codes and fiscal regimes. Before engaging in any additional projects the
Company ensures that a detailed due diligence process is undertaken.
Financial Risk
The financial risk management objectives and policies of the Group are detailed in note 20 of the Notes to the Financial Statements.
Insurance
The Group has in place insurance protection, including Directors and Officers liability policy, for risk of loss where management deems
appropriate and cost effective; however in some cases risks cannot be effectively covered by insurance and the cover in place may not
besufficient to cover the extent of potential liabilities.
Results and dividends
The results for the year are set out on page 25.
The Directors do not recommend payment of a final dividend.
Corporate Governance
The Directors recognise the importance of sound corporate governance and although the Company, as an AIM and ESM quoted company,
is not required to comply with the UK Corporate Governance Code (The Code) on corporate governance as issued by the Financial
Reporting Council, the Company complies with the main provisions of the Code insofar as they are appropriate given the Companys size
and stage of development.
The Company does not fully comply with the Code, to the extent that, amongst other things, the Company does not have a Nomination
Committee, as the Board does not consider it appropriate to establish one at this stage of the Companys development.
The Company has established an Audit Committee and Remuneration Committee and their functions are set out below. Additionally, the
Company has adopted a share dealing code for Directors and employees of the Company, which is appropriate for a Company with its
shares trading on AIM and ESM. The Board will comply with Rule 21 of the AIM Rules and the ESM Rules relating to directors dealings
and will ensure compliance by the Companys applicable employees (as defined in the AIM Rules and the ESM Rules).
Board of Directors (Board)
The Boards main roles are to create value for shareholders, to provide entrepreneurial leadership to the Group and to develop and
approve the Groups strategic objectives. While operational and financial management are delegated to Executive Directors, key financial
and compliance issues and significant operational and management matters are subject to Board approval. The Board is responsible for
the determination of capital structure, communication with shareholders, Board and executive management appointments and major
contracts and for ensuring that necessary financial and other resources are made available to the Group to meet its objectives.
Matters for which the Board is specifically responsible include setting and monitoring business strategy, evaluating exploration
opportunities and risks, approving capital expenditure on exploration projects, approving investments and disposals, approving budgets
and monitoring performance against budgets, reviewing the Groups health and safety policy and considering and appointing new
Directors and the Company Secretary.

19

The Board comprises an executive Chairman, two executive Directors (including a Managing Director) and three other non-executive
Directors. The Board meets frequently to consider all aspects of the Groups activities. All Directors are expected to attend the Board
meetings. All Directors participate in preparing the agenda for Board meetings and receive relevant reports and documentation on matters
to be discussed on a timely basis so as to ensure that they can fully participate in the discussion on the agenda items. The Directors have
access to the Company Secretary and may obtain independent professional advice at the Groups expense. The Directors have access to
comprehensive financial, operational and strategic information to assist them in the discharge of their duties.
Under the terms of the Companys Articles of Association, at least one third of the Board must seek re-election to the Board at the
AnnualGeneral Meeting each year. All new Directors appointed since the previous Annual General Meeting are required to seek election
at the next Annual General Meeting. The Directors required to seek re-election at the next Annual General Meeting are Michael Edelson,
Carol Law and Paul Griffiths.
The Executive Directors who served on the Board during the year were as follows:
Ian Aspinall (resigned 11 June 2012)
Stephen Staley (appointed 11 June 2012, non-executive Director from 13 November 2012)
Carol Law (appointed 7 October 2012)
Cathal Friel (appointed 13 November 2012)
Paul Griffiths (appointed 13 November 2012)
The Non-Executive Directors who served during the year were as follows:
Michael Edelson
Cathal Friel (appointed 11 June 2012, executive Director from 13 November 2012)
Michael Nolan (appointed 11 June 2012)
Stephen Staley (appointed 13 November 2012)
Board Committees
The Company has an Audit Committee and a Remuneration Committee with formally delegated duties and responsibilities.
Thecomposition of these committees may change over time as the composition of the Board changes.
Audit Committee
The Audit Committee comprises Michael Nolan and Cathal Friel, with Michael Nolan as chairman.
The Audit Committee is responsible for:
the terms of engagement of the Groups auditors and, in consultation with the auditors, the scope of the audit,
the review of reports from management and the Groups auditors relating to the interim and annual accounts and the accounting
andinternal control systems in use throughout the Group,
compliance with legal and regulatory requirements.
Remuneration Committee
The remuneration committee comprises Michael Nolan, Cathal Friel and Michael Edelson, with Cathal Friel as chairman.
The remuneration committee is responsible for the scale and structure of the executive Directors and senior employees remuneration
andthe terms of their respective service or employment contracts, including share option schemes and other bonus arrangements.
The remuneration and terms and conditions of the non-executive Directors of the Company will be set by the executive members of the
Board. No Director or manager is involved in any decision as to their own remuneration.

20

Fastnet Oil & Gas plc Annual Report 2013

Directors Report continued


Directors RemunerationBase Fees
The base annual fees as at 1 April 2012 (or date of appointment if later) that applied for the year to 31 March 2013 are detailed below.

Executive Directors

Annual fee,
year to
31 March 2013

Cathal Friel
Paul Griffiths
Carol Law

10,000
60,000
US$120,000

Non-executive Directors

Annual fee,
year to
31 March 2013

Michael Nolan
Michael Edelson
Stephen StaleyA
A

10,000
10,000
10,000

Stephen Staley served as an executive director from 11 June 2012 to 13 November 2012. His base annual fee was 65,000.

Directors Remuneration Current Year


The remuneration of Directors for the year ended 31 March 2013 was as follows:

Executive Directors
Cathal Friel
Paul Griffiths
Carol Law
Stephen Staley
Ian Aspinall
Non-executive Directors
Michael Edelson
Michael Nolan
Stephen Staley
Cathal Friel
Total

Base fees
000

Performance
bonus
000

Loss of
office
000

Total
000

4
23
37
45
3

15

16

4
23
37
76
3

13
8
4
4
141

15

16

13
8
4
4
172

Internal Controls
The Directors are responsible for the Groups system of internal controls, the setting of appropriate policies on these controls, and regular
assurance that the system is functioning effectively and that it is effective in managing business risk.
The Audit Committee monitors the Groups internal control procedures, reviews the internal control process and risk management
procedures and reports its conclusions and recommendations to the Board.

21

Communications with Shareholders


Good and effective communication with shareholders has been given a high priority by the Board. We regard good communication
with investors (both institutional and retail) and analysts as an essential part of the on-going operations of the Company. Fastnet
is committed to providing up to date corporate information to existing and potential shareholders. The Group maintains a website
(www.fastnetoilandgas.com) which contains an investor relations section whereby existing and potential investors can access Company
information and reports, contact the Company and register to receive Company news alerts.
During the year, the senior management team conducted an extensive programme of face-to face communication. This included both
one-on-one and group meetings with institutional investors in the UK, Ireland, and across Europe, as well as investor conferences in
theUK.
Share Capital Structure
The Company has a single class of share capital, Ordinary Shares of 3.8 pence each. The Companys Ordinary Shares are listed on the
Alternative Investment Market (AIM) market of the London Stock Exchange (ticker: FAST.L) and the Enterprise Securities Market of
theIrish Stock Exchange (ticker: FOI). At 31 March 2013, 273,940,493 Ordinary Shares were in issue. Details of share issues and changes
tothe capital structure during the year are set out in note 15.
Substantial Shareholdings
Rank

Investor

No of shares at
24July 2013

% of issued
capital

1
2
3

Pan Maghreb Oil and Gas LimitedA


Cathal FrielB
Standard Life Investments Limited

40,688,212
18,888,051
9,315,719

14.85
6.90
3.40

Paul Griffiths is a director of Pan Maghreb Oil and Gas Limited and holds a 37.5% interest in the issued share capital of that company.

15,554,857 of these shares are held by Raglan Road Capital Limited, a company in which Cathal Friel and his wife, Pamela Iyer, have a 90% interest.

Directors and their Interests


At 31 March 2013 and at the date of this report the Directors of the Company held the following interest in the Ordinary Shares and share
options/warrants of Fastnet Oil & Gas plc:
Director

Cathal Friel
Paul Griffiths
Carol Law
Michael Nolan
Michael Edelson
Stephen Staley

Ordinary Shares of
0.038 each

18,888,051A
18,813,473B

3,341,243
922,384
3,333,183

Share options of
0.038 each

5,000,000D
1,777,697E
131,578

Share warrants of
0.038 each

Weighted average
exercise price

666,667C

17p
21.45p
5.2p
3.8p

15,554,857 of these Ordinary Shares are held by Raglan Road Capital Limited, a company in which Cathal Friel and his wife, Pamela Iyer, have a 90% interest.

