Disposal-Legacy Hydrocarbon Exploration Interests

RNS Number : 6157C

Infrastrata PLC

02 October 2018

 

2 October 2018

InfraStrata plc

("InfraStrata" or the "Company")

Disposal of Legacy Hydrocarbon Exploration Interests - Focus on Core Business

InfraStrata plc (AIM: INFA), the only UK AIM listed company focused on gas storage, is pleased to announce the disposal of its net profits interests in three offshore UK oil and gas licences (the "Net Profits Interests") to Westmount Energy Limited.

This follows the Company's announcement of 16 November 2015, where the Board (as then constituted) announced that InfraStrata would retain Net Profits Interests of 0.5% in P1918, 0.5% of P2222 and 1.0% of P2235, together with associated future profits agreements.  No value was ascribed to the Net Profits Interests in the Company's most recently published annual accounts for the year ended 31 July 2017.

The decision to dispose of the Net Profits Interests was taken following the Board's recent commitment to focus on developing energy-related infrastructure projects.

John Wood, Chief Executive Officer of InfraStrata plc, commented: "The focus of the Company is on completing our Islandmagee gas storage project and developing energy-related infrastructure projects; exploration is no longer in our strategic plan so disposal of these interests to increase working capital is the correct choice for us as we continue to evolve."

For further information, please contact:

InfraStrata plc John Wood, Chief Executive	c/o Yellow Jersey [phone]
Allenby Capital Limited (AIM Nominated Adviser & Joint Broker) Jeremy Porter / Alex Brearley / Liz Kirchner	[phone]
SI Capital Limited (Joint Broker) Nick Emerson	[phone]
Yellow Jersey Tim Thompson	[phone]

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Notes:

InfraStrata is an independent gas storage company focused on the UK and Ireland. Further information is available on the Company's website: www.infrastrata.co.uk.

Background on the Islandmagee Storage Project

The Islandmagee gas storage project is a proposed salt cavern gas storage facility located on Islandmagee in County Antrim, Northern Ireland. The Board of InfraStrata believes that the proposed 500 million cubic metres Natural Gas Cavern Storage facility will provide over 25% of the UK's Natural Gas Storage once constructed, and will be situated adjacent to the Scotland Northern Ireland (gas) Pipeline (SNIP) and the Moyle 500 Megawatt Electricity Interconnector. Work commenced in 2007 with the acquisition of 3D seismic data to image the Permian salt in the Larne Lough area. During 2012, planning permission was granted for the project and a gas storage licence was issued by the Utility Regulator. In 2015 a well was drilled to core the salt and confirm the technical feasibility of the project, supported in part by the European Commission. The Front End Engineering and Design (FEED) element of the Project is scheduled for completion by the end of 2018. To date approximately £11.5m has been invested in the project.

Further information is available on the company's website: www.infrastrata.co.uk

The Front End Engineering & Design (FEED) and Insitu Downhole Testing programme for the Islandmagee gas storage project is co-financed by the European Union's Connecting Europe Facility.

Disclaimer releasing the European Union from any liability in terms of the content of the dissemination materials:

"The sole responsibility of this publication lies with the author. The European Union is not responsible for any use that may be made of the information contained therein."

 

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