Independent Technical Evaluation Report on the Molly .../media/files/f/fastnet-oil-and-gas/financial-and-other...Fastnet Oil and Gas (“Fastnet”) was established following the reverse

Independent Technical Evaluation Report on the Molly Malone Licensing Option in the South

Celtic Sea Offshore Ireland

July 2012 SLR Ref: 501.00279.00001

Fastnet Oil and Gas ii SLR 501.00279.0001 Independent Evaluation Report Molly Malone July 2012

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CONTENTS

1.0 INTRODUCTION .......................................................................................................... 4

2.0 COMPANY AND COUNTRY OVERVIEW .................................................................... 5

2.1 Company Background ...................................................................................... 5

2.2 Ireland Background .......................................................................................... 5

3.0 GENERAL DESCRIPTION OF THE LICENCE OPTION .............................................. 7

4.0 DATA BASE ................................................................................................................ 7

4.1 Wells .................................................................................................................. 7

4.2 Seismic .............................................................................................................. 7

4.3 Reports .............................................................................................................. 8

5.0 GEOLOGICAL DESCRIPTION .................................................................................... 8

5.1 Stratigraphy....................................................................................................... 9

5.2 Reservoir ......................................................................................................... 10

5.3 Source ............................................................................................................. 10

5.4 Trap .................................................................................................................. 12

5.5 Hydrocarbon Prospects ................................................................................. 12

5.6 Analogues ....................................................................................................... 13

6.0 OVERALL RISK FACTOR ......................................................................................... 14

7.0 HYDROCARBON CONTENT PROBABILITY ............................................................ 14

8.0 PROSPECT PARAMETERS ...................................................................................... 14

9.0 DESCRIPTION OF ADDITIONAL WORK PROPOSED ............................................. 15

9.1 Seismic Reprocessing .................................................................................... 15

9.2 Design of 3D Seismic Survey ......................................................................... 16

9.3 Regional Seismic Correlation ........................................................................ 16

9.4 Primary Reservoir Development .................................................................... 16

9.5 Seal Development ........................................................................................... 16

9.6 Presence and Maturity of Source Rocks ....................................................... 17

9.7 Final Technical Report ................................................................................... 17

10.0 TECHNICAL SUMMARY ........................................................................................... 18

11.0 CLOSURE .................................................................................................................. 18

12.0 REFERENCES ........................................................................................................... 19

TABLES

Table 1 Geological Probability of Success...................................................................... 14

Table 2 Prospect Parameters ........................................................................................... 15

FIGURES

Figure 1 Gas Pipeline Infrastructure (source BGE) .......................................................... 5

Figure 2 Irish Fuel Imports (source SEAI) ......................................................................... 6

APPENDICES

Appendix A - ...................................................................................................................... 23

Fastnet Oil and Gas iii SLR 501.00279.0001 Independent Evaluation Report Molly Malone July 2012

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DRAWINGS

Drawing 01 Map showing location of Molly Malone Licencing Option

Drawing 02 Map of the Molly Malone Licensing Option with well locations and key seismic lines

Drawing 03 Summarised well log Marathon 49/29-1



Drawing 06 Summarised well log BP 93/2-3.

Drawing 07 Summarised well log BP 93/2-1

Drawing 08 Map of Celtic Sea Basins

Drawing 09 Cross section of the North and South Celtic Sea Basins

Drawing 10 Generalised stratigraphic column

Drawing 11 Interpretations of seismic lines from the north east part of the South Celtic Sea Basin

Drawing 12 Portions of a seismic line from the southern portion of the South Celtic Sea Basin

Drawing 13 South Celtic Sea seismic profile showing Triassic salt pillow structure

Drawing 14 Palaeogeographical reconstruction of the Middle Triassic

Drawing 15 Licencing Option Area showing Molly Malone North & South Prospects

Drawing 16 Schematic showing suggested Middle Triassic sediment storage areas

Drawing 17 Lower Jurassic Toarcian source rock thickness and hydrocarbon potential

Drawing 18 Distribution of Lower Jurassic Toarcian source rock offshore Ireland & UK

Drawing 19 Distribution of Jurassic source rocks in the UK offshore

Drawing 20 Geoseismic section through Molly Malone North and South Prospects

Drawing 21 Geoseismic section showing typical South Celtic Sea Basin fault block structure

Fastnet Oil and Gas 4 SLR 501.00279.0001 Independent Evaluation Report Molly Malone July 2012

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1.0 INTRODUCTION

SLR Consulting (Ireland) Ltd ('SLR') of 7 Dundrum Business Park, Windy Arbour, Dublin 14, Ireland, has been commissioned by Fastnet Oil and Gas to complete a Technical Evaluation Report on a Licensing Option over blocks 49/25(p), 49/30(p), 50/21(p), 50/22(p), and 55/26 in the Molly Malone Basin of the South Celtic Sea offshore Ireland.

The Technical Evaluation Report has been prepared by Mr Martin Davies, Mr Nick O’Neill and Mr Richard Vernon based on data supplied by Fastnet Oil and Gas, a literature search carried out by SLR and some independent verification. The data comprised letter of award of licensing option, well logs, seismic lines, geochemical reports and interpreted data. SLR has exercised due diligence and independent analysis where appropriate on all technical information supplied by Fastnet Oil and Gas. Richard Vernon has some 30 years experience in the energy sector. After graduating with a business degree majoring in accounting and marketing, he worked as a financial analyst specialising in the Canadian oil and gas sector. He then joined the London based consultancy Petroleum Economics Limited and covered all aspects of the international oil and gas industry, including exploration/production and refining/marketing, taxation and licensing regimes, supply/demand/price strategies and forecasting, etc. for a wide range of clients including governments, international institutions and national and private oil companies. Subsequently, he moved to the US based multinational oil and gas company Phillips Petroleum Company as Director of External Affairs, responsible to the Managing Director of the Europe/Africa Division. Within SLR Ireland Richard is responsible for the economic assessment and analysis technical areas. Martin Davies BSc FGS Chart Geol EurGeol PESGB is a Senior Petroleum Geologist. Mr Davies joined SLR in 1993 after 18 years international experience in oil and gas exploration development and production, both onshore and offshore, with British Petroleum. He has worked in Ireland, the UK, North Africa, the Middle East and the Far East. He has worked on a number of exploration portfolio evaluations for UK and Irish based independent oil companies. Nick O'Neill BSc MSc PGeo EurGeol MEI PESGB M AAPG is a Senior Petroleum Geologist and Director of SLR Ireland. Mr O'Neill joined SLR in 1994, having worked internationally in oil exploration operations since 1977. He was operations manager in the Middle East for an oilfield service company. He obtained an MSc in Petroleum Geology in 1986. He was operations geologist with BP and Shell in London and Aberdeen responsible for North Sea exploration operations. He has written a number of valuations and CPR reports on hydrocarbon properties in the US, West Africa, and Italy for UK and Irish based independent oil companies. The evaluation presented in this report reflects our informed judgement based on accepted standards of professional investigation, but is subject to generally recognised uncertainties associated with the interpretation of geological, geophysical and subsurface reservoir data. It should be understood that any evaluation, particularly one involving exploration and future petroleum developments, may be subject to significant variations over short periods of time as new information becomes available. Other than for the purposes of completing the Technical Evaluation Report, neither SLR nor any SLR staff involved in its preparation has any commercial interest in Fastnet Oil and Gas or any associated companies.


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2.0 COMPANY AND COUNTRY OVERVIEW

2.1 Company Background

Fastnet Oil and Gas (“Fastnet”) was established following the reverse takeover by Terra Energy of AIM listed shell company Sterling Green Group plc in June 2012. Sterling Green Group plc was subsequently renamed Fastnet Oil and Gas plc and listed on the AIM market on 11th June 2012. The company has a strong management Team, with a proven track record of exploration success behind it.

2.2 Ireland Background

The first exploration well offshore Ireland was drilled in the Celtic Sea in 1970 and the following year the Kinsale Head Gas field was discovered by Marathon. This field came on stream in 1978. By Irish standards, Kinsale Head was a large field, which together with three small satellite fields, satisfied domestic demand for many years. The overhang of this large accumulation of gas is likely to have hindered further exploration in the Celtic Sea for a significant period. However, as production from the Kinsale Head complex declined in the early 1990’s, it became evident that in the absence of further significant gas discoveries, imports from the UK would be needed. Hence the first gas interconnector to Scotland was completed in 1993, which was followed by a second pipeline in 2003. Although the Corrib Field was discovered in the Slyne basin of the Atlantic Margin in 1996, there have been long delays in bringing it on stream.

