Exploration group Fastnet will use the €18 million it raised yesterday to pay for planned projects in Morocco and the Celtic Sea next year.

The company said it had raised £14.96 million (€18.6 million) through the placing of 68,000,000 new shares in the company at 22 pence a unit.

Fastnet plans to begin drilling onshore and offshore in Morocco next year with its partner, Kosmos.

Chairman Cathal Friel said yesterday’s fundraising meant that the company now had the cash required for those operations and for further work on its licence area in the Celtic Sea, off the Irish south coast.

The offer was oversubscribed and the company got a better price for its new shares than it originally expected. Buyers included new and existing shareholders, with a number of specialist oil and gas investment funds choosing to come on board this time.

Mr Friel said yesterday that having such shareholders could be useful for the company.

Fastnet’s shares closed 4 pence down at 23 pence in London yesterday, but traded at a premium to the placement price throughout the day.