Loss of £1.5m at Fastnet primarily due to cost of floating in London

Newly floated explorer Fastnet Oil & Gas lost £1.5 million in the first six months of its financial year, according to figures released yesterday.

The company is at an early stage of developing oil and gas exploration licences off Morocco and Ireland, and is currently generating no revenues.

Figures for the six months to September 30th show that the company booked a £1.5 million loss for the period. This was primarily associated with the cost of floating on London’s Alternative Investment Market in June.

The company raised £8 million and £15 million in separate rights issues in June and November. The cash will be used primarily to fund development of its Moroccan licence next year. It has recruited Kosmos as partner on this project.

Dublin stockbroking firm Davy gave the company an initial “neutral” rating yesterday. Analysts Job Langbroek and Caren Crowley argued that the market had already taken its value into account.

They added that they believe there was plenty of growth potential in the stock and see the delivery of this as an opportunity to revisit the rating. “However, in the absence of specific details it is not possible to judge their impact,” they said.

Mr Langbroek and Ms Crowley point out in a note accompanying their assessment that Fastnet’s strategy is to create value through exploration work, surveying and drilling, and then to sell its prospects at an early stage.

The company’s backers include John Craven, who this year sold Dublin-based Cove Energy to Thai investor PTT for €1.5 billion. Cove bought into a large east African natural gas prospect at an early stage.

Along with its Moroccan interest, Fastnet holds a number of licences off the Republic’s south coast. Oil has already been discovered in one, block 49/13, while the second, dubbed Shanagarry, is known to hold natural gas.