Figure 1 Gas Pipeline Infrastructure (source BGE)

The Island of Ireland has a well developed gas pipeline infrastructure, with good connections to the UK, which itself is well connected by pipeline and LNG import facilities to Continental Europe and further afield.

As gas production from Kinsale Head declined and demand rose, the level of gas imports has increased significantly in recent years. Moreover, all of Ireland’s oil consumption, which in 2010 accounted for some 50% of primary energy demand, has to be imported.


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Figure 2 Irish Fuel Imports (source SEAI)

Thus it is evident that there would be a significant market in Ireland for any hydrocarbons that might be discovered. Although a portion of the gas market would be supplied by the Corrib gas field when it comes on stream, it is not expected to account for more than 60% of the market, even at peak production. If large amounts of gas were to be discovered, it is possible that gas could be routed to the UK via reconfigured Interconnectors. Any oil discovered offshore Ireland could either be moved to the Whitegate Refinery located near Cork for processing or exported.

By most international standards, Ireland can be considered to be relatively under explored, with 129 exploration wells drilled over a 42 year period, of which 62 were in the North Celtic Sea Basin, 3 were in the Irish Sector of the South Celtic Sea basin (an additional 8 wells were drilled in the UK Sector) and 12 in the Fastnet Basin. These wells resulted in only 4 commercial developments of varying size, all of which were gas in the North Celtic Sea Basin. This results in a very low exploration success rate by worldwide standards. Following the discovery of Kinsale Head, the level of exploration in the Celtic Sea in particular and Ireland in general can be considered sporadic at best. A number of other oil and gas finds have been made in the Celtic Sea, but none to date, have proved to be commercial. However, earlier this year, Providence Resources announced a discovery with development potential at the Barryroe field in the North Celtic Sea Basin. It is possible that this successful well (which should really be considered an appraisal of a previous non commercial discovery) could stimulate a reappraisal of the Celtic Sea and its potential for further discoveries.

The fiscal regime is considered to be appropriate for the stage of development of the country’s exploration history and reflects the relatively high risk associated with exploration in Ireland, when compared for example with the UK and Norway. The current terms, which were modified in 2007, include a basic corporation tax of 25% and a sliding profit resource rent tax based on field profitability. This ranges from 5% to a maximum rate of 15%, giving a maximum combined marginal tax of tax rate of 40%. There are no royalties and expenditures are subject to 100% write-off. Thus, given the low/medium cost development scenarios for the Celtic Sea, any commercial development of a small/medium sized field should prove to be commercially attractive.


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3.0 GENERAL DESCRIPTION OF THE LICENCE OPTION

Terra Energy Ltd (now Fastnet Oil and Gas) was awarded on 7th June 2012 an 18 month Licence Option 12/2 covering 647.6 km2 in blocks 49/25 (part), 49/30 (part), 50/21 (part), 50/22 (part) and 50/26 (part) in the Molly Malone Sub-Basin of the South Celtic Sea Basin some 100kms SSE of Inch gas terminal on the County Cork coastline and some 65kms south-east of the Kinsale gas field. The location of this Licence Option can be seen in Drawing 01.

Under the terms of the Licence Option, Fastnet has 18 months to fulfil its agreed Work Programme, following which it may relinquish, apply for an extension of a further 18 months, or convert the Licence Option to a full Exploration Licence. The latter requires commitment to drilling an exploration well. The Licence Option can also be relinquished after three years.

The Phase 1, 18 month Work programme requires Fastnet to:

• Reprocess a minimum of 180 kilometres of existing 2D seismic data, subject to locating, accessing and copying seismic field tapes.

• Subject to satisfactory results from the 2D seismic processing described above, design a 3D seismic survey and appropriate acquisition parameters to reflect the depth and nature of the primary prospective horizons present in the Application Area.

• Regional Seismic Correlation: Generate a composite regional seismic tie, based on existing seismic data between 49/29-1, 93/2-3 (UK well), and 102/29-1 (UK well).

• Study of primary reservoir development, seal development, presence and maturity of source rocks, and preparation of Final Technical Report will also be carried out during the initial LO period

Following the completion of the Phase 1 Work Programme, Fastnet has the option to:

• Relinquish the Licence Option

• Extend the Licence Option for up to a further 18 months, following agreement of a Phase 2 Work Programme.

• Convert the Licence Option (any time during Phase 1 or 2) to an Exploration Licence, which carried an obligation to drill an exploration well.

4.0 DATA BASE

4.1 Wells

Three wells were drilled by Marathon in the early 1970s in the Irish Sector in the shallower western part of the South Celtic Sea Basin – 58/3-1, 49/29-1 and 49/30-1. In addition six wells have been drilled in the adjacent UK part of the basin – Amoco 93/6-1, BP 93/2-1, Britoil 93/2-2, Britoil 93/2-3, Shell 102/28-1, Conoco 102/28-2 and Conoco 102/29-1 (see Drawings 02, 03,04,05,06, and 07).

4.2 Seismic

The 2D seismic data are publicly available for the Molly Malone Licence Block. The data are of moderate to excellent quality. Seismic data in the Irish Sector were acquired principally by Merlin Profilers and Marathon, although the older data is dominated by low seismic frequency content. Seismic imaging of sub-salt reflectors and major basin-bounding faults is poor where extensive migration of salt has occurred up fault planes.


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The principal 2D seismic coverage across the Molly Malone Licence Block forms a sparse series of NW-SE oriented dip lines approximately 3.5 km. apart. Two seismic strike lines oriented NE-SW provide limited seismic ties to the dip lines in the basinal area, however there are no similarly oriented strike lines to assist with correlation of the widely separated dip lines in the prospective area of the northern basin shoulder. Total relevant seismic coverage is approximately 200 km. However the 1970‟s and 1980‟s vintages of seismic data are of vastly different frequency content, making correlation of the seismic events on the different vintages of data extremely difficult.

4.3 Reports

The seismic, well data and reports supplied to the authors by Fastnet Oil & Gas are listed in Appendix A.

5.0 GEOLOGICAL DESCRIPTION

The South Celtic Sea/Bristol Channel Basin is a relatively narrow and elongated sedimentary trough, located within the northern part of the Hercynian fold belt and filled with ?Permo-Triassic red beds to Jurassic marine sediments. Its present configuration is the result of a three-fold sequence of tectonic phases initiated during the late Palaeozoic. The origin of the basin appears to be related to localised extensional reactivation of Hercynian thrust zones during the ?Permian and Early Triassic, followed by regional subsidence during the Late Triassic and Jurassic. Uplift of the basin margins, together with dextral strike-slip movements in an east-west sense and large-scale erosion during the Late Jurassic to Early Cretaceous, resulted in the present elongated configuration of the Lower Mesozoic basin. Regional subsidence from Aptian time onwards resulted in widespread deposition of a relatively thin section of Wealden elastics and Upper Cretaceous chalk, unconformably overlying folded pre-Cretaceous strata. Sedimentation was interrupted during the Early Tertiary by a series of tectonic events that included emplacement of the Lundy igneous mass during the Early Eocene and mild basin inversion during the Oligo-Miocene. Inversion was accompanied by dextral reactivation of the NW-SE oriented Sticklepath fault zone. The total amount of uplift, probably not exceeding 350 m, reflects the rather stable configuration of the underlying lithospheric crust as indicated by seismic reflection and refraction data (van Hoorn 1987).

The basins of the Celtic Sea are noticeably elongate and are generally orientated ENE-WSW. Two parallel sets of basins occur, separated by an intermittent basement high (the Labadie Bank-Pembrokeshire Ridge – see Drawing 08). The northern set of basins includes the important North Celtic Sea Basin (a proven hydrocarbon province) and the Fastnet Basin to the south-west and the Mizzen Basin in the WSW (Naylor & Shannon 2011).

The North Celtic Sea Basin is known to contain up to 9 kilometres of Triassic to Tertiary sediment overlying Palaeozoic basement (mainly Devonian and Carboniferous). The Triassic and Jurassic sequences are well developed and are covered by a variable thickness of Cretaceous and Tertiary rocks. A characteristic of these basins are a number of inversion episodes, especially in the Tertiary.

The Molly Malone Sub-Basin is located in the northern part of the South Celtic Sea Basin in moderate water depths of up to 100 meters. It is bounded to the north by a basement high (Pembrokeshire Ridge) and to the south by a more subdued intra-basinal high termed the Median Ridge.

