Agreement

RNS Number : 6169V

Portland Gas plc

14 July 2009

 



For Immediate Release

14 July 2009

Portland Gas

Agreements with Hydrock Group Limited and Portland Port Limited

The Directors of Portland Gas plc (AIM: PTG) ('the Company' or 'Portland Gas') today announce that they have reached agreement with Hydrock Group Limited ('Hydrock') to undertake work to a value of £300,000 on the Portland Project. This will be funded by a redeemable debenture granted to Hydrock. Under the terms of the debenture the Company may redeem the instrument until 31st January 2010 beyond which it is converted into 369,595 ordinary shares in Portland Gas plc. 

The Company announces that is has also reached agreement with Portland Port Limited regarding the settlement of existing liabilities in relation to the Company's lease of land adjacent to the site of the gas storage facilities. The agreement settles all outstanding accrued liabilities for the East Weares estate up to 31st July 2009 by the issue of 919,474 new ordinary shares in the Company. As part of the agreement, future East Weares lease payments will be deferred by Portland Gas until the project is funded, apart from £10,000 per month which continues to be payable in cash.

Both of the above agreements are based on an issue price of 81.17p per share, equivalent to the average closing price of a Portland Gas share over the period 8th - 10th July 2009.

Application will be made for the admission to trading on AIM of 919,474 new ordinary shares in the capital of the Company and dealings are expected to commence on 23rd July 2009.

For further information please contact:

Portland Gas plc

Andrew Hindle, Chief Executive Officer  Craig Gouws, Chief Financial Officer	020 8332 1200
Nominated Advisor and Broker - Seymour Pierce
Jonathan Wright Sarah Jacobs	020 7107 8000

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