Fastnet Oil & Gas has decided not to exercise its option to farm into the Tendrara Lakbir Licence onshore Morocco, which expired on 31 December 2014.
The licence covers an area of 14,548kmÂ² with prospective basins for Triassic gas.
Fastnet Oil & Gas newly appointed CEO Carol Law said: “Current market conditions have severely hindered our ability to attract a partner to join Fastnet in the Tendrara opportunity, thus the board has elected not to exercise the Tendrara option agreement.
“Fastnet has a strong cash balance sheet with more than $18m in cash.
“Morocco has had steady GDP growth of 4% to 5% per year since 2000, helping to increase the level of its economic and fiscal attractiveness.”
“We believe this is the best decision and we will use great discipline in the allocation of our available cash to ensure maximum value for the shareholders.”
Fastnet Oil & Gas entered Morocco in May 2011 via its subsidiary Pathfinder Hydrocarbon Ventures.
Morocco has had steady GDP growth of 4% to 5% per year since 2000, helping to increase the level of its economic and fiscal attractiveness.
The government has set up a hydrocarbon agreement with attractive and favourable fiscal terms as part of its energy strategy to incentivise inward investment into hydrocarbon exploration.
Morocco is one of Africa’s largest energy consumers with 95% of its energy being imported.