It has been distinguished as a separate tectonic element in this review of the Molly Malone Licence Option as it encompasses a northern basin shoulder area that is largely unaffected by Tertiary (Miocene) inversion tectonics and a basin axis containing the thickest Lower and


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early Middle Jurassic sedimentary section preserved beneath the Upper Jurassic and Aptian unconformities. Hence the Molly Malone Sub-Basin is a unique tectonic sub-element of the larger South Celtic Sea Basin containing the potential for relatively undisturbed pre-inversion structural traps; and source rocks that have enhanced generative potential given that they have not been as severely uplifted during the Upper Jurassic in response to salt diapirism and therefore require less pre-Miocene inversion burial to continue the maturation process.

5.1 Stratigraphy

The stratigraphy of the Molly Malone Sub-Basin is well understood (see Drawing 10). Seismic correlation to the 58/3-1 and 93/2-3 wells supports the basin wide presence of the Triassic Sherwood Sandstone and overlying Upper Triassic Mercia salt. These sequences are underlain by metamorphosed Devono-Carboniferous sediments (cored in 93/2-2). The well evidence suggests that reservoir quality in the basal Triassic sands varies from north to south, reflecting the positive influence of the E-W trending “Hercynian Front” in the north as a potential sediment source area. Critically wells penetrating the Triassic over the Hercynian Front in the North Celtic Sea Basin (53/3-3, 50/12-3 and 50/10-1) encountered only an attenuated Triassic section devoid of significant sand intervals and salt. Published regional Bouguer gravity maps for the Celtic Sea Basins show the presence of a well-defined E-W trending gravity alignment passing through the Molly Malone Licence that reflects the trend of the Hercynian Front. The prospective northern basin shoulder of the Molly Malone Basin is developed along this trend. As in the North Celtic Sea and Fastnet Basins, as confirmed by well penetrations, a well-developed Lower and early Middle Jurassic marine sequence is present in the Molly Malone and South Celtic Sea basins reflecting the regional distribution of these sequences throughout the basins off SE Ireland. The section is devoid of potential reservoirs but contains several proven oil source rocks, as encountered in UK well 102/29-1. In common with the Fastnet Basin, the richest source intervals in the Lias occur in the depositional axes of the basins where the influence of land-derived plant material is weakest.

Musgrove et al (1995) note that several wells in the UK sector of the South Celtic Sea Basin penetrated Triassic Mercia Mudstone on Basement with the Sherwood Sandstone Formation absent. Musgrove also demonstrates this on seismic (Drawing 11). This is not thought to be a problem in the Molly Malone area on the northern shoulder of the basin. He also demonstrates the onlap of both the Sherwood Sandstone and Mercia Mudstone onto the Pembrokeshire High further to the north-east in UK waters (Drawing 12).

There is seismic evidence that salt withdrawal and early salt swells began in the late Middle Jurassic, coinciding with the uplift and emergence of many areas adjacent to the developing Atlantic Margin (Drawing 13). As a consequence the Upper Jurassic and Lower Cretaceous sections, in contrast to the North Celtic Sea Basin, are relatively thin and contain several minor unconformities. The attenuated Lower Purbeck (Portlandian) sediments rest unconformably on eroded Lower and early Middle Jurassic strata. These are overlain by Wealden fluvial sands which are excellent reservoirs. If subtle structures or combination stratigraphic/structural traps occur at this level they could be potential for re-migrated oil and gas being present.

The unconformity at the base of the Lower Purbeck created a series of northward-dipping tilted fault blocks along the northern basin shoulder of the Molly Malone Basin. These were mildly accentuated at the Aptian unconformity (near the base of the Upper Wealden).

After deposition of the Upper Cretaceous Chalk a period of early Tertiary emergence was followed by resumed Tertiary deposition. Locally basin inversion occurred in the Miocene. The northern basin shoulder was largely unaffected by this period of uplift in the Molly Malone Licence Block.


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5.2 Reservoir

The primary target for any exploration in this area is the Triassic Sherwood Sandstone (Drawing 14). The UK well 93/2-2 demonstrates a well developed Sherwood Sandstone sequence in a proximal basin setting (Drawing 02). The nearby 93/2-3 well also encountered good Sherwood Sandstone but this was not bottomed as the well was junked (Drawing 06). In contrast the Irish well 58/3-1 penetrated the more distal basinal facies of the Sherwood Sandstone (Drawing 05). These sands are thought to have been sourced from the emerging “Hercynian Front” to the north and to have basin-wide distribution. The sands were laid down in a braided stream system and are anticipated to have good lateral continuity. Similar sands are very productive in the Wytch Farm oil field in Southern England, the Morecambe Bay gas fields in the East Irish Sea Basin and in the Corrib gas field offshore Western Ireland (Tyrrell et al. 2012).

It should be noted that while no Permian sequence is proven in the basin, previous workers have suggested some 70m of Permian may be present beneath the Sherwood Sandstone in UK well 93/6-1 (25kms south of the Molly Malone Block) where good Sherwood Sandstone reservoir is reported (Musgrove et al 1995).

The Operator argues that the three Marathon wells drilled in the basin in the 1970s all targeted young Tertiary inversion structures and structures related to Triassic salt movement and that there was no valid structural test of the Sherwood Sandstone.

The Operator suggests there is a potential for seismic closure at Sherwood level in excess of 10,000 acres in the Licence Area (Drawing 15). The NE extension of the bounding fault becomes intruded by a salt diapir which creates uncertainty about the geometry and potential extent of closure. Correct depth conversion of the seismic data is crucial but that depth conversion is dependent on resolving the potential salt thickness in the NE part of the structure. The trap configuration is complex and improved definition of the fault planes is required to examine the potential juxtaposition of the hydrocarbon trap with potential source rocks.

The Sherwood Sandstone is thickly developed and has good reservoir properties in 93/2-3 (Drawing 06). The sands are likely to have been sourced from the emerging “Hercynian Front” to the north and to have basin-wide distribution. The sands are braided-stream sheet sands and are therefore anticipated to have good lateral continuity. Similar sands form the reservoir in the Corrib gas field, Wytch Farm oil field and Morecambe Bay gas field in the east Irish Sea Basin (Drawing 16). Another key well is 102/28-2, some 18kms east of the Molly Malone North structure, where some 106 feet of Sherwood Sandstone were penetrated above total depth.

Griffiths (1995) predicted that the Sherwood Sandstone fairway may only be of the order of 8 to 13 km wide but could extend significantly along depositional strike. The key to identification of this fairway is good seismic controlled by well data.

The Wealden fluvial sands should not be ruled out as a secondary objective as excellent reservoir sandstones have been proven in a numbers of wells in the South Celtic Sea Basin.

5.3 Source

There are three recognised potential source rocks in the Celtic Sea region. These are the Lower Jurassic (predominantly Toarcian); the Upper Jurassic (predominantly Kimmeridgian); and the topmost Jurassic/base Cretaceous Portlandian/Purbeckian sequence. There is a possible potential for dry gas sourcing from the Carboniferous but this is thought unlikely in


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the South Celtic Sea Basin. Biogenic gas sourcing has also been suggested in part for the Kinsale Head gas field (O’Sullivan 2001, 2012).

The distribution of the Lower Jurassic Toarcian source rock is now better known (see Drawing 17) and is well documented by Scotchman (2001). He demonstrates that the Toarcian source rock interval averages 187 metres in the North Celtic Sea basin and is oil prone in the basin centre and gas prone on the margins. The Jurassic is absent over most of the Pembrokeshire High and the Toarcian again thickens south into the South Celtic Sea Basin and at least two wells (49/29-1 & 49/30-1) has proven oil-prone source rock (Drawing 17). In well 49/29-1 much of the Lower Jurassic source is truncated by the Mid-Upper Jurassic unconformity whereas well 49/30-1 did not reach the base of the Lower Jurassic (Murphy 1995). Scotchman (2001) quotes TOC of 2.7 to 5.7, S2 of 8.5 to 20.6 kg/t and HI of 283 to 383 in the Toarcian in 49/29-1 (which is close to the Molly Malone prospects) which indicates a good oil prone source rock (see Drawing 18). Wells in the UK sector, such as 93/2-2, 102/28-1 and 102/29-1, confirm thick Lower Jurassic source development.

The Lower Jurassic is a proven source rock for light oil in the Fastnet Basin, where oil has been tested at low rates from tight Sinemurian sands, and in the North Celtic Sea Basin (Helvick 49/9 oil discovery).