P aul Griffiths interest in the Ordinary Shares in the Company includes 1,777,697 Ordinary Shares held by Celtex Exploration Services Limited, a company in which Paul
Griffiths has a beneficial interest, 1,777,697 Ordinary Shares held in the personal name of Paul Griffiths and 40,688,212 Ordinary Shares held by Pan Maghreb Oil and Gas
Limited a company in which Paul Griffiths has a 37.5% interest.

The share warrants are held through Petro-Celtex Consultancy Limited, a company 100% owned and controlled by Paul Griffiths.

3,000,000 of these share options become exercisable on the achievement of certain performance related milestones in relation to Fastnets exploration assets.

These share options are held in a share appreciation agreement with JS Consult Limited.

See note 17 of the Financial Statements for further details of share options.

22

Fastnet Oil & Gas plc Annual Report 2013

Directors Report continued


Going Concern
After making appropriate enquires, the Directors consider that the Company and the Group has adequate resources to continue in
business for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the Financial Statements.
Aspart of their enquires the Directors reviewed budgets, projected cash flows, and other relevant information for 12 months from the
date of approval of the 2013 Annual Report.
The Company is focused over the next 12 months on executing its drilling plans for onshore and offshore Morocco in 2014 and
working towards a multi well drilling programme offshore Ireland for 2015. The Group is fully funded to meet all current licensing phase
commitments and obligations together, subject to successful farm-outs, with a non-obligatory drilling programme onshore Morocco and
accelerated 3D seismic acquisition offshore Ireland in 2013. The Moroccan and Irish licences have been de-risked to a stage where major
partners can be brought in, accordingly the Company has opened data rooms for both our Moroccan and Irish assets in 2013.
The Groups forecasts and projections reflect the Directors plans for the coming year and include operating expenditures and capital
expenditure on exploration. The Group performs sensitivity analysis on its projected cashflows and when performing sensitivities has taken
into account reasonable changes in market conditions, potential upside from the receipt of farm-out funds and removed cash outflows
from sources which are not yet contractually binding. The Groups position as operator in its exploration activities onshore Morocco and
offshore Ireland gives it flexibility in managing the maintenance and development of its asset portfolio.
The Groups forecasts, taking into account reasonably possible changes as described above, show that the Group will be able to operate
and have significant financial headroom for the 12 months from the date of approval of the 2013 Annual Report.
Events after the Reporting Period
Events after the reporting period are set out in note 22 to the Financial Statements.
Charitable and Political Donations
The Group made no political or charitable donations during the current or previous period.
Suppliers Payment Policy
It is the Groups policy to fix the terms of payment with suppliers when agreeing the terms of each transaction and the Group abides
bythese terms of payment. The number of days purchases outstanding for payment by the Group at the year-end was 10.5.
Auditors
The Board are recommending BDO LLP for re-appointment as auditor of the Company. BDO LLP have expressed their willingness toaccept
this appointment and a resolution re-appointing them will be submitted to the forthcoming Annual General Meeting.
Disclosure of Information to the Auditors
All of the current Directors have taken all the steps that they ought to have taken to make themselves aware of any information needed
bythe Companys auditors for the purposes of their audit and to establish that the auditors are aware of that information. The Directors
are not aware of any relevant audit information of which the auditors are unaware.

23

Directors Responsibilities
The Directors are responsible for preparing the Directors Report and the Financial Statements in accordance with applicable law
andregulations.
Company law requires the Directors to prepare Financial Statements for each financial year. Under that law the Directors have elected to
prepare the Group and Company Financial Statements in accordance with International Financial Reporting Standards (IFRSs) as adopted
by the European Union. Under company law the Directors must not approve the Financial Statements unless they are satisfied that they
give a true and fair view of the state of affairs of the Group and Company and of the profit or loss of the Group for that period. The
Directors are also required to prepare Financial Statements in accordance with the rules of the London Stock Exchange for companies
trading securities on AIM.
In preparing these Financial Statements, the Directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether they have been prepared in accordance with IFRSs as adopted by the European Union, subject to any material
departures disclosed and explained in the Financial Statements; and
prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the company will continue
inbusiness.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Companys transactions
and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the Financial
Statements comply with the requirements of the Companies Act 2006. They are also responsible for safeguarding the assets of the
Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Website Publication
The Directors are responsible for ensuring the Annual Report and the Financial Statements are made available on a website. Financial
Statements are published on the Companys website in accordance with legislation in the United Kingdom governing the preparation
and dissemination of Financial Statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the
Companys website is the responsibility of the Directors. The Directors responsibility also extends to the on-going integrity of the Financial
Statements contained therein.
On behalf of the board

Cathal Friel

Paul Griffiths

Director Director
Date 16 August 2013

24

Fastnet Oil & Gas plc Annual Report 2013

Independent Auditors Report


For the year ended 31 March 2013

Independent auditors report to the members of Fastnet Oil & Gas plc
We have audited the financial statements of Fastnet Oil & Gas plc for the year ended 31 March 2013 which comprise the consolidated
statement of comprehensive income, the consolidated statement of financial position, the consolidated statement of cash flows, the
consolidated statement of changes in equity, the company statement of financial position, the company statement of cash flows,
the company statement of changes in equity and the related notes. The financial reporting framework that has been applied in their
preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union and, as regards
theparent company financial statements, as applied in accordance with the provisions of the Companies Act 2006.
This report is made solely to the companys members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the companys members those matters we are required to state to them in
an auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the company and the companys members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the statement of directors responsibilities, the directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial
statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to
comply with the Auditing Practices Boards Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the Financial Reporting Councils website at
www.frc.org.uk/auditscopeukprivate.
Opinion on financial statements
In our opinion:
the financial statements give a true and fair view of the state of the groups and the parent companys affairs as at 31 March 2013
andof the groups loss for the year then ended;
the group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union;
the parent company financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union
and as applied in accordance with the provisions of the Companies Act 2006; and
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the directors report for the financial year for which the financial statements are prepared is
consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received
from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Mark Sykes (senior statutory auditor)


For and on behalf of BDO LLP, statutory auditor
Manchester
United Kingdom
Date 16 August 2013
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

25

Consolidated Statement of Comprehensive Income


For the year ended 31 March 2013

Notes

Continuing operations
Revenue
Operational costs
Gross loss
General and administrative costs
Reverse asset and other acquisition costs
Other operating income
Share based payments
Operating loss
Finance revenue
Net foreign exchange gain
Loss on ordinary activities before taxation
Tax on loss on ordinary activities
Loss and total comprehensive loss for the period attributable to the equity
holders of the parent
Loss per share
Loss per share basic and diluted, attributable to ordinary equity holders
of the parent (pence)

12 months to
31 March
2013
000

3 months to
31 March
2012
000

(970)
(1,087)
5
(258)
(2,310)
210
706
(1,394)

(73)

(73)
3

(70)

(1,394)

(70)

(0.72)

(0.13)

10
17
6

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

26

Fastnet Oil & Gas plc Annual Report 2013

Consolidated Statement of Financial Position


As at 31 March 2013

31 March
2013
000

31 March
2012
000

11
9

8
7,917
7,925

13
14

73
20,736
20,809
28,734

85
646
731
732

15

10,410
18,801
609
(1,640)
28,180

304
1,794
(1,215)
(246)
637

17

111
111

18

443
443
554
28,734

95
95
95
732

Notes

Assets
Non-current assets
Property, plant and equipment
Exploration and evaluation assets
Total non-current assets
Current assets
Trade and other receivables
Cash and cash equivalents
Total current assets
Total assets
Equity and liabilities
Equity attributable to owners of the parent
Share capital
Share premium
Other reserves
Retained earnings
Total equity
Non-current liabilities
Liability for share based payments
Total non-current liabilities
Current liabilities
Trade and other payables
Total current liabilities
Total liabilities
Total equity and liabilities

The Financial Statements set out on pages 25 to 51 were approved and authorised for issue by the Directors on 16 August 2013.
They are signed on the Boards behalf by:

Cathal Friel

Paul Griffiths

Company Number

Director Director 5316808

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

27

Consolidated Statement of Cash Flows


For the year ended 31 March 2013

Notes

Cash flows from operating activities


Group operating loss for the period
Depreciation
Share based payment expense
Non-cash adjustment notional issue of shares
Movement in working capital:
Decrease/ (increase) in trade and other receivables
(Decrease)/ increase in trade and other payables
Net cash flow from operating activities
Cash flow from investing activities
Payments for property, plant and equipment
Expenditure on exploration and evaluation assets
Net cash outflow on acquisition of subsidiary
Net cash inflow on reverse asset acquisition
Bank interest received
Net cash flow from investing activities

11
17
10

11

Cash flow from financing activities


Net proceeds from issue of equity instruments
Repayment of loan
Net cash flow from financing activities
Exchange and other movements
Net change in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

14
14

12 months to
31 March
2013
000

3 months to
31 March
2012
000

(2,310)
3
258
809

(73)
1

647
(115)
(708)

(80)
32
(120)

