Fastnet Oil and Gas has acquired the entire issued share capital of Pathfinder Hydrocarbon Ventures from its parent company, Pathfinder Energy Maghreb, for $8m.
Prior to the acquisition, Pathfinder and PEMP entered into a royalty agreement in relation to the Foum Assaka licence area, under which Pathfinder will pay PEMP a one percent royalty of the gross amount recovered from sales of oil and gas from the licence area.
Fasnet will pay $1m in cash and issue 40.6 million new ordinary shares for the capital and an additional contingent consideration of $1m is payable, on the condition that Pathfinder receives payment from Kosmos Energy Deepwater Morocco, the operator of the licence.
The acquisition will provide the company will an 18.75% stake in the Foum Assaka Offshore Petroleum Agreement and Exploration Permits within the Agadir Basin covering an area of 6,500 square kilometres.
Steve Staley, Fastnet Oil and Gas CEO, said: "We are pleased that we will be working with Kosmos and will benefit from the tremendous experience they have gained through discovering and quickly bringing into production the Jubilee Field offshore Ghana - a field which shares similar geology to the acreage in the offshore block we are acquiring today. I look forward to updating shareholders as to progress."
The company also has a 12 month option to take a 50% participating interest in the Merada (Onshore) Petroleum Agreement.
The Foum Assaka Offshore Petroleum Agreement includes Foum Assaka I, II, III and IV.