Publicly available thermal maturity data for UK well 102/29-1 indicates that the Lower Jurassic shales in the well are potentially rich source rocks for oil and are at an early mature stage for hydrocarbon generation on-structure. This is reflected in the presence of wet gases (in the range 30,600 to 120,816 ppm C1 – C4) in the source rock intervals penetrated whilst drilling. Extrapolating the thermal history for the Lower Jurassic from this well would potentially place the Lower Jurassic in the Molly Malone Basin in the peak maturity window for oil. Irish well 49/29-1 encountered light brown oil staining, pale yellow fluorescence and a pale yellow streaming cut in the Hettangian section in non-reservoirs. The Hettangian section penetrated in this well includes limestones similar to those developed in the Fastnet Basin where an oil prone source rock is developed immediately above the limestones in the “Lias Marl”. Good shows were seen while drilling the thick Lower Jurassic in wells 93/2-2 and 93/2-3.

Further work is required to map the thickness, quality and maturity of the Lower Jurassic source rock interval in the South Celtic Sea Basin as proposed in section 6 of the work programme for the Molly Malone block (see Section 9). It is noted that while the main Lower Jurassic source interval is considered Toarcian in age, there could be potential in intervals of Sinemurian, Pliensbachian, Hettangian and even Rhaetian age. The entire sequence requires correlation and review. Drawing 19 shows the DTI (now DECC) interpretation of the distribution of Jurassic source rocks in UK waters and suggests they could be oil prone in the South Celtic Sea/Bristol Channel basins (Tyrell 2004). The bulk of the Lower Jurassic is assumed to be gas prone but geochemical analysis has shown that oil prone intervals are present in parts of the Lower Jurassic in some parts of the South Celtic Sea Basin as has been proved in the adjacent North Celtic Sea Basin. Further geochemical sampling and modelling is required to establish initial and peak gas generation in the various wells and to check whether a second later phase of generation may have occurred in the Early Tertiary. Timing of structural growth and the possibility of re-migration of hydrocarbons with salt movement needs further work.

It should be noted that an early phase of oil migration is likely to have been followed by a later phase of gas migration from the basin depocentre and that this gas phase could displace most or all of the initial oil phase from the main structures. A similar situation is encountered in many parts of the North Celtic Sea Basin where small amounts of residual oil are found within a number of gas accumulations.


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Younger source rocks, such as the Kimmeridgian and Portlandian/Purbeckian, are thought to be absent or immature in the South Celtic Sea Basin.

5.4 Trap

The development of broadly E-W trending basin shoulder faulting at the Upper Jurassic unconformity created a number of tilted fault blocks in the Molly Malone Basin. These faults have sufficient throws to juxtapose downthrown Lower Jurassic source rocks and upthrown Triassic Sherwood Sandstone reservoirs (see Drawings 20 and 21). The geometry of the source beds and the pathway for charging of the upthrown reservoirs is complicated by the lack of good seismic resolution of the fault planes and the “smearing” of seismic events within the fault zones due to poor migration processing of the seismic stacks. The presence of salt was a major impediment in the original seismic processing of the data.

There is the potential to develop large seismic time closures in excess of 10,000 acres within the Molly Malone Licence Block below the base of the Mercia salt. However the north-eastern extension of the fault bounding the structure to the south becomes intruded by a salt diaper, thereby creating uncertainty as to the geometry and extent of potential strike closure in this direction. Depth conversion will have a significant impact on the extent of any time closures. Depth conversion is highly dependent upon resolving the potential thickness of the Mercia salt over the north-eastern part of the structure.

The trap configuration is therefore seismically complex and dependent on the clear recognition of seismic events below the salt and upon an improved definition of fault planes bounding the potential hydrocarbon traps and the seismic geometry of the juxtaposed source rocks. The latter impacts the possible extent of any hydrocarbon kitchens. The work programme (see Section 9) proposes work on reservoir quality and facies correlation; seismo-stratigraphic correlation and seal quality.

Caprock is provided by the Mercia saliferous beds which have regional distribution in the South Celtic Sea Basin and south-western parts of the North Celtic Sea Basin. Thick salt is present in 49/29-1, 93/2-2, 93/2-3, 102/28-1 and 102/28-2 nearby.

Corcoran & Doré (2002) and Doré et al (2002) carried out interesting studies of the hydrocarbon accumulations in exhumed and non-exhumed basins and used Kinsale Head (Celtic Sea), Corrib (Slyne Basin) and South Morecambe (Irish Sea) as examples. Their conclusions on the effectiveness of cap rocks and the effect of depressurisation of reservoirs during exhumation are very relevant to the South Celtic Sea Basin. In the absence of salt they recognised that mudrock caprocks are most effective when deformation occurs before embrittlement and that leakage is likely if deformation occurs after embrittlement. If salt can however be confirmed as the likely seal the risk of trap leakage is greatly reduced.

5.5 Hydrocarbon Prospects

Molly Malone North Prospect: The presence of the moderate to good Sherwood Sandstone reservoir is proven in wells 93/6-1, 93/2-2 and 93/2-3. Wells 49/29-1 and 102/28-2 encountered Sherwood Sandstone with poor reservoir quality. The prospect is expected to be in a more proximal location with better reservoir quality. The probability of the reservoir being present and of sufficient quality is estimated at 90%. The probability of Lower Jurassic source rock being present is estimated at 80%. Source rock maturity is less certain and the probability of hydrocarbon generation is estimated at 50%. Because salt movement may have restricted migration pathways the migration risk is estimated at 40%. The trap for this Triassic Sandstone prospect is an elongate East-West trending structure covering the northernmost parts of Blocks 49/30 and 50/26 and extending into southernmost Blocks 50/21 and 50/22. A small part of the structure may extend into UK blocks 102/27 and 102/22. The


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structure is an E-W trending northwards rotated fault block dip closed to north and dip closed along strike to E and W. The timing of structure formation with respect to the timing of hydrocarbon migration is critical to the success of the prospect. Possible late migration or remigration of already trapped hydrocarbons from deeper in the basin could still fill a late stage structure. The probability of the trap being present and effective is estimated at 80%.

New seismic acquisition will de-risk the trap integrity, better image the top Sherwood reservoir and confirm maximum closure.

Molly Malone South Prospect: Molly Malone South lies immediately south of Molly Malone North. The trap is an E-W trending northwards rotated fault block fault closed to north and dip closed along strike to East and West.

Of the two the Molly Malone North Prospect is structurally higher, simpler and therefore a more attractive target. The Molly Malone South Prospect should be considered as a follow on target if the North Prospect is successful.

5.6 Analogues

The Molly Malone Basin offers an opportunity to develop a play concept incorporating all the elements of a working petroleum system tested in adjacent areas offshore SE Ireland, such as the Fastnet Basin, and onshore England, as in the Wessex Basin (Wytch Farm oil field).

Wessex basin: This basin hosts the very large Wytch Farm oil field with 754MMbbls STOIIP in the Triassic Sherwood Sandstone Formation.

In the Wytch Farm area the Sherwood Sandstone Group is a 100 to 300m thick sequence of terrestrial red-beds composed of arkosic sandstones in a complex and interdigitating assemblage of floodplain, aeolian, lacustrine, channel fill and sheetflood facies. The channel, sheetflood and floodplain facies are the most common, with the first two providing the dominant reservoirs (UK Block 98/11 Relinquishment Report 2009).

In the Wytch Farm area the Lower Sherwood has a mean porosity of 18% and permeability often >1.5D. The Upper Sherwood ranges from 10 to 15% porosity and permeability around 150mD. The lacustrine deposits at the top of the Sherwood can reduce gross reservoir quality, particularly with a vertically restricted oil column. At Wytch Farm, this zone is about 10 to 20m thick (UK Block 98/11 Relinquishment Report 2009). In the Wytch Farm oil field flow rates of 1000 to 3000 bopd are common on test. The main Sherwood Sandstone Group reservoir had a STOIIP estimate (in 1998) of 754MMbbls of which 397MMbbls were thought to be recoverable (52% recovery efficiency) (Underhill and Stoneley 1998).

Comparison could also be made to the excellent Sherwood Sandstone gas reservoirs of the Morecambe Field in the East Irish Sea Basin and the similar reservoir in the Corrib Field in the Slyne Basin West of Ireland (Dancer et al 2005).

While these analogues are far removed from the South Celtic Sea Basin they do indicate that the Sherwood Sandstone can be an excellent reservoir for both oil and gas.


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6.0 OVERALL RISK FACTOR

The combined geological probability of success (GPoS) as discussed above is summarised in the table below:

Table 1 Geological Probability of Success

Molly Malone Licensing Option

Prospect Trap Reservoir Seal Source Maturity Migration GPoS

North Gas Prospect 0.8 0.8 0.9 1 0.35 0.6 12%

South Gas Prospect 0.5 0.8 0.9 1 0.35 0.6 8%

North Oil Prospect 0.8 0.8 0.9 0.8 0.5 0.4 9%

South Oil Prospect 0.5 0.9 0.9 0.6 0.5 0.4 5%

In summary the prospect with the highest probability of success is the Molly Malone North gas prospect. The Molly Malone South Prospect should be considered as a secondary objective if the North Prospect is proven to contain hydrocarbons.