(10)
(2,312)
(642)
37
210
(2,717)

3
3

23,487
(678)
22,809
706

77

77

20,090
646
20,736

(40)
686
646

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

28

Fastnet Oil & Gas plc Annual Report 2013

Consolidated Statement of Changes in Equity


For the year ended 31 March 2013

Notes

Balance at 1 January 2012


Loss for the period
Issue of share capital
Reclassification of reservesA
Balance at 31 March 2012
Balance at 1 April 2012
Loss for the period
Share based payments
Issue of share capital
Acquisition of subsidiariesB
Reverse asset acquisitionA
Balance at 31 March 2013

15

Share
capital
000

304

10
(10)
304
304

10,106

10,410

Share
premium
000

1,794

67
(67)
1,794
1,794

(279)
17,286

18,801

Share based
payment
reserve
000

Merger
reserve
000

448

9
457

7,547

7,547

Reverse asset
acquisition
reserve
000

(1,298)

77
(1,221)
(1,221)

(6,180)
(7,401)

Capital
reserve
000

6
6

Retained
earnings
000

(176)
(70)

(246)
(246)
(1,394)

(1,640)

Total
000

630
(70)
77

637
637
(1,394)
169
27,392
7,547
(6,171)
28,180

Reverse asset acquisition reserve


The reverse asset acquisition reserve arose during the year ended 31 March 2013 in respect of the acquisition by Fastnet Oil & Gas plc
(formerly Sterling Green Group plc) of Fastnet Oil and Gas (Ireland) Limited (formerly Terra Energy Limited). Since the shareholders of Terra
Energy Limited became the majority shareholders of the enlarged group the acquisition is accounted for as though there is a continuation
of Terra Energy Limiteds Financial Statements. The reverse asset acquisition reserve is created to maintain the equity structure of Sterling
Green Group plc in compliance with UK company law.
A

Merger reserve
The current year merger reserve was created on the acquisitions of Terra Energy Limited and Pathfinder Hydrocarbon Ventures Limited.
Consideration on the acquisition of these subsidiaries included the issuance of shares. Under section 612 of the Companies Act 2006,
thepremium on these shares has been included in a merger reserve.

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

29

Company Statement of Financial Position


As at 31 March 2013

31 March
2013
000

31 March
2012
000

12

14,965
14,965

13
14

61
20,373
20,434
35,399

287
149
436
436

15

10,410
18,801
8,010
(2,165)
35,056

304
1,794
6
(1,942)
162

17

111
111

18

232
232
343
35,399

274
274
274
436

Notes

Assets
Non-current assets
Investment in subsidiaries
Total non-current assets
Current assets
Trade and other receivables
Cash and cash equivalents
Total current assets
Total assets
Equity and liabilities
Equity attributable to owners of the company
Share capital
Share premium
Other reserves
Retained earnings
Total equity
Non-current liabilities
Liability for share based payments
Total non-current liabilities
Current liabilities
Trade and other payables
Total current liabilities
Total liabilities
Total equity and liabilities

The Financial Statements set out on pages 25 to 51 were approved and authorised for issue by the Directors on 16 August 2013.
They are signed on the Boards behalf by:

Cathal Friel

Paul Griffiths

Company Number

Director Director 5316808

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

30

Fastnet Oil & Gas plc Annual Report 2013

Company Statement of Cash Flows


For the year ended 31 March 2013

Notes

Cash flows from operating activities


Operating loss for the period
Share based payment expense
Impairment loss on liquidation of subsidiary
Impairment loss on disposal of subsidiaries
Investment income
Movements in working capital:
Decrease/(increase) in trade and other receivables
(Decrease)/increase in trade and other payables
Net cash flow from operating activities

17

13
18

Cash flow from investing activities


Loans repaid by subsidiaries
Loans to subsidiaries
Net cash outflow on acquisition of subsidiary
Net cash inflow on reverse asset acquisition
Bank interest received
Net cash flow from investing activities
Cash flow from financing activities
Net proceeds from issue of equity instruments
Funds advanced to subsidiary companies
Net cash flow from financing activities
Foreign exchange and other movements
Net change in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

12

14
14

12 months to
31 March
2013
000

12 months to
31 March
2012
000

(1,180)
270

(516)

346
64
(105)

226
(42)
(726)

(283)
247
(247)

(1,395)
(32)
200
(1,227)

585
(190)

395

23,408
(1,988)
21,420
757

20,224
149
20,373

148
1
149

31

Company Statement of Changes in Equity


For the year ended 31 March 2013

Notes

Balance at 1 April 2011


Loss for the period
Reclassification of merger reserveA
Balance at 31 March 2012
Balance at 1 April 2012
Loss for the period
Share based payments
Issue of share capital
Acquisition of subsidiariesA
Balance at 31 March 2013

15

Share
capital
000

Share
premium
000

Share based
payment
reserve
000

304

304

1,794

1,794

891

(891)

(2,317)
(516)
891
(1,942)

678
(516)

162

304

10,106

10,410

1,794

(279)
17,286

18,801

457

457

7,547
7,547

(1,942)
(223)

(2,165)

162
(223)
178
27,392
7,547
35,056

Merger
reserve
000

Capital
reserve
000

Retained
earnings
000

Total
000

Merger reserve
The merger reserve at 1 April 2011 was created on the acquisition of Sterling Green Limited. Following the appointment on 3 February
2012 of a liquidator for Sterling Green Limited, the merger reserve was reclassified to accumulated losses.

The current year merger reserve was created on the acquisitions of Terra Energy Limited and Pathfinder Hydrocarbon Ventures Limited.
Consideration on the acquisition of these subsidiaries included the issuance of shares. Under section 612 of the Companies Act 2006,
thepremium on these shares has been included in a merger reserve.

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

32

Fastnet Oil & Gas plc Annual Report 2013

Notes to the Financial Statements


1 General information
Fastnet Oil & Gas plc (Fastnet or the Company) is a company incorporated in England and Wales. Details of the registered office, the
officers and advisers to the Company are presented on the Company Information page at the end of this report. The Companys offices
are in Manchester and Dublin. The Company is listed on the AIM market of the London Stock Exchange (ticker: FAST.L) and the Enterprise
Securities Market of the Irish Stock Exchange (ticker: FOI).
Fastnet was established following the reverse takeover by Terra Energy Limited of AIM listed Sterling Green Group plc (Sterling Green)
in June 2012. Sterling Green was subsequently renamed Fastnet Oil & Gas plc with Terra Energy Limited renamed Fastnet Oil and Gas
(Ireland) Limited. The principal activity of the Company is oil and gas exploration.
2 Accounting policies
Basis of preparation
The consolidated Financial Statements consolidate those of the Company and its subsidiaries (together the Group). The consolidated
Financial Statements of the Group and the individual Financial Statements of the Company have been prepared on the basis of the
recognition and measurement requirements of International Financial Reporting Standards (IFRS) and their interpretations issued by the
International Accounting Standards Board (IASB) as adopted by the EU and with those parts of the Companies Act 2006 applicable
to companies reporting under IFRS. The IFRS adopted by the EU as applied by the Company and the Group in the preparation of these
Financial Statements are those that were effective from 1 April 2012.
Consolidation
The consolidated Financial Statements comprise the Financial Statements of the Company and its subsidiaries for the year ended 31 March
2013, this being the reporting date of all entities within the Group. Subsidiaries are entities controlled by the Group. Control exists when
the Group has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its
activities. In accessing control, potential voting rights that are currently exercisable or convertible are taken into account. Subsidiaries are
fully consolidated from the date that control commences until the date that control ceases. Accounting policies of subsidiaries have been
changed where necessary to ensure consistency with the policies adopted by the Group. Intergroup balances and any unrealised gains or
losses or income or expenses arising from intergroup transactions are eliminated in preparing the consolidated Financial Statements.
Reverse asset acquisition
On 11 June 2012 Sterling Green Group plc (Sterling Green) acquired 100% of the issued share capital of Terra Energy Limited (Terra) in
a share for share transaction, and on the same date changed its name from Sterling Green to Fastnet Oil & Gas plc. Due to the relative size
of the companies, Terras shareholders became the majority shareholders of the enlarged share capital (before a share placing on the same
date). In addition, the Companys continuing operations and executive management became those of Terra.
As Sterling Green was an AIM quoted investing company with no assets other than the cash on its Statement of Financial Position on the
date of acquisition, under IFRS rules the acquisition constitutes a reverse asset acquisition of Sterling Green by Terra. It would normally be
necessary for the Groups consolidated Financial Statements to follow the legal form of the business combination with Terras results
from the acquisition date of 11 June 2012 consolidated into the Group results. In this case, the consolidated Financial Statements have
been treated as being a continuation of the Financial Statements of Terra with Sterling Green being treated for accounting purposes as
theacquired entity.
As the consolidated group results represent a continuation of the Financial Statements of the legal subsidiary, the assets and liabilities of
Terra have been recognised and measured in the consolidated results at their pre-combination carrying amounts. The retained earnings and
other equity balances recognised are the retained earnings and other equity balances of Terra immediately before the business combination
and the amount recognised as issued equity instruments has been determined by adding to the issued equity of Terra immediately before
the business combination the cost of the combination, being the value of notional shares issued by Terra. To comply with UK company law
adjustments have been made to the consolidated reserves to reflect the equity structure of the legal parent company.

