Celtic Sea Portfolio Update

Fastnet Oil & Gas plc focused on near-term exploration and appraisal acreage in Morocco and the Celtic Sea, provided an update on its Celtic Sea portfolio.

Highlights:

·      Award of new operated licensing option named the Ventry Licensing Option ("Ventry") in the North Celtic Sea Basin.

o  100% working interest in the Ventry Licensing Option covering 996 km2 over blocks 55/13 and part of blocks 55/7, 55/8, 55/12, 55/17, 55/18 and 55/19.

o  Contiguous with and extending westwards from the previously awarded Mizzen Licensing Option 12/3 and East Mizzen Licensing Option 13/3.

o  18-month licensing option with the opportunity to extend, which requires the reprocessing of existing 2D seismic data and various geologic studies.

·      Extension of existing licensing options: 13/3 ("East Mizzen"), 12/5 ("Shanagarry") and 12/6 ("Block 49/13") for a period of 18 months each.

o  Work commitments include the reprocessing of existing seismic data and various geological studies.

·      Extension of the Deep Kinsale Option with PSE Kinsale Energy Limited ("Kinsale Energy"), until 31st December 2015 which allows the Company to continue farm-in discussions with potential partners.

Carol Law, CEO of Fastnet, commented, "This announcement marks the successful conclusion of a significant investment of Company time, expertise and resources in securing our attractive Celtic Sea acreage position, a highly prospective area that is increasingly becoming the focus of industry interest. Modern seismic processing and geological techniques have allowed us to better understand the development of the petroleum systems in the area and build a portfolio of attractive low risk prospects and leads with excellent project economics even in the current oil pricing environment.

The company has add the Ventry Licensing Option to our portfolio, and believe it offers significant extension acreage with potential material upside on the west side of the large Mizzen structural prospect. It is believed that the western side of this large uplift will contain similar prospective stratigraphic features to those mapped on our 2013 3D seismic on the eastern flank of the Mizzen high and, in the event of exploration success in Mizzen and East Mizzen, we will be well positioned with running room on the plays.

"The extensions on our three existing prospective licence areas allows us to carry out the agreed work programmes, currently underway, which are economical and fully funded. The extension of the deadline to exercise the Deep Kinsale Option allows us to continue our farm-out discussions and is enhanced by the recent farm-in by Kinsale Energy to Lansdowne's nearby SEL 4/07.

"While we continue to evaluate opportunities for M&A in the current market environment, the Celtic Sea is very important to Fastnet and we see the potential to deliver significant shareholder value through developing this portfolio and attracting partners to pursue exploration activities."

Award of New Licensing Option

The Company has been notified by the Irish Department of Communications, Energy and Natural Resources (the "Department") that it has been awarded licensing option 15/1 covering blocks 55/13 and part blocks 55/7, 55/8, 55/12, 55/17, 55/18 and 55/19 in the North Celtic Sea Basin.

The newly named Ventry Licensing Option is valid from 1 March 2015 to 31st August 2016. It covers an area of 996 km2, and is contiguous with and extending westwards from the Company's previously awarded Mizzen Licensing Option 12/3 and East Mizzen Licensing Option 13/3. Fastnet is the designated operator and has a 100% working interest in the Ventry Licensing Option. The licensing option covers a period of 18 months and requires the reprocessing of existing 2D seismic data and various geological studies. Upon completing the work programme, the Company has the opportunity to extend the licensing option by a further 18 months. The Ventry Licensing Option provides extension acreage with significant running room for multiple play types which have been clearly imaged on Fastnet's Mizzen 3D seismic data, which was acquired in 2013.

Extension of Existing Licensing Options

The Company has separately been notified by the Department that existing Licensing Options have been extended as follows:

·      Licensing Option East Mizzen, extended for a further 18 months from 1st November 2014 to 30th April 2016.

·      Licensing Option Shanagarry extended for a further 18 months from 1st June 2014 to 30th November 2015.

·      Licensing Option 12/6 ("Block 49/13") extended 15th May 2014 until 14th November 2015.

In each of the Licensing Option work programmes associated with the three Licensing Options, the Company is required to reprocess existing seismic data and carry out various geological studies. The Company may elect to apply to convert these options to Exploration Licences following these extension periods.

Extension of Deep Kinsale Option

The Company is pleased to announce that it has agreed to extend its Exclusive Option agreement with Kinsale Energy until 31st December 2015. This extended period will allow the Company to continue farm-in discussions with potential partners. There are no changes to the exclusive option agreement from those previously announced on 14th August 2014.

The "Deep Kinsale Prospect" area extends from 4,000 feet subsea below the producing Kinsale Head gas field and is defined as the "Deep Kinsale Sub-Area" of Petroleum Lease No. 1 (see map of the area on the Company's website: www.fastnetoilandgas.com/go/operations/ireland).