7.0 HYDROCARBON CONTENT PROBABILITY

Thick Lower Jurassic marine source rocks are present. They are variable in quality but have the potential to generate gas, oil and gas condensate. Unlike the Purbeckian source rock in the North Celtic Sea the Lower Jurassic source rock is marine and the oil is likely to be less waxy, light (API 30˚ or higher) and more like the oil produced at Wytch Farm and the North Sea. No data is available on other crude parameters but it is not expected to be sulphur rich.

8.0 PROSPECT PARAMETERS

The resource estimates are based on the limited seismic database in the area combined with the regional knowledge of similar plays in the North Celtic Sea Basin.

The seismic data acquired on both sides of the UK/Irish median line were acquired at different times, on different grid orientations with different acquisition parameters making integrated interpretation particularly difficult where structures cross the median line. Correlation of faults is therefore uncertain. While the quality of the seismic lines is quite good the spacing is very broad. Three possible closing contours are mapped but the quality of the seismic precludes a full evaluation with low best and high resource estimates at this time. The nearest wells 93/2-2 and 93/2-3 have excellent quality Sherwood Sandstone reservoir. Only a best case is presented assuming that the prospect is on the Sherwood Sandstone fairway.

Two structures are recognised (Drawing 13) and separate oil and gas resource estimates have been prepared for both (see Table 2 below).


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Table 2 Prospect Parameters

9.0 DESCRIPTION OF ADDITIONAL WORK PROPOSED

Fastnet proposes a significant work programme for the 18 month period of the Licence Option. This includes:

9.1 Seismic Reprocessing

Reprocessing a minimum of 180 kilometres of existing 2D seismic data, subject to locating, accessing and copying seismic field tapes. It should be noted that the 1984 survey is quite wide spaced and even with good results this reprocessing can only help to define possible plays and assist in the design of a 3D seismic survey that would be essential prior to drilling.

It is acknowledged that seismic processing technologies have made significant advances since the existing non-exclusive speculative 2D seismic data were acquired over the Molly Malone Licence Block in 1984, particularly in the area of pre-stack depth migration. Thick salt is developed over parts of the Molly Malone Licence Block which obscures the mapping of the prospective Triassic Sherwood Sands over the north-eastern part of the dominant structural lead mapped within the Molly Malone Licence Block. Pre-stack depth migration will assist in defining fault plane and Sherwood Sand reservoir geometry beneath the salt. Given the variation in the thickness of the salt over the prospective Triassic lead, pre-stack depth migration will help facilitate more reliable depth conversion with which to assess potential structural closure in the critical north-eastern strike direction. Greater confidence in the magnitude of offsets along faults will also help to define the potential for juxtaposition of potential Triassic reservoirs and Lower Jurassic source rocks.

Molly Malone North Oil Units Best

Area acres 17,170

Net productive thickness ft 796

Reservoir Bulk Volume MM ft3 1.0603E+11

Porosity % 18%

Oil Saturation % 70%

Geometric Factor

Formation Volume Factor

STOIIP MMBbls 6677.3

GPoS %

Risked Volume Oil MMBbls 615.4

Molly Malone South Oil Units Best

Area acres 15,000



Porosity % 18%

Oil Saturation % 70%

Geometric Factor

Formation Volume Factor

STOIIP MMBbls 5833.4

GPoS %

Risked Volume Oil MMBbls 283.5

Molly Malone North Gas Units Best

Area acres 17,170



Porosity % 18%

Gas Saturation % 65%

Geometric Factor

Gas Expansion Factor 0.004

GIIF BCF 10448.4

GPoS % 12%

Risked Volume Gas BCF 1263.8

MMBoe 236.2

Molly Malone South Gas Units Best

Area acres 15,000



Porosity % 18%

Gas Saturation % 65%

Geometric Factor

Gas FVF 0.004

GIIF BCF 9127.9

GPoS %

Risked Volume Gas BCF 690.1

MMBoe 129.0


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The operator rightly claims it is essential to improve the understanding of the nature of the stratigraphic section beneath the Triassic salt in the Molly Malone Licence Block, through applying modern seismic reprocessing techniques and carrying out the programme of regional studies described below, in order to design the appropriate acquisition parameters for any potential 3D seismic survey to be acquired within the Licensing Option Area at some future date. Greater confidence, based on the existing seismic data, in the potential for north-eastern closure for the dominant prospective lead in the Molly Malone Licence Block is required before a significant financial commitment to a 3D seismic survey can be made.

9.2 Design of 3D Seismic Survey

Subject to satisfactory results from the 2D seismic processing described above, design a 3D seismic survey and appropriate acquisition parameters to reflect the depth and nature of the primary prospective horizons present in the Molly Malone Licence Block.

9.3 Regional Seismic Correlation

Generate regional seismic ties, based on existing seismic data, to:

(a) UK well 93/2-3

The objective will be to confirm the correlation of the Triassic Sherwood Sand reservoir section penetrated in 93/2-3 into the Molly Malone Licence Block.

(b) UK well 102/29-1

The objective will be to confirm the correlation of the Lower Jurassic source rock section penetrated in 102/29-1 into the Molly Malone Licence Block.

(c) Irish well 49/29-1

The objective will be to correlate the Jurassic and Triassic stratigraphic markers penetrated in 49/29-1 into the Molly Malone Licence Block.

A review of the potential seismic database in the UK Sector blocks 93/2, 102/27 and 102/28 will be undertaken in order to compile any additional seismic information that might be helpful in further defining north-eastern closure for the dominant prospective lead mapped in the Molly Malone Licence Block.

9.4 Primary Reservoir Development

Using wireline logs from the Irish and UK Sectors and regional seismic data to provide a structural framework at the time of the deposition of the potential reservoir sands, develop a depositional model for the Triassic in the Molly Malone Basin.

Petrophysical analysis of the Triassic reservoirs in UK well 93/2-3.

9.5 Seal Development

Using wire line logs and regional seismic data assess the thickness and distribution of the Triassic salt top seal and identify any potential regional variation with respect to seal integrity.


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9.6 Presence and Maturity of Source Rocks

Identify Jurassic source intervals in the South Celtic Sea Basin, from wireline logs and geochemical reports for released Irish and UK Sector wells, and relate their development to structural setting at the time of deposition.

Using regional seismic data for the, Molly Malone Basin, isopach the extent of the thickest source rock intervals and reconstruct their maximum depth of burial, using vitrinite data and other maturity indicators for released Irish and UK Sector wells to restore the thickness of eroded sediments at the Late Jurassic, Late Aptian, Early Tertiary and Miocene unconformities.

Restore the extent of the potential Lower Jurassic source kitchens prior to Miocene inversion, where a direct migration pathway into the dominant prospective lead in the Molly Malone Licence Block can be demonstrated.

Quantify, based on source richness and maturity data for the UK Sector released well 102/29-1, the generative potential of the source kitchen immediately in juxtaposition with the Triassic reservoir section in the prospective primary structure in the Molly Malone Licence Block prior to Miocene uplift.

Carry out a geochemical analysis, subject to the availability of well cutting samples, the Hettangian oil shows seen in 49/29-1 to determine their chromatographic profile, likely origin in relation to the known source rock intervals in the South Celtic Sea and Fastnet Basins (based on geochemical reports for released Irish and UK Sector wells), and potential maturity state. Based on the results of this geochemical study, calibrate the above model for the generative potential of the Lower Jurassic source kitchen in the Molly Malone Licence Block.

Compare the extrapolated burial history and maturity profiles for proven Jurassic source rocks for wells in the Fastnet Basin and Goban Basin, using released geochemical reports, with the anticipated depth of burial of potential Lower Jurassic source rocks in the Molly Malone Licence Block in order to further assess the reliability, based on regional case studies, of the generative potential of the Molly Malone Basin and the likely hydrocarbon product.

The objective of the above programme of work is to potentially de-risk one of the key criteria for the development of a working petroleum system in this part of the South Celtic Sea Basin, namely an effective generative potential. Regional data from the Fastnet Basin indicates that Lower Jurassic source kitchens of even limited extent can generate significant volumes of hydrocarbons.

9.7 Final Technical Report

Incorporate the results of the above work programme, including seismic time and depth mapping, in a final report for the proposed Licensing Option.

Key issues to address will be as follows:

• Presence of Sherwood Sandstone reservoirs.

• Improved seismic imaging of sub-salt reflectors and fault planes.

• Improved depth conversion and re-assessment of critical north-eastern closure.