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

33

2 Accounting policies continued


Comparative information
The comparative figures presented are those for Terra and relate to the 3 month period ended 31 March 2012. The prior year Financial
Statements for Terra were prepared on a 3 month basis to 31 March 2012 and therefore do not cover a comparable period to the current
period Financial Statements that have been prepared on a 12 month period basis. Terra was a start-up company in the prior period and
since its date of incorporation in February 2008. Due to the company being in an early stage of development it didnt incur significant
costs in the periods prior to the 3 month period ending on 31 March 2012. The Directors considered that including any additional periods
Statement of Comprehensive Income amounts on a pro-rata basis would not add to the comparability of the amounts being presented
and have therefore presented the Group comparatives as the 3 month period to 31 March 2012 of Terra.
Functional and presentation currency
IAS 21 The Effects of Changes in Foreign Exchange Rates, describes functional currency as the currency of the primary economic
environment in which an entity operates. Following the reverse asset acquisition in June 2012 the Company and subsidiaries have been
funded in Pounds Sterling (), alongside incurring costs in , Euro () and US Dollars ($). Having considered the aggregate effect of
all relevant factors, the Directors concluded that is the appropriate functional and presentational currency and the change was effective
from 1 April 2012. The functional currency of Terra had previously been Euro. Upon review of the movements in relevant exchange rates
in the prior period these were not considered to be significant, and balances and transactions have therefore been translated to at a rate
of 1:1.199, and as a result no foreign currency translation reserve has arisen on the translation. Values in the Financial Statements are
rounded to the nearest thousand (000) except where otherwise indicated.
Changes in accounting policies and disclosures
The accounting policies adopted are consistent with those of the previous financial year except as follows:
The Group has adopted the following new and amended IFRS and IFRIC interpretations as of 1 April 2012:
IFRS7 (amendment) Financial Instruments: Disclosures additional disclosures re transfers of financial assets, effective for reporting
periods beginning after 1 July 2011; and
IAS12 (amendment) Income Taxes recovery of deferred tax on investment properties, effective 1 January 2012.
The impact of adopting the above amendments had no material impact on the Financial Statements of the Group.

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

34

Fastnet Oil & Gas plc Annual Report 2013

Notes to the Financial Statements continued


2 Accounting policies continued
Standards issued but not yet effective
The following standards, amendments and interpretations applicable to the Group are in issue but are not yet effective and have not been
early adopted in these Financial Statements:
Application date
of Group

Reference

Title

Summary

Application date of standard

Amendments to
IAS34, IAS 32,
IAS16, IAS 1, IFRS 1
Amendments
toIFRS7

Amendments resulting
from Annual Improvements
2009-2011 Cycle
Amendments related to
the offsetting of assets
andliabilities
Financial Instruments

Amendments resulting from Annual


Improvements 2009-2011 Cycle

Annual periods beginning


on or after 1January 2013

1 April 2013

Guidance on offsetting of financial


assets and financial liabilities

Annual periods beginning


on or after 1January 2013

1 April 2013

Revised standard for accounting for


financial instruments
Replaces IAS 27 section that addressed
accounting for consolidated financial
statements. Establishes a singlecontrol
model applicableto all entities
Replaces IAS 31 Interests in
JointVentures
Increases disclosure requirements
in relation to an entitys interests
in subsidiaries, joint arrangements,
associates and structured entities
Guidance on how to measure fair value
when fair value is required or permitted
Presentation of items within other
comprehensive income
Revised standard for accounting for
employee benefits
Revised standard following issuance of
IFRS 10 and IFRS 12
Revised standard following issuance of
IFRS 11 and IFRS 12
Clarification on disclosures required for
Non-Financial Assets
Amendments for novations
ofderivatives

Periods commencing on
orafter 1 January 2015
Periods commencing on
orafter 1 January 2013

1 April 2015

Periods commencing on
orafter 1 January 2013
Periods commencing on
orafter 1 January 2013

1 April 2013

Periods commencing on
orafter 1 January 2013
Periods commencing on
orafter 1 July 2012
Periods commencing on
orafter 1 January 2013
Periods commencing on
orafter 1 January 2013
Periods commencing on
orafter 1 January 2013
Periods commencing on
orafter 1 January 2014
Periods commencing on
orafter 1 January 2014

1 April 2013

Guidance on when to recognise


a liability for a levy imposed by
agovernment

Periods commencing on
orafter 1 January 2014

IFRS 9
IFRS 10

Consolidated Financial
Statements

IFRS 11

Joint Arrangements

IFRS 12

Disclosure of Interests
inOther Entities

IFRS 13

Fair Value Measurement

Amendments to
IAS 1
Amendments to
IAS19
IAS 27 (revised)

Presentation of Financial
Statements
Employee Benefits

IAS 28 (revised)
IAS 36
IAS 39

IFRIC 21

Separate Financial
Statements
Investments in Associates
and Joint Ventures
Impairment of Assets
Financial Instruments:
Recognition and
Measurement
Levies

1 April 2013

1 April 2013

1 April 2013
1 April 2013
1 April 2013
1 April 2013
1 April 2014
1 April 2014

1 April 2014

The Directors anticipate that the adoption of these standards and the interpretations in future periods will have no material impact on the
Financial Statements of the Group.

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

35

2 Accounting policies continued


Principal accounting policies
The principal accounting policies are summarised below. They have been consistently applied throughout the period covered by the
Financial Statements.
Financial instruments
Financial instruments are classified on initial recognition as financial assets, financial liabilities or equity instruments in accordance with
the substance of the contractual arrangement. Financial instruments are recognised on the Statement of Financial Position at fair value
when the Company becomes party to the contractual provisions of the instrument. Financial assets are reduced by appropriate allowances
for estimated irrecoverable amounts. Interest earned from financial assets and interest paid on financial liabilities is recognised in the
Statement of Comprehensive Income on an accruals basis over the term of the financial asset or liability using the effective rate of interest.
Trade and other receivables are stated at their nominal value, as the interest that would be recognised from discounting future cash
receipts over the short credit period is not considered to be material.
Trade and other payables are stated at their original invoiced value, as the interest that would be recognised from discounting future cash
payments over the short term payment period is not considered material.
Earnings per share
The Group presents basic and diluted earnings per share (EPS) data for its Ordinary Shares. Basic EPS is calculated by dividing the profit
or loss attributable to Ordinary Shareholders of the Company by the weighted average number of Ordinary Shares outstanding during the
period. Diluted EPS is determined by adjusting the profit or loss attributable to Ordinary Shareholders and the weighted average number
of Ordinary Shares outstanding for the effects of all dilutive potential Ordinary Shares, which comprise warrants and share options granted
by the Company.
Cash and cash equivalents
Cash comprises cash on hand and bank balances. Cash equivalents are short-term, highly liquid investments that are readily convertible to
known amounts of cash, which are subject to an insignificant risk of changes in value and have a maturity of three months or less at the
date of acquisition.
Foreign currency translation
The Company translates foreign currency transactions into its functional currency, Pounds Sterling (), at the rate of exchange prevailing
at the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at
the rate of exchange prevailing at the Statement of Financial Position date. Exchange differences arising are taken to the Statement of
Comprehensive Income except those incurred on borrowings specifically allocable to development projects which are capitalised as part
ofthe cost of the asset.
Property, plant and equipment
Property, plant and equipment comprise computer equipment and furniture and fittings. Depreciated is charged at 25% per annum on
astraight line basis so as to write off the cost over four years.

