Fastnet Oil and Gas was notified by the Petroleum Affairs Division of the Irish Department of Communications, Energy and Natural Resources that it has been awarded licensing options over Block 50/26 and part blocks 49/25, 49/30, 50/21 and 50/22 in the Molly Malone Basin, North Celtic Sea; and blocks 55/14 and 55/15 and part blocks 55/9 and 55/10 in the Mizzen Basin, South Celtic Sea.

The Molly Malone Basin is within the Celtic Sea Basin in water depths of up to 100 m (328 ft). The licensing option covers Block 50/26 and part blocks 49/25, 49/30, 50/21 and 50/22 in the North Celtic Sea Basin.

The company believes that this basin offers an opportunity to develop an exploration concept incorporating all the elements of a working petroleum system tested in adjacent areas offshore southeast Ireland, such as the Fastnet Basin, and onshore England, such as the Wessex Basin. The directors of the company estimate that the license area could contain in-place resources of as much as 1.0 billion barrels of oil.

Currently, there are no wells in the application area and there is only sparse 2D seismic coverage available. Fastnet has been awarded an 18-month licensing option. During that period, the board, in accordance with the minimum phase 1 work program, intends to purchase, reprocess and interpret some of the existing 2D seismic data, undertake regional seismic correlation work and to refine the model of the petroleum system. Subject to results, Fastnet would move to acquire 3D seismic data.

The Mizzen Basin is within the Celtic Sea Basin in water depths of up to 160 m (534 ft). The licensing option covers blocks 55/14 and 55/15 and part blocks 55/9 and 55/10 in the South Celtic Sea basin.

The board believes that the basin offers an opportunity to develop a play incorporating all the elements of a working petroleum system tested in adjacent areas offshore Ireland and in the analogous basins offshore eastern Canada. The board also believes that this license area could host in-place resources of as much as 1.0 billion barrels of oil equivalent.

Currently, there are no wells in the application area but there is 2D seismic coverage, albeit requiring reprocessing. Fastnet has been awarded an 18-month licensing option. In accordance with the minimum Phase 1 work program, during that period the board's initial intention is to purchase, reprocess and interpret some of the existing 2D seismic data, generate regional seismic ties and refine the model of the petroleum system. Subject to results, Fastnet would move to acquire 3D seismic data.

The company has countersigned the licensing option agreements and submitted them to the Petroleum Affairs Division of the Irish Department of Communications, Energy and Natural Resources along with its application for a petroleum prospecting license.