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• Potential for the presence of a viable petroleum system and comparison with offset

wells that have tested hydrocarbons.

• Justification for a 3D seismic survey.

The work programme as proposed will consolidate the play concepts and develop a 3D

seismic acquisition programme which will identify drill targets.

10.0 TECHNICAL SUMMARY

The attractiveness of the Molly Malone Prospects is that the two wells immediately south of the prospect area have confirmed thick Sherwood Sandstone reservoir. All of the wells that have drilled beneath the Jurassic have encountered a thick salt caprock. The quality of seismic data acquired in the area is sufficiently good that new seismic acquisition should allow direct mapping of the Sherwood Sandstone fairway and the presence or absence of salt across the prospect area. There is also a high probability of being able to map direct hydrocarbon indicators (DHIs) with new seismic.

All the surrounding wells confirm the presence of a thick Lower Jurassic source rock interval. The limited geochemical studies suggest the presence of oil prone intervals within a thicker more gas prone sequence. The agreed work programme includes an integrated geochemical study on both the maturity and richness of this source rock sequence.

The field analogues for the Molly Malone Prospects include the Sherwood Sandstone Wytch Farm Field in the UK for oil, the East Irish Sea Morecambe Gas Field and the Corrib Gas Field West of Ireland.

11.0 CLOSURE

This report has been prepared by SLR Consulting Limited with all reasonable skill, care and diligence, and taking account of the manpower and resources devoted to it by agreement with the client. Information reported herein is based on the interpretation of data collected and has been accepted in good faith as being accurate and valid.

This report is for the exclusive use of Fastnet Oil and Gas; no warranties or guarantees are expressed or should be inferred by any third parties. This report may not be relied upon by other parties without written consent from SLR.

SLR disclaims any responsibility to the client and others in respect of any matters outside the agreed scope of the work.

SLR disclaims any responsibility to the client and others in respect of any matters outside the agreed scope of the work.


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12.0 REFERENCES

Colley, M. G., McWilliams, A. S. F. & Myers, R. C. (1981) Geology of the Kinsale Head Gas Field, Celtic Sea. Ireland. In: Illing, L. V. & Hobson, G. D. (eds) Petroleum Geology of the Continental Shelf of NW Europe. Heyden, London, 504-510.

Corcoran, D. V. & Doré, A. G. (2002) Depressurisation of hydrocarbon-bearing reservoirs in exhumed basin settings: evidence form Atlantic Margin and borderland basins. In: Doré, A. G., Cartwright, J. A., Stoker. M. S., Turner, J. P. & White, N. 2002. Exhumation of the North Atlantic Margin. Geological Society. London, Special Publication 196, p. 457-483.

Craven, J. E. (1994) The Tectonic Evolution, Stratigraphy and Petroleum Potential of the Mizen Basin, S.W. Celtic Sea. In: The Petroleum Geology of Ireland’s Offshore Basins, Dublin, 21-22 April 1994. Technical Programme and Abstracts of Papers.

Croker, P. F. & Shannon, P. M. (eds) (1995) The Petroleum Geology of Ireland's Offshore Basins, Geological Society Special Publication No 93. 498 pp.

Croker P. F., Shannon P. M., Caston V. N. D. (1995) in The Petroleum Geology of Ireland’s Offshore Basins, The Helvick oil accumulation, Block 49/9, North Celtic Sea Basin, Geological Society, London, Special Publications, eds Croker P. F., Shannon P. M. 93, pp 209–225.

Doré, A. G., Corcoran, D. V. & Scotchman, I. C. (2002) Prediction of the hydrocarbon system in exhumed basins, and application to the NW European margin. In: Doré, A. G., Cartwright, J. A., Stoker. M. S., Turner, J. P. & White, N. 2002. Exhumation of the North Atlantic Margin. Geological Society. London, Special Publication 196, p. 401-429.

Enachescu, M. E. (2011) Petroleum Exploration Opportunities in Area ‘C’ - Flemish Pass / North Central Ridge - Call for Bids NL11-02. PowerPoint presentation and related material Available on website: www.nr.gov.nl.ca/nr/publications/energy/index.html

Enachescu, M. E.; Atkinson, I.; Hogg, J.; McCallum, D. and Rowe, C. (2009) Kimmeridgian Source Rock Super-Highway in the North Atlantic. Atlantic Ireland conference 2009, Dublin, October 2009.

Ewins, N. P. and Shannon, P. M. (1995) 'Sedimentology and diagenesis of the Jurassic and Cretaceous of the North Celtic Sea and Fastnet Basins' In: Croker, P. F. and Shannon, P. M. (eds) Geological Society, London, Special Publication (eds). The Petroleum Geology of Ireland's Offshore Basins No 93, pp 139-169.

Fugro Robertson Limited (2007) Competent Persons Report for Island Oil & Gas, November 2007.

Fugro Robertson Limited (2011) Evaluation of the Petroleum Assets of Atlantic Petroleum & its Subsidiary Companies. January 2011.

James Armstrong & Associates (1993) A review of petroleum geochemical data pertaining to the 56/12-1 well and an overview of the maturation history of the Mizzen Basin. Project 93/06. September 1993 for Petroceltic Plc.

McCann, T. and Shannon, P. M. (1993) 'Lower Cretaceous seismic stratigraphy and fault movement in the Celtic Sea Basin, Ireland'. First Break, 11, 335-344.

http://www.nr.gov.nl.ca/nr/publications/energy/index.html


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McCann, T. and Shannon, P. M. (1994) 'Late Mesozoic reactivation of Variscan faults in the North Celtic Sea Basin, Ireland'. Marine and Petroleum Geology, 11, 94-102.

Murphy, N.J., and Ainsworth, N. R. (1991) Stratigraphy of the Triassic, Lower Jurassic and Middle Jurassic (Aalenian) from the Fastnet Basin, offshore south-west Ireland. Marine and Petroleum Geology, 8. pp 417-419.

Murphy, N. J., Sauer, M. J. & Armstrong, J. P. (1995) Toarcian source rock potential in the North Celtic Sea Basin, offshore Ireland. In: Croker, P. F. & Shannon, P. M. (eds) 1995, The Petroleum Geology of Ireland's Offshore Basins, Geological Society Special Publication No 93, pp 193-208.

Murdoch, L. M., Musgrove, F. W. & Perry, J. S. (1995) Tertiary uplift and inversion history in the North Celtic Sea Basin and its influence on source rock maturity. In: Croker, P. F. & Shannon, P. M. (eds) 1995, The Petroleum Geology of Ireland's Offshore Basins, Geological Society Special Publication No 93, pp 297-320.

Murray, M.V. (1995) Development of small gas fields in the Kinsale Head area. In: Croker, P. & Shannon, P. (eds) Petroleum Geology of Irelands Offshore Basins. Geological Society, London, Special Publications, 93, 259-260.

Naylor, D. and Shannon, P. M. (2011) Petroleum Geology of Ireland. Dunedin Academic Press Ltd: Edinburgh. 262pp.

Naylor, D., and Shannon, P. M. (1982) Fastnet Basin. In: The Geology of Offshore Ireland and West Britain (Eds. D. Naylor and P.M. Shannon), Graham and Trotman, London, pp 49-58.

O'Reilly, C., Feely, M. and Shannon, P. M. (1997) 'A fluid inclusion study of the conditions of diagenesis of Jurassic sandstones and late sulphide mineralisation in the North Celtic Sea and Fastnet Basins' In: Hendry, J. P., Carey, P. F., Parnell, J., Ruffell, A. H. and Worden, R. H. (eds) Geofluids II '97. Anthony Rowe Ltd., Wiltshire (eds). Contributions to the Second International Conference on Fluid Evolution, Migration and Interaction in Sedimentary Basins and Orogenic Belts.

O'Reilly, C., Shannon, P. M. and Feely, M. (1998) 'A fluid inclusion study of cement and vein minerals from the Celtic Sea Basins, Offshore Ireland'. Marine and Petroleum Geology, 15, 519-533.

O'Reilly, B. M., Shannon, P. M. and Vogt, U. (1991) 'Seismic studies in the North Celtic Sea Basin: implications for basin development'. Journal of the Geological Society of London, 148, 191-195.

O’Sullivan, J., Brennan, D., Jones, S., Hardy, R. and D. Chew D. (2012) Could Early Cretaceous lignites have helped to source the giant Kinsale Head gas field, offshore Ireland? IGRM Conference 2012, UCC, Cork, Ireland.

O’Sullivan, J.M. (2001) The geology and geophysics of the SW Kinsale gas accumulation. In: Shannon, P., Haughton, R. & Corcoran, D. (eds) The Petroleum Exploration of Ireland’s Offshore Basins. Geological Society, London, Special Publications, 188, 189–199.