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

36

Fastnet Oil & Gas plc Annual Report 2013

Notes to the Financial Statements continued


2 Accounting policies continued
Exploration and evaluation assets
Exploration and evaluation assets are measured using the cost method of recognition. Exploration and evaluation expenditure is capitalised
and recognised as an exploration and evaluation asset when the rights to an area of interest are current, the expenditures are expected to
be recouped through successful development and exploitation activities and the operations are current and have not reached such a stage
that a reasonable assessment of recoverable reserves can be made.
Exploration and evaluation expenditure includes; acquisition of rights to explore, researching, analysing and collating of historical data,
geological and geophysical costs, exploratory drilling, evaluation of technical feasibility and commercial viability and administrative and
general overheads related to an area of interest.
Farm-in and farm-out arrangements
The Group accounts for its expenditure under farm-in arrangements in the same way as directly incurred exploration and evaluation
expenditure.
Where consideration is received as part of a farm-out arrangement, the Group does not recognise any gain or loss but re-designates any
costs previously capitalised in relation to the whole interest as relating to the partial interest retained. Any cash consideration received
is credited against costs previously capitalised in relation to the whole interest with any excess accounted for as a gain on disposal. The
Group does not record any expenditure made by the farmee on its account.
Business combinations
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the
consideration transferred, measured at acquisition date fair value and the amount of any non-controlling interest in the acquiree. In
theconsolidated Financial Statements, acquisition costs incurred are expensed and included in general and administrative expenses.
Frequently, the acquisition of exploration licences is effected through a non-operating corporate structure. As these structures do
not represent a business, it is considered that the transactions do not meet the definition of a business combination. Accordingly the
transaction is accounted for as the acquisition of an asset. The net assets acquired are recognised at cost.
Investment in subsidiaries
Investments in subsidiaries are stated at cost less provision for any impairment in value.
Impairment
At each Statement of Financial Position date, the Company reviews the carrying amounts of its investments and exploration and evaluation
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. Where the asset does not generate
cash flows that are independent from other assets, the Company estimates the recoverable amount of the cash-generating unit to which
the asset belongs. An intangible asset with an indefinite useful life is tested for impairment annually and whenever there is an indication
that the asset may be impaired. Any impairment loss arising from the review is charged to the Statement of Comprehensive Income
whenever the carrying amount of the asset exceeds its recoverable amount.
Taxes
Income tax comprises current and deferred tax. Current tax is the expected tax payable on the taxable income for the year, using tax rates
enacted or substantially enacted at the reporting date. Deferred tax assets or liabilities are recognised where the carrying value of an asset
or liability in the Statement of Financial Position differs to its tax base, and is accounted for using the statement of financial liability method.
Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which the
difference can be utilised.

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

37

2 Accounting policies continued


Share based payments
The Group issues share options as an incentive to certain key management and staff. The fair value of options granted is recognised as
an expense with a corresponding credit to the share-based payment reserve. The fair value is measured at grant date and spread over
theperiod during which the awards vest.
For equity-settled share-based payment transactions, the goods or services received and the corresponding increase in equity are
measured directly at the fair value of the goods or services received, unless that fair value cannot be estimated reliably. If it is not possible
to estimate reliably the fair value of the goods or services received, the fair value of the equity instruments granted is used as a proxy. For
cash-settled share-based payments, a liability is recognised for the goods or services acquired, measured initially at the fair value of the
liability. At each reporting date until the liability is settled, and at the date of settlement, the fair value of the liability is remeasured, with
any changes in fair value recognised in profit or loss for the period.
The Group may issue warrants to key consultants, advisers and suppliers in payment or part payment for services or supplies provided to
the Group. The fair value of warrants granted is recognised as an expense with a corresponding credit to the share-based payment reserve.
The fair value is measured at grant date and spread over the period during which the warrants vest. The fair value is measured using the
Black-Scholes model if the fair value of the services received cannot be measured reliably.
Critical accounting judgements and key sources of estimation uncertainty
The preparation of Financial Statements in conformity with IFRS requires management to make estimates and judgements that affect
thereported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the period end and the
reportedamounts of revenues and expenses during the reporting period. Estimates and judgements are continually evaluated and are
based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the
circumstances. The following are areas that involve significant estimation, uncertainty and critical judgement in applying the Companys
accounting policies:
Tax provisions and recovery of deferred tax assets (see note 7)
Assessing the outcome of uncertain tax provisions requires judgements to be made regarding the result of negotiations with and enquiries
from tax authorities in a number of jurisdictions. The assessments made are based on the advice from independent tax advisers and the
status of on-going discussions with the relevant tax authorities.
Judgement is required in determining whether deferred tax assets are recognised on the Statement of Financial Position. Deferred tax assets,
including those arising from unutilised tax losses require management to assess the likelihood that the Group will generate taxable earnings
in future periods, in order to utilise recognised deferred tax assets. Estimates of future taxable income are based on forecast cash flows
from operations and the application of existing tax laws in each jurisdiction. To the extent that future cash flows and taxable income differ
significantly from estimates, the ability of the Group to realise the net deferred tax assets recorded at the reporting date could be impacted.
Additionally, future changes in tax laws in the jurisdictions in which the Group operates could limit the ability of the Group to obtain tax
deductions in future periods.
Exploration and evaluation expenditure (see note 9)
The application of the Companys accounting policy for exploration and evaluation expenditure requires judgement in determining
whether it is likely that future economic benefits are likely either from future exploration or sale or where activities have not reached
astage which permits a reasonable assessment of the existence of reserves. The deferral policy requires management to make certain
estimates and assumptions about future events or circumstances, in particular whether an economically viable extraction operation can
be established. Estimates and assumptions made may change if new information becomes available. If, after expenditure is capitalised,
information becomes available suggesting that the recovery of expenditure is unlikely, the amount capitalised is written off in the
Statement of Comprehensive Income in the period when the new information becomes available.

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

38

Fastnet Oil & Gas plc Annual Report 2013

Notes to the Financial Statements continued


2 Accounting policies continued
Impairment of assets (see note 9 & 12)
The Group assesses each cash-generating unit annually to determine whether any indication of impairment exists. Where an indicator of
impairment exists, a formal estimate of the recoverable amount is made, which is considered to be the higher of the fair value less costs
to sell and value in use. These assessments require the use of estimates and assumptions such as long-term commodity prices, discount
rates, future capital requirements, exploration potential and operating performance. Fair value is determined as the amount that would be
obtained from the sale of the asset in an arms length transaction between knowledgeable and willing parties. Fair value for mineral assets
is generally determined as the present value of estimated future cash flows arising from the continued use of the asset, which includes
estimates such as the cost of future expansion plans and eventual disposal, using assumptions that an independent market participant may
take into account. Cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset. Management has assessed its cash generating units as being an individual
operating site, which is the lowest level for which cash inflows are largely independent of those of other assets.
Fair value of Royalty Deed (see note 10)
The Group determines the fair value of financial instruments that are not quoted using valuation techniques and models which are
significantly affected by the assumptions used. In that regard, the derived fair value estimates cannot always be substantiated by
comparison with independent markets and, in many cases, may not be capable of being realised immediately. The methods and
assumptions applied, and valuations models used are disclosed in notes 10.
Measurement of share based payments (see note 17)
The fair value of share based payments recognised in the Statement of Comprehensive Income is measured by use of valuation models,
which take into account conditions attached to the vesting and exercise of the equity instruments. The expected life used in the model is
adjusted; based on managements best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.
The share price volatility percentage factor used in the calculation is based on managements best estimate of future share price behaviour
and is selected based on past experience, future expectations and benchmarked against peer companies in the industry.
The preparation of the consolidated Financial Statements requires management to make estimates and assumptions concerning the future
that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the Financial
Statements and the reported amounts of revenues and expenses during the reporting periods. The resulting accounting estimates will, by
definition, differ from the related actual results.

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

39

3 Segmental information
In the opinion of the Directors the Group has one class of business, being oil and gas exploration.
The Groups primary reporting format is determined by the geographical segment according to the location of the exploration asset. There
are currently two geographic reporting segments: UK & Ireland, and Morocco. The geographical segment UK & Ireland includes the costs
of the Company head office.
Segment information of the business is presented below:
12 months to 31 March 2013
UK & Ireland
000

Income Statement
Revenue
General and administrative costs
Reverse asset and other acquisition costs
Other operating income
Share based payment
Operating loss
Finance revenue
Net foreign exchange gain
Loss before taxation
Assets and Liabilities
Segment Assets
Segment Liabilities

Morocco
000

3 months to 31 March 2012


Total
000

UK & Ireland
000

Morocco
000

Total
000

(898)
(1,087)

(258)
(2,243)
207
747
(1,289)

(72)

(67)
3
(41)
(105)

(970)
(1,087)
5
(258)
(2,310)
210
706
(1,394)

(73)

(73)
3

(70)

(73)

(73)
3

(70)

22,295
(410)
21,885

6,439
(144)
6,295

28,734
(554)
28,180

732
(95)
637

732
(95)
637

4 Loss for the period


Group

Loss for the period is stated after charging:


Fees payable to the Companys auditor for audit of the Companys annual
accounts
Fees payable to the Companys auditor and its associates for other services:
The audit of the Companys subsidiaries pursuant to legislation
Tax compliance services
Assurance services on corporate finance transactions
Audit-related assurance services
Depreciation of property, plant and equipment

Company

12 months to
31 March
2013
000

3 months to
31 March
2012
000

12 months to
31 March
2013
000

12 months to
31 March
2012
000

14

14
5
25
5
3

5
25
5

3
25

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

40

Fastnet Oil & Gas plc Annual Report 2013

Notes to the Financial Statements continued


5 Employees
In addition to the Directors (details of numbers are contained in the Directors Report), the average number of employees during the
period was 1 (2012: 1).
Aggregate remuneration comprised:
Group

Other wages and salaries


Social security costs
Directors remuneration
Share based payments Directors
Total employee costs

Company

12 months to
31 March
2013
000

3 months to
31 March
2012
000

12 months to
31 March
2013
000

12 months to
31 March
2012
000

20
6
164
174
364

5
1
16

22

20
6
161
178
365

11
4
63

78

12 months to
31 March
2013
000

3 months to
31 March
2012
000

210

6 Finance income

Bank interest received


7 Tax on ordinary activities
No UK Corporation Tax charge arises in the year ended 31 March 2013.

A reconciliation of the expected tax benefit computed by applying the tax rate applicable in the primary jurisdiction to the loss before tax
to the actual tax (credit)/expense is as follows:
12 months to
31 March
2013
000

Loss before tax on continuing operations


Tax credit at UK corporation tax rate of 23% (24%)
Effect of:
Losses unutilised
Expenses not deductible for tax purposes
Differences in overseas taxation rates
Total tax charge on loss on ordinary activities

3 months to
31 March
2012
000

(1,394)
(321)

(70)
(17)

28
248
45

The Group has tax losses of 350,000 (2012: 240,000) to carry forward against future profits. The deferred tax asset on these tax losses
at 23% of 80,000 (2012: 58,000) has not been recognised due to the uncertainty of the recovery.

