Dublin based exploration firm Fastnet Oil and Gas has confirmed its intention to shift its focus away from oil and gas exploration and to instead seek investment opportunities in healthcare.
Fastnet said a detailed asset review of its oil and gas portfolio found that economic conditions in the sector resulted in an environment that made it impossible for the company to find partners to carry some of all of its exploration costs under acceptable terms and conditions.
It said the review was undertaken because of the rapidly changing economic conditions in the oil and gas sector during the last year.
"In light of the current economic climate within the oil and gas sector the board determined that it was not in the best interests of shareholders to either pursue M&A opportunities within the oil and gas sector or to expend further resources on the company's existing oil and gas assets," the company said.
At a general meeting last week, Fastnet shareholders voted to adopt an investing policy focussed on acquiring companies or businesses in the healthcare sector, particularly those in the biopharma sector.
On the same date the company name was changed from Fastnet Oil and Gas to Fastnet Equity.
"The board believes that the healthcare industry, particularly the biopharma sector, is experiencing strong momentum and there exist significant M&A and value creation opportunities for both small cap and large cap companies," commented company chairman Cathal Friel.
He also said the Fastnet board believes that it has access to an international pipeline of such opportunities that could lead to value creation for shareholders.
"The sector is experiencing high activity levels in the UK and also in Ireland, a country where the company has an existing operating base, with the required management, commercial, fiscal, operational and technical expertise all located in the Irish market," he added.
Fastnet also said today that it had cash reserves of $15.9m at the end of July.