Redfern, J.; Shannon, P. M.; Williams, B. P. J.; Tyrrell, S., Leleu, S.; Fabuel Perez, I.; Baudon, C.; Stolfová, K.; Hodgetts, D.; van Lanen, Z.; Speksnijder, A.; Haughton, P. D. W. and Daly, J. S. (2010) 'An integrated study of Permo-Triassic basins along the North Atlantic passive margin: implications for future exploration’ In: Vining, B. A. and Pickering, S. C (eds).


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Petroleum Geology: From Mature Basins to New Frontiers - Proceedings of the 7th Petroleum Geology Conference. The Geological Society: London, 921-936.

Robinson, K. W.; Shannon, P. M. and Young, D. G. G. (1981) The Fastnet Basin: an Integrated Analysis. In: the Geology of the Continental Shelf of North Western Europe (Eds. L. V. Illing and G. D. Hobson), Heyden, London, pp 444-454.

RPS Energy (2011) A Valuation of the Celtic Sea Assets, Offshore Ireland for Lansdowne Oil & Gas plc. 27 January 2011, 73pp.

RPS Energy (2009) A Valuation of the Celtic Sea Assets, Offshore Ireland for Lansdowne Oil & Gas plc. 17 February 2009, 96pp.

Scott Pickford Ltd (2006) Competent Persons Report on Lansdowne Oil & Gas plc’s offshore Ireland Assets. 10 April 2006, 58pp.

Shannon, P.M. (1996) Current and future potential of oil and gas exploration in Ireland. In: Glennie, K. & Hurst, A (eds). AD1995 - NW Europe's Hydrocarbon Industry. London: The Geological Society.

Shannon, P. M. (1995) 'Permo-Triassic development of the Celtic Sea region, offshore Ireland' In: Boldy, S. A. R. (ed.) Geological Society, London, Special Publication, 91 (eds). Permian and Triassic Rifting in Northwest Europe.

Shannon, P. M., Haughton, P. D. W. and Corcoran, D. V. (eds) (2001) The Petroleum Exploration of Ireland's Offshore Basins. London: The Geological Society.

Shannon, P. M. and Naylor, D. (1998) 'An assessment of Irish offshore basins and petroleum plays'. Journal of Petroleum Geology, 21, 125-152.

Shannon, P. M. (1991) 'Irish offshore basins: Geological development and petroleum plays' In: Spencer, A. M. (ed.) Special Publication of the European Association of Petroleum Geoscientists, No. 1. Oxford University Press (eds). Generation, Accumulation and Production of Europe's hydrocarbons.

Shannon, P. M. and MacTiernan, B. (1993) 'Triassic prospectivity in the Celtic Sea, Ireland - A case history'. First Break, 11, 47-57.

Shannon, P. M. (1991) 'Tectonic framework and petroleum potential of the Celtic Sea, Ireland'. First Break, 9, 107-122.

Shannon, P. M. (1991) 'The development of Irish offshore sedimentary basins'. Journal of the Geological Society of London, 148, 181-189.

Sinclair, I. K., Shannon, P. M., Williams, B. P. J., Harker, S. D. and Moore, J. G. (1994) 'Tectonic control on sedimentary evolution of three North Atlantic borderland Mesozoic basins'. Basin Research, 6, 193-218.

Stolfová, K. and Shannon, P. M. (2009) 'Permo-Triassic development from Ireland to Norway: basin architecture and regional controls'. Geological Journal, 44, 6, 652-676.

Taber, D. R., Vickers, M. K. & Winn, R. D. (1995) The definition of the Albian “A” Sand reservoir fairway and aspects of associated gas accumulations in the North Celtic Sea Basin. In: Croker, P. & Shannon, P. (eds) Petroleum Geology of Irelands Offshore Basins. Geological Society, London, Special Publications, 93, 227–244.


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Tyrell, D (compiler) (2004) DTI Strategic Environmental Assessment Area 8 (SEA8).Geology and sediment processes. www.offshoresea.org.uk/consultations/SEA_8/SEA8_Geology.pdf

Tyrrell, S., Haughton, P. W. D., Souders, A. E. & Daly, J. S (2102) Large-scale, linked drainage systems in the NW European Triassic: insights from the Pb isotopic composition of detrital K-feldspar. Journal of the Geological Society, 169, pp. 279 –295. doi: 10.1144/0016-76492011-104.

http://www.offshoresea.org.uk/consultations/SEA_8/SEA8_Geology.pdf


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Appendix A -

Fastnet Oil & Gas - Data List


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Fastnet Oil & Gas - Data List

A. GEOCHEMISTRY

1. Geochemical evaluation of the 49/29-1 well. Geochem Labs June 1987.

2. Burial History reconstruction for UK well 102/29-1, South Celtic Sea Basin – hand

written with 2 burial charts dated Dec 1992 + vitrinite reflectance plots (3) + source

rock quality diagram (hand copied).

3. Burial history diagram for South Celtic Sea Basin – SP 1670, Line MPCR 84-21 –

printed – source?

4. James Armstrong & Associates – A review of petroleum geochemical data pertaining

to the 56/12-1 well and an overview of the maturation history of the Mizen Basin,

Sept 1993 for Petroceltic PLC. + extra plots generated by GENEX in Jan 1994.

B. SEISMIC DATA

5. Western Line 7212 SP 07 to 208, proc Nov 1972 for Marathon – full scale print – not

interpreted

6. Western Line 7131, SP -4 to 308, half scale. Near 49/29-1 & 58/3-1 – annotated +

photocopy annotated. Poor quality data.

7. NOPEC-Geoteam Line TRIST-92-02, South Celtic Sea- half scale. Aug 1992.

Interpreted paper print. Blocks 50/16, 50/21, 50/26, 102/27, 93/2

8. NOPEC-Geoteam Line TRIST-92-01-1, South Celtic Sea- half scale. Proc Dec 1992.

Blocks 50/26, 102/27, 102/28, 102/23, 102/24, 102/25, 103/21. Paper print – largely

uninterpreted. + copy of left end showing “source kitchen”

9. Geoteam Line ARD93-04 reduced from half scale with crude interpretation. SP 450-

1084 + photocopy with sketch interpretation.

10. Geoteam Line ARD93-04, SP 10-1084. Shot May 1993 for Ardmore Expl. Full scale.

Proc Digital Expl Oct 93. Paper print interpreted. + photocopies of 2 sections with

another interpretation

11. Geoteam Line ARD93-06 & 6A, SP 1010-1731 & 10-502. Shot May 1993 for

Ardmore Expl. Full scale. Proc Digital Expl Oct 93. Paper print interpreted and

annotated + photocopy with interpretation

12. Merlin Line MP84CE-03/1, SP 101-500, Spring 1984. Blocks 41 & 50 – half scale.

Interpreted paper print.

13. Merlin Line MPCR84-21, SP 101-1899, Spring 1984. South Celtic Sea – Irish block

49 to UK block 93 – full scale. Interpreted paper print through wells.

14. Merlin Line MPCR84-21, SP 101-1899, Spring 1984. South Celtic Sea – Irish block

49 to UK block 93 – half scale. Interpreted paper print through wells.

15. Merlin Line MP84CD-59 through UK blocks 102/23, 102/28, 102/28 & 93/4. Half

scale. Interpreted paper print.

16. Merlin Line MP84CD-16, SP 101-3945. Spring 1984. South Celtic Sea. Half scale.

Interpreted paper print + photo copy of section annotated


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17. Merlin Line MP84CD-16, SP 101-3945. Spring 1984. South Celtic Sea. Full scale.

Paper print – largely uninterpreted.

18. Merlin Line MP84CE-5/2, SP 101-500 (CSR-27A). Spring 1984. South Celtic Sea.

Half scale. Paper print – interpreted. + photocopy of another interpretation

19. Merlin Line MP84CE-1/1, SP 101-580. Spring 1984. South Celtic Sea. Half scale.

Paper print – interpreted + photocopy showing section through Molly Malone South &

North and juxtaposition of Lias and Trias sands.

20. Merlin Line MP84CD-63, SP 101-3000. Spring 1984. South Celtic Sea. Full scale.

Paper print – uninterpreted. Block 93.

21. Merlin Line MP84CD-63, SP 101-3000. Spring 1984. South Celtic Sea. Half scale.

Paper print – uninterpreted. Block 93. + photocopy annotated.

22. Merlin Line MPCR84-19 & 19/1, SP 101-3200. NW-SE line across South Celtic Sae

Basin, Pembroke High and into North Celtic Sea Basin. Half scale. Interpreted

paper print + annotated section through Molly Malone North & South.

