Fastnet Oil & Gas - Re: FAST Stream Log - The market has been as...

The market has been as harsh with Fastnet as it has been with most other E&P stocks recently and institutions and retail have adopted a ‘risk-off’ approach to the sector. It appears that the appetite for beta has deteriorated to such a level that I consider some of these prices to be option money, not just on a successful well but much more. For Fastnet this year looks very exciting, it has a fully carried two well programme in an industry hot spot, onshore Morocco could deliver a gas field and even if the FA-1 well was to be a duster it would not be the end of the world and is virtually in the price. Add to that genuine potential from the Irish portfolio and the extremely low overhead (we are dealing with entrepreneurs here) and I can easily get to a target price well in excess of 30p a share, possibly substantially more especially as the company’s strategy is to monetise for shareholders on an asset by asset basis depending on success. With three months to reach TD starting from 17th March, June could be a very interesting month, at 10p a share this is understandable risk but serious reward and should be considered very carefully. The market has been as harsh with Fastnet as it has been with most other E&P stocks recently and institutions and retail have adopted a ‘risk-off’ approach to the sector. It appears that the appetite for beta has deteriorated to such a level that I consider some of these prices to be option money, not just on a successful well but much more. For Fastnet this year looks very exciting, it has a fully carried two well programme in an industry hot spot, onshore Morocco could deliver a gas field and even if the FA-1 well was to be a duster it would not be the end of the world and is virtually in the price. Add to that genuine potential from the Irish portfolio and the extremely low overhead (we are dealing with entrepreneurs here) and I can easily get to a target price well in excess of 30p a share, possibly substantially more especially as the company’s strategy is to monetise for shareholders on an asset by asset basis depending on success. With three months to reach TD starting from 17th March, June could be a very interesting month, at 10p a share this is understandable risk but serious reward and should be considered very carefully.