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

41

8 Loss per share basic and diluted


In the current year the denominator in the Earnings/loss per share (EPS) calculation is derived by separately calculating and then
combining the weighted average number of shares for the period post acquisition and the weighted average number of shares for the
period post acquisition.
Calculation of EPS
Weighted average number of shares for the period pre-acquisition (1 April 2012 to 11 June 2012): weighted average number of shares in
issue in Terra Energy Limited (Terra) for the period pre-acquisition multiplied by the exchange ratio (32.28:1) of Sterling Green Group plc
shares received by Terra shareholders as part of the acquisition and divided by the consolidation ratio (38:1) of shares in the enlarged share
group. Result of calculation = 64,124,957.
Weighted average number of shares for the period post acquisition (12 June 2012 to 31 March 2013): weighted average number of shares
in issue for Fastnet Oil & Gas plc for the period post acquisition. Result of calculation = 129,920,893.
The comparative EPS figure is based on Terras reported loss for the period divided by the weighted average number of shares in issue
in Terra for the period multiplied by the exchange ratio (32.28:1) and divided by the consolidation ratio (38:1). Result of calculation =
54,604,467.
Issued share capital Ordinary Shares of 0.038 each
Number of
shares

31 December 2011
Issue of shares by Terra Energy Limited
31 March 2012
Issue of shares by Terra Energy Limited
Share for share exchange on acquisition of Terra Energy Limited
Share placing and consolidation
Issue of shares by Fastnet Oil & Gas plc
31 March 2013

Weighted
average
shares

52,931,274 38,649,890
11,113,394
64,044,668 54,604,467
84,943
(64,129,611)
163,030,160
110,910,333
273,940,493 194,045,850

The calculation of loss per share is based on the following:


12 months to
31 March
2013

Loss after tax attributable to equity holders of the parent (000)


Weighted average number of Ordinary Shares in issue
Fully diluted average number of Ordinary Shares in issue
Basic and diluted loss per share (pence)

(1,394)
194,045,850
194,045,850
(0.72)

3 months to
31 March
2012

(70)
54,604,467
54,604,467
(0.13)

Where a loss has occurred, basic and diluted EPS are the same because the outstanding share options and warrants are anti-dilutive.
Accordingly, diluted EPS equals the basic EPS. The share options and warrants outstanding as at 31 March 2013 totalled 15,345,628 and
are potentially dilutive.

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

42

Fastnet Oil & Gas plc Annual Report 2013

Notes to the Financial Statements continued


9 Exploration and evaluation assets

Cost
At 1 January 2012
Additions
At 31 March 2012
Carrying value
Cost
At 1 April 2012
Acquisition of Pathfinder Hydrocarbon Ventures Limited
Additions
At 31 March 2013
Carrying value

Offshore
Morocco
000

Offshore
Ireland
000

Total
000

5,449
795
6,244
6,244

1,673
1,673
1,673

5,449
2,468
7,917
7,917

10 Business combinations and asset acquisitions


The Terra Energy Limited/Sterling Green Group plc transaction
As detailed in note 2 the acquisition by Sterling Green of Terra has been treated for accounting purposes as a reverse asset acquisition by
Terra of Sterling Green. In a reverse asset acquisition, the cost of the business combination is deemed to have been incurred by the legal
subsidiary in the form of notional equity instruments issued to the owners of the legal parent. The value of the notional shares is calculated
by reference to the proportion of shares that would be needed to be issued by Terra to Sterling Green if the old shareholder base of
Sterling Green was to acquire the same percentage holding in Terra as it received in the combined Group.
The value of these notional shares issued by Terra was compared to the Net Asset value of Sterling Green on the date of acquisition
andthe excess (809,000) was charged to the Statement of Comprehensive Income as a deemed cost of the business combination.
In addition, 278,000 in professional fees was charged to the Statement of Comprehensive Income in the current period as part of
thecosts associated with the reverse asset acquisition and acquisition of Pathfinder Hydrocarbon Ventures Limited (see details below).
These costs include legal, due diligence, accounting and tax advisory and corporate finance.
Acquisition of Pathfinder Hydrocarbon Ventures limited
On 17 July 2012 Fastnet acquired the entire issued share capital of Pathfinder Hydrocarbon Ventures Limited (Pathfinder) from
Pan Maghreb Oil and Gas Limited (PMOG, formerly Pathfinder Energy Maghreb plc) for an initial consideration of US$8.0 million
(5,123,000). The consideration was satisfied by the payment of US$1.0 million (647,000) in cash and by the issue of 40,688,212
new Ordinary Shares in the capital of the Company at a price of 11 pence per Ordinary Share. Additional contingent consideration of
US$1.0million is payable on the condition that Pathfinder receives payment from Kosmos Energy Deepwater Morocco (KEDM), a wholly
owned subsidiary of Kosmos Energy Limited (Kosmos), of US$1.0 million receivable by Pathfinder under a farm-out agreement between
the parties this payment was made in October 2012, following the issuance of a Joint Ministerial Order by the Moroccan Government
granting approval of the farm-down.

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

43

10 Business combinations and asset acquisitions continued


Assets acquired and liabilities assumed:
At date of
acquisition
000

Assets
Exploration and evaluation assets
Cash and cash equivalents
Trade and other receivables
Total assets

5,449
630
647
6,726

Liabilities
Non-current liabilities
Other non-current loans
Total non-current liabilities

678
678

Current liabilities
Accounts payable and accrued liabilities
Total current liabilities
Total liabilities

300
300
978

Total net assets

5,748

Consideration
Issue of 40,688,212 fully paid Ordinary Shares
Cash consideration
Contingent consideration
Total consideration

4,476
647
625
5,748

Results for the period


Pathfinder prepares Financial Statements to the 31 March each year. Its most recent financial year was for the 15 month period
to 31March 2013. During that period the company recorded a loss of 258,000. During the period from the date of acquisition
(17July2012) to 31 March 2013, Pathfinder recorded a loss of 104,000.

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

44

Fastnet Oil & Gas plc Annual Report 2013

Notes to the Financial Statements continued


10 Business combinations and asset acquisitions continued
Royalty Deed
Prior to the acquisition of Pathfinder, PMOG entered into a royalty deed with its subsidiary, Pathfinder, pursuant to which, in consideration
of PMOG undertaking to discharge amounts due to directors and contractors of Pathfinder and certain third party liabilities, Pathfinder
granted a royalty interest to PMOG in relation to sales of oil and gas from the Foum Assaka licence area.
Salient features of the Royalty Deed are:
US$5 million single cash payment to PMOG after receipt of funds from the first commercial hydrocarbon sale in the Foum Assaka
Petroleum Agreement Area,
1% of gross revenues from oil and gas sales up until recovery of development costs and after Moroccan royalties and transport costs,
3% of gross revenues from oil and gas sales after recovery of development costs and after Moroccan royalties and transport costs,
The Royalty Deed applies to each and every oil and/or gas accumulation developed through the submission of a separate Plan of
Development for each Exploitation Concession.
Due to the uncertainty in relation to the underlying economic and commercial triggers that give rise to payments under the terms of
the Royalty Deed a fair value calculation was performed using the value of the liabilities discharged by PMOG as the starting point.
Following the completion of the valuation exercise no monetary value has been attributed to the Royalty Deed at the date of acquisition
ofPathfinder or at the year end. The Group will review the valuation of the Royalty Deed at each Statement of Financial Position date.
11 Property, plant and equipment
Total
000