23. Merlin Line SP83-10, SP 101-1685. Nov 1983. South Celtic Sea. Half scale. Paper

print – uninterpreted.

24. Fig 15 Cities Service Line CSF80-22 showing location of well 63/10-1. Fastnet

Basin.

25. Ensign Geophysics Line MU87-08 drafted up as “Triassic structural style and

depositional geometry of St Bees Sst, Mizen Basin at scale of 1:50,000 + photocopy

of Line MU87-08 with annotation.

26. Ensign Geophysics Line MU87-03, SP 101-659, shot for Murphy Oil Aug 1987, full

scale, interpreted + photocopy with new interpretation.

27. Ensign Geophysics Line MU87-11, SP 101-917, shot for Murphy Oil Aug 1987 with

some old annotation + photocopy of Line MU87-11 with new annotation. Plus

another photocopy through 56/12-1 annotated.

28. Photocopy of seismic line through 56/12-1, interpreted and annotated (no line

number)

29. GECO Line IRL610-17, SP 100-1470, shot May 1986. Full scale. Paper print

interpreted and annotated. + photocopy showing Base Lower Wealden erosion

surface with channel fill.

30. SSI Line PC91-05, block 55/15, shot May 1991 for Petroceltic. Full scale. Paper

print interpreted. + photocopy annotated.

31. SSI Line PC91-09, block 55/15, SP 1-790, shot May 1991 for Petroceltic. Full scale.

Paper print interpreted. + photocopy annotated.

32. SSI Line PC91-08 & 8A, block 55/15, SP 10-988, shot May 1991 for Petroceltic. Full

scale. Paper print part interpreted. + photocopy annotated.


Paper print part interpreted. + photocopy annotated.


Paper print interpreted. + photocopy annotated.


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Paper print part interpreted + one fully interpreted. + photocopy annotated.


Paper print part interpreted.

C. MAPS

37. Mizzen Block – Top Middle Purbeck map at 1:50,000 scale – hand drawn Jan 1993.

38. Mizzen Block – Top Hettangian Limestone at 1:50,000 scale – hand drawn (scanned

as PDF & JPG)

39. Molly Malone Block – Top Sherwood Sandstone at 1:50,000 scale – hand drawn

(scanned as PDF & JPG)

D. WELL DATA

E. Composite log 93/2-2 showing Triassic section

F. Composite log 55/30-1 showing Sherwood Sandstone section

G. Mud Log 56/16-1 showing gas readings 6200’ – 6350’ – subtle structural closure

H. Composite log 56/12-1 showing gas shows in Valanginian sequence.

I. Composite log 56/12-1 showing Base Wealden and Top Purbeck – annotated

J. Composite log 56/12-1 showing gas shows in Hauterivian sequence.

K. IHS well data for 56/9-1, 56/15-1, 56/20-1, 55/30-1, 49/29-1, 58/3-1, 49/30-1, 56/12-

1, 47/29-1, 62/7-1, 63/8-1, 63/4-1, 63/10-1, 102/28-1, 102/29-1, 93/2-1, 93/2-2 &

93/2-3.

L. OTHER DATA

40. Section across Mizzen L-11 & Mizzen O-16 offshore Newfoundland from GeoExpro

March 2011

41. Fig IV.17 showing habitat of Hibernia Oil Discovery, Jeanne D-Arc Basin Canada.

42. Official licence awards by PAD for Molly Malone and Mizzen Licencing Options.

M. Davies

3rd July 2012

Revised 18th July 2012

Drawing 01 Map of Celtic Sea showing location of current licences, gas fields (in red), gas pipeline network and the Molly Malone Licence Option

Drawing 02 Map of the area around the Molly Malone Licence Option showing outlines of geological basins, well locations, neighbouring licences and key seismic lines.

Drawing 03 Summarised well log for Marathon 49/29-1



Drawing 06 Summarised well log for BP 92/2-3

Drawing 07 Summarised well log for BP 93/2-1

Drawing 08 Map of Celtic Sea basins showing some of the key wells and oil and gas fields (after Naylor & Shannon 2011).

Drawing 09 Cross section of the North and South Celtic Sea basins (Tappin et al 1994, Tyrell 2004).

Drawing 10 Generalized stratigraphic column of the North Celtic Sea Basin showing major tectonic episodes and relative sea-level fluctuations (after Shannon & MacTiernan 1993

Drawing 11 Interpretations of portions of seismic lines from the northeast part of the South Celtic Sea Basin (a) courtesy of Western Geophysical, (b) courtesy of Geco-Prakla), showing the strong Base Sherwood Sandstone Group (SSG) reflector pinching out against the Top SSG reflector over less than 2 km filling a topographic valley..On poor data, these relationships could be misinterpreted as active faulting. The flat events below the Base SSG reflector are believed to be multiples. A well along strike on the

palaeohigh of (b) confirms the absence of the SSG (Musgrove, Murdoch & Lenehan 1995).

Drawing 12 Portions of a seismic line from the southern portion of the South Celtic Sea Basin (courtesy of Geco-Prakla). (a) Interpreted data through a well which penetrated a mobile saliferous section and a thick Sherwood Sandstone Group. The latter does not show thickening across faults or divergence of the reflectors that would indicate syn-rift deposition. (b) Enlargement around a fault of the area in the box of (a) that shows the reflector divergence and thickening in the Mercia Mudstone Group saliferous units

(Musgrove, Murdoch & Lenehan 1995).

Drawing 13 South Celtic Sea seismic profile showing Triassic salt pillow structure. Salt movement took place in mid-Lower Jurassic time coincident with growth fault movement (after Naylor & Shannon 2011)

Drawing 14 Schematic palaeogeographical reconstruction of the Middle Triassic showing the distribution of massifs and sedimentary basins, with potential K-feldspar sources highlighted. Also highlighted are potential drainage directions and sedimentary input points for the ‘Budleighensis’ system and for the Triassic basins more marginal to NW Europe (after Tyrrell et al. 2010). The approximate palaeogeographical location of Pb basement data is shown; B&C, Brittany and Cornwall granites; BfG, Barfleur Granite; BrG, Brech Granite; CG, Carnsore Granite; ClG, Carrolles Granite; FmG, Flamanville Granite, FMC, French Massif Central granites; LEG, Land’s End Granite; LnG, Leinster Granite; MmS, Mullaghmore Sandstone Formation; PB, Pennine Basin; Py, Pyrenees Granites; ShG, Shap Granite; SIga, southern Ireland galena data; SUG, Southern Uplands granites; RC, Rosslare Complex (Tyrrell et al 2012).

Drawing 15 Detailed map of Molly Malone Licence Option showing Molly Malone North & South prospects, seismic lines shown in Drawings 14 & 15 and nearby wells

Drawing 16 Schematic block diagram showing the distribution of uplands in the Middle Triassic, with suggested drainage routes and sediment storage areas highlighted. The block diagram shows that there is major topography within the remnant Variscan uplands and perhaps within the Greenland Massif, but that the topography of the Scottish and Irish massifs is relatively subdued. The Scottish and Irish massifs act as a drainage divide separating systems influenced by the Variscan uplands from those with no Variscan input (Tyrrell et al 2012)

Drawing 17 Toarcian (Lower Jurassic) thickness map based on seismic and well control. The two wells in south centre are in the South Celtic Sea Basin. Hydrocarbon potential of Toarcian source rock is indicated: G gas-prone; M mixed potential; O oil-prone (after Naylor & Shannon 2011)

Drawing 18 Distribution of Lower Jurassic Toarcian source rocks offshore Ireland and UK (from Scotchman 2001)

Drawing 19 Distribution of Jurassic source rocks in UK sector of the South Celtic Sea Basin and adjacent areas (Tyrell 2004)

Drawing 20 NW-SE geoseismic section along seismic line MP84CE-01 through Molly Malone North & South tilted fault block prospects. Note juxtaposition of Lower Jurassic source rock in SE against Triassic Sherwood Sandstone reservoir in NW

Drawing 21 NW-SE Seismic Line MP84CD-59 showing typical South Celtic Sea Basin fault block structures in adjacent UK waters. The large tilted fault block at SP 2600 was tested by UK well 102/28-2 but the Sherwood Sandstone was poorly developed. Note again the juxtaposition of Lower Jurassic source rock against Triassic Sherwood

Sandstone reservoir.

Documents

Independent Technical Evaluation Report on the Molly .../media/files/f/fastnet-oil-and-gas/financial-and-other...Fastnet Oil and Gas (“Fastnet”) was established following the reverse