Cost
At 1 January 2012
Additions
At 31 March 2012
Accumulated depreciation
At 1 January 2012
Depreciation charge
At 31 March 2012
Net book value
Cost
At 1 April 2012
Additions
At 31 March 2013
Accumulated depreciation
At 1 April 2013
Depreciation charge
At 31 March 2013
Net book value

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

1
1
1
2
10
12
1
3
4
8

45

12 Investment in subsidiaries
Equity in
subsidiary
companies
000

Funding for
exploration
activities
000

Total
000

12,977
12,977

1,988
1,988

14,965
14,965

12,977

1,988

14,965

Activities

Incorporation

% holding
31 March
2013

% holding
31 March
2012

Oil and Gas Exploration


Oil and Gas Exploration
Dormant

Jersey
Ireland
England and Wales

100
100
100

100

Cost
At 1 January 2012
Additions in the year
At 31 March 2012
Additions in the year
At 31 March 2013
Impairment
At 1 January 2012
At 31 March 2012 and 31 March 2013
Carrying value
At 31 March 2012
At 31 March 2013
List of Subsidiary Companies

Subsidiary Company

Pathfinder Hydrocarbon Ventures Limited


Fastnet Oil and Gas (Ireland) Limited
Sterling Green Commercial Finance Limited

Sterling Green Commercial Finance as a dormant company is exempt from statutory audit.
13 Trade and other receivables
Group

Prepayments and accrued income


VAT recoverable
Unpaid share capital
Trade and other receivables

Company

31 March
2013
000

31 March
2012
000

31 March
2013
000

31 March
2012
000

60
13

73

2
4
79
85

57
4

61

287

287

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

46

Fastnet Oil & Gas plc Annual Report 2013

Notes to the Financial Statements continued


14 Cash and cash equivalents
Group

Bank deposit accounts


Bank current accounts
Cash and cash equivalents

Company

31 March
2013
000

31 March
2012
000

31 March
2013
000

31 March
2012
000

17,732
3,004
20,736

586
60
646

17,521
2,852
20,373

149
149

The Group balance includes guaranteed funds held with Barclays Bank plc totalling 168,000 (US$250,000) at 31 March 2013. The
guarantee is in place in accordance with the Foum Assaka Petroleum agreement.
No notice is required to access funds held in deposit accounts.
15 Share capitalCompany
Issued share capital Ordinary Shares
Number of shares

1 April 2011 and 1 April 2012


Share consolidation and subdivision
Share consolidation and subdivision
Share for share exchange on acquisition of Terra Energy Limited
Issue of shares by Fastnet Oil & Gas plc
31 March 2013

303,675,390
(303,675,390)
7,991,458
64,129,611
201,819,424
273,940,493

Par Value

0.001 each
0.001 each
0.038 each
0.038 each
0.038 each
0.038 each

Total Value
000

304
(304)
304
2,437
7,669
10,410

Share consolidation and acquisition of Terra Energy Limited


On 11 June 2012, the Company effected a reorganisation of the existing share capital whereby each holding of 38 existing Ordinary
Shares(par value 0.001), were consolidated into one new Ordinary Share (par value 0.038). This resulted in the issue of 7,991,458
newOrdinary Shares. On the same date, 64,129,611 Ordinary Shares were issued on the acquisition of 100% of the issued share capital
ofTerra Energy Limited.
Issue of Shares during the year
On 11 June 2012, 90,909,091 new Ordinary Shares of 0.038 each were issued at 0.11 per share by way of share placing. The cash
consideration received by the Company was 10,000,000 before fees and commission. Total costs associated with the share placing
amounted to 705,000, these costs have been deducted from share premium.
On 19 June 2012, 1,777,697 new Ordinary Shares of 0.038 each were issued at par value to Paul Griffiths following the successful awards
of the licensing options covering certain blocks in the Molly Malone and Mizzen Basins in the Celtic Sea offshore Ireland. The issue of the
shares was pursuant to the agreement entered into between the Company and Petro-Celtex Consultancy Limited dated 14 May 2012.
Petro-Celtex Consultancy Limited is 100% owned and controlled by Paul Griffiths.
On 18 July 2012, 40,688,212 new Ordinary Shares of 0.038 each were issued at 0.11 per share in part consideration for the acquisition
of 100% of the issued share capital of Pathfinder Hydrocarbon Ventures Limited from Pan Maghreb Oil and Gas Limited.
On 30 July 2012, 444,424 new Ordinary Shares of 0.038 each were issued at par following the exercise of share options.
On 12 December 2012, 68,000,000 new Ordinary Shares of 0.038 each were issued at 0.22 per share by way of share placing. The
cash consideration received by the Company was 14,960,000 before fees and commission. Total costs associated with the share placing
amounted to 848,000, these costs have been included in share premium.

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

47

16 Statement of Comprehensive IncomeCompany


In accordance with the provisions of the Companies Act 2006, the Company has not presented a Statement of Comprehensive Income.
The Companys loss for the year was 223,000 (12 months to 31 March 2012: 516,000).
17 Share-based payments
The Company has issued share options as an incentive to certain key management and staff. In addition the Company has issued warrants
to key consultants, advisers and suppliers in payment or part payment for services or supplies provided to the Group. Apart from the Share
Appreciation Rights described below, each share option and warrant converts into one Ordinary Share of Fastnet Oil & Gas plc on exercise
and are accounted for as equity-settled share-based payments. No amounts are paid or payable by the recipient and the options and
warrants may be exercised at any time from the date of vesting to the date of their expiry. The equity instruments granted carry neither
rights to dividends nor voting rights.
Share options and warrants in issue:
Share Options

Units

Balance at 1 April 2012


Granted during the year
Exercised during the year
Lapsed during the year
Balance at 31 March 2013
Exercisable at 31 March 2013

427,630
10,372,121
(444,424)

10,355,327
6,299,751

Weighted
average
exercise price

3.8p
17.5p
3.8p

17.6p
11.2p

Warrants

Units

Weighted
average
exercise price

6,767,998

(1,777,697)
4,990,301
4,990,301

15.8p

14.1p
16.4p
16.4p

The fair value is estimated at the date of grant using the Black-Scholes pricing model, taking into account the terms and conditions
attached to the grant. The following are the inputs to the model for the equity instruments granted during the year:
Share Options
Ranges

Expected life in days


Volatility
Risk free interest rate

Warrants
Ranges

365-1,460 1,095-1,825
61%-80%
60%-80%
0.71%-1.14% 0.65%-0.9%

During the year a total of 10,372,121 share options exercisable at a weighted average price of 0.175 were granted. The fair value of
share options granted during the year was 860,000. The share options outstanding as at 31 March 2013 have a weighted remaining
contractual life of 2.7 years with exercise prices ranging from 0.038 to 0.26.
During the year a total of 6,767,998 warrants exercisable at a weighted average price of 0.158 were granted. The fair value of warrants
granted during the year was 521,000. The warrants outstanding as at 31 March 2013 have a weighted remaining contractual life of
3years with exercise prices ranging from 0.11 to 0.22.

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

48

Fastnet Oil & Gas plc Annual Report 2013

Notes to the Financial Statements continued


17 Share-based payments continued
The value of share options and warrants charged to the Statement of Comprehensive Income during the year is as follows:
Group

Share options
Warrants
Share appreciation rights
Total

Company

12 months to
31 March
2013
000

3 months to
31 March
2012
000

12 months to
31 March
2013
000

12 months to
31 March
2012
000

151

107
258

159

111
270

In addition to the above charges, share-based payments of 254,000 (related to warrants) were charged to share premium in the period.
Share Appreciation Rights
The Company issued Share Appreciation Rights (SAR) to a non-executive Director that require the Company to pay the intrinsic value of
the SAR to the Director at the date of exercise. To vest, the Fastnet Oil & Gas plc share price must show at least a 25% compound annual
growth from the award price (0.052) over the three years from the grant date. The Company has recorded a liability of 111,000 in the
current year. Fair value of the SAR is estimated by using a Monte-Carlo simulation model, which is rerun at each Statement of Financial
Position date. The fair value of the SAR at 31 March 2013 is 364,000.
Inputs to the Monte-Carlo simulation are detailed below:
Expected life in days
Volatility
Risk free interest rate

774
61%
0.92%

18 Trade and other payables


Group

Trade payables
Accrued expenses
Social security costs and other taxes
Trade and other payables

Company

31 March
2013
000

31 March
2012
000

31 March
2013
000

31 March
2012
000

216
221
6
443

79
15
1
95

47
185

232

6
266
2
274

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

49

19 Related party transactions


Key management are those persons having authority and responsibility for planning, controlling and directing the activities of the
Company. In the opinion of the Board, the Companys key management are the Directors of Fastnet Oil & Gas plc.
Amounts included in the Financial Statements, in aggregate, by category of related party are as follows:
Group

Directors

Directors remuneration
Share based payments
Consulting fees
Office facilities and administration
Other fees
Total

Company

12 months to
31 March
2013
000

3 months to
31 March
2012
000

12 months to
31 March
2013
000

12 months to
31 March
2012
000

164
174
100
6
66
510

16

6
1

23

161
178
75
6
66
486

63

10

73

20 Financial risk management


The Groups operations expose it to some financial risks arising from its use of financial instruments, the most significant ones being
liquidity, market risk and credit risk. The Board of Directors is responsible for the Companys risk management policies and whilst retaining
responsibility for them it has delegated the authority for designing and operating processes that ensure the effective implementation of
the objectives and policies to the Groups finance function. The main policies for managing these risks are as follows:
Liquidity risk
The Groups objectives when managing capital are to safeguard the ability to continue as a going concern in order to provide returns for
shareholders and benefits to other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. Working capital
forecasts are prepared to ensure the Group has sufficient funds to complete contracted work commitments.
Market risk
Market risk arises from the use of interest bearing financial instruments and represents the risk that future cash flows of a financial
instrument will fluctuate as a result of changes in interest rates. It is the Companys policy to ensure that it enters into local transactions
inits functional currency whenever possible and to maintain the majority of cash balances in the functional currency of the Company.
TheCompany considers this policy minimises any unnecessary foreign exchange exposure. In order to monitor the continuing effectiveness
of this policy the Board reviews the currency profile of cash balances and managements accounts.
During the year, the Group earned interest on its interest bearing financial assets at rates between 0.1% and 2.75%. The effect of a 1%
change in interest rates obtainable during the year on cash and on short-term deposits would be to increase or decrease the Group loss
before tax by 115,000.
In addition to cash balance maintained in pounds sterling, the Group had balances in US Dollars and EURO at year-end. A theoretical 5%
adverse movement in the year end GBP:USD exchange rate would lead to an increase in the Group loss before tax by 627,000 with a
corresponding reduction in the group loss before tax with a 5% favourable movement. A theoretical 5% adverse movement in GBP:EURO
exchange rates would lead to an increase in the Group loss before tax by 7,000 with a corresponding reduction in the group loss before
tax with a 5% favourable movement.

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

50

Fastnet Oil & Gas plc Annual Report 2013

Notes to the Financial Statements continued


20 Financial risk management continued
Credit risk
Credit risk is the risk that the counterparty will default on its contractual obligations resulting in financial loss. Credit risk arises from cash
and cash equivalents and from exposure via deposits with the Companys bankers. For cash and cash equivalents, the Company only uses
recognised banks with high credit ratings.
Categories of Company financial instruments
Group

Financial assets:
Cash and cash equivalents
Total financial assets
Financial liabilities:
Trade and other payables
Total financial liabilities
Net

Company

31 March
2013
000

31 March
2012
000

31 March
2013
000

31 March
2012
000

20,736
20,736

646
646

20,373
20,373

149
149

(443)
(443)
20,293

(95)
(95)
551

(232)
(232)
20,141

(272)
(272)
(123)

All financial assets are categorised as loans and receivables and all financial liabilities are categorised as financial liabilities measured at
amortised cost. The amortised cost of all financial assets and liabilities shown above is considered to also be the fair value of the Groups
and the Companys assets and liabilities.

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

51

21 Capital commitments
Fastnet has obligations to carry out agreed work programmes under the terms of award on its oil and gas licensing authorisations.
Commitments on the Groups Moroccan assets and in relation to the offshore Ireland 3D seismic survey are detailed below. In addition,
the Group has other less material minimum obligations under licensing options offshore Ireland.
Foum Assaka Petroleum Agreement
Fastnets wholly owned subsidiary, Pathfinder, is currently in the Initial Exploration Period of the licence, which runs for 2 years from
1July 2011. The exploration phase may be extended to July 2019 upon election by the partners. The first extension period runs for
2years and includes a commitment to drill an exploration well during the term. The Company expects drilling on the most prospective
targets during first half 2014. On entering the Initial Extension Period a bank guarantee of US$5 million needs to be provided (US$12 million
in the event that a drilling contact is not provided). Fastnet has a 25% paying interest in the Foum Assaka Petroleum Agreement.
Tendrara Lakbir
Subsequent to year end, in May 2013, Fastnet through its wholly owned subsidiary Pathfinder Hydrocarbon Ventures Limited
(Pathfinder), executed an exclusive option agreement (the Option Agreement) with Oil and Gas Investments Funds (OGIF) to farmin
to eight Exploration Blocks comprising the Tendrara Lakbir Petroleum Agreement (the Tendrara Lakbir Licence) onshore Morocco. The
entrance fee payable to OGIF on execution of the option agreement was US$300,000 (197,250). Under the Agreement, Pathfinder has
the option to pay 100% of the cost to drill, test and complete an appraisal/pre-development well on or before 28 February 2014. Upon
completion of the well OGIF shall transfer on or before 30 September 2014 a Gross interest of 50% (a net interest of 37.5% after including
the ONHYM carry through exploration of 25%) in the Tendrara Lakbir Licence to Pathfinder. Pathfinder shall assume theoperatorship
under the terms of the Petroleum Agreement and Association Contract, subject to all regulatory approvals being received. Upon the
completion of the well and the closing of the transfer of equity interest in the Tendrara Licence, Pathfinder shall provideOGIF with a
US$2.75 million irrevocable bank guarantee, which shall be returned to Pathfinder by OGIF upon completion of afurther work programme
whereby Pathfinder shall pay the costs of drilling two additional appraisal/pre-development wells by 1st April2015 and 1st April 2018.
Offshore Ireland 3D Seismic Programme
The Company began tendering for a seismic vessel in Q1-2013 and following the award of the 3D seismic contract to CGG Veritas the
seismic programme commenced in April 2013. In June 2013 the 3D seismic programme concluded with 1,910 km2 of 3D seismic acquired
for US$19 million (12,492,000).
22 Events after the reporting period
On 3 May 2013, Fastnet announced that it had been awarded Licensing Option 13/3 over part blocks 56/6, 56/7, 56/8, 56/9, 56/11, 56/12,
56/13 and 56/14 in the Mizzen Basin (East Mizzen) and the western end of the North Celtic Sea Basin, offshore Ireland (East Mizzen
Licensing Option). The newly named East Mizzen Licensing Option is valid from 1 May 2013 until 30 September 2014. It covers an area of
1,155 sq. km., and is contiguous with and extending eastwards from the previously awarded Mizzen Licensing Option 12/3, announced on
12 June 2012. Fastnet is the designated operator and has a 100% working interest in the East Mizzen Licensing Option.
On 29 May 2013, Fastnet announced that through its wholly owned subsidiary Pathfinder Hydrocarbon Ventures Limited (Pathfinder) it
has executed an exclusive option agreement (the Option Agreement) with Oil and Gas Investments Funds (OGIF) for a farm-in to eight
Exploration Blocks comprising the Tendrara Lakbir Petroleum Agreement (the Tendrara Lakbir Licence) onshore Morocco. The Tendrara
Lakbir Licence covers an area of 14,548 sq. km. It covers the majority of the Tendrara Basin, which lies between the Middle Atlas to the
north and the High Atlas to the south.

Fastnet Oil & Gas plc (formerly Sterling Green Group plc) Financial Statements for the year ended 31 March 2013

52

Fastnet Oil & Gas plc Annual Report 2013

Company Information
Registered office

Number 14
The Embankment
Vale Road
Heaton Mersey
Stockport
Cheshire SK4 3GN

Company number

5316808

Directors

Cathal Friel Executive Chairman


Paul Griffiths Managing Director
Carol Law Executive Director
Stephen Staley Non-executive Director
Michael Nolan Non-executive Director
Michael Edelson Non-executive Director

ESM Adviser and


JointBroker

Davy Stockbrokers
Davy House
49 Dawson Street
Dublin 2

Auditors

BDO LLP
3 Hardman Street
Spinningfields
Manchester M3 3AT

Banker

Allied Irish Bank (GB)


Vantage Point
Hardman Street
Manchester M3 3PL
Allied Irish Bank
Ashford House
Tara Street
Dublin 2

Company Secretary Alan Mooney


Company Website

www.fastnetoilandgas.com

AIM Nominated
Adviser

Shore Capital and Corporate Limited


Bond Street House
14 Clifford Street
London W1S 4JU

Joint Broker

Joint Broker

Shore Capital Stockbrokers Limited


Bond Street House
14 Clifford Street
London W1S 4JU
Mirabaud Securities LLP
21 St Jamess Square
London, SW1Y 4JP

Solicitors

Kuits Steinart Levy LLP


3 St Marys Parsonage
Manchester M3 2RD
Mason Hayes+Curran
South Bank House
Barrow Street
Dublin 4

Registrars

Capita Registrars Limited


The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU

Produced by Frontier Communications.

Fastnet Oil & Gas plc


14 The Embankment
Vale Road
Heaton Mersey
Stockport
Cheshire SK4 3GN
Tel: +44 203 415 5730
www.fastnetoilandgas.com