Exclusivity Agreement signed - Islandmagee Project

RNS Number : 7010O

Infrastrata PLC

22 September 2011

 



For Immediate Release                                                                             22 September 2011                                                                               

InfraStrata plc

("InfraStrata" or the "Company")

Exclusivity Agreement signed for Islandmagee Gas Storage Project

InfraStrata plc (AIM:INFA) the independent gas storage and petroleum exploration company is pleased to announce that, together with Moyle Energy Investments Limited ("Moyle"), the Company has entered into exclusive negotiations with a major energy company ("Potential Partner") regarding the appraisal of the Islandmagee gas storage facility development project in County Antrim, and the option to acquire an equity interest in Islandmagee Storage Limited ("IMSL"), the gas storage developer in Northern Ireland owned by InfraStrata (65%) and Moyle (35%).

Under the terms of an Exclusivity Agreement the Potential Partner has committed to pay a consideration of £200,000, which will be used to complete part of the land purchase for the Islandmagee gas storage project.

The Potential Partner has been granted until 31 January 2012 to finalise terms with InfraStrata and Moyle, whereby the Potential Partner will fund the activities necessary to develop the project up to the point where a decision can be made on whether to proceed with construction of the project, and, in return, will be granted an option to acquire a significant equity interest in the project once these activities have been completed.

For further information please contact:

InfraStrata plc

Andrew Hindle, Chief Executive Officer                                                            020 8332 1200

Craig Gouws, Chief Financial Officer

Financial PR - Buchanan

Richard Darby                                                                                              020 7466 5000

James Strong

Gabriella Clinkard

Nominated Advisor and Broker - Seymour Pierce

Jonathan Wright/ Jeremy Porter - Corporate Finance                                      020 7107 8000

Richard Redmayne - Corporate Broking

Notes to Editors:

Background on InfraStrata plc

InfraStrata is an independent gas storage and petroleum exploration company. The Company is focused on two areas in the UK, in Dorset, England and Antrim, Northern Ireland.

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

Background on the Islandmagee Gas Storage Project

The proposed 500mcm (18 bcf) gas storage facility will be the largest on the island of Ireland and make a significant contribution to the security of gas supplies in UK and Ireland. InfraStrata plc has a 65% interest in the project. Its partner in the project is a subsidiary of Mutual Energy Limited, the owner of the Scotland to Northern Ireland gas pipeline. A planning application was submitted in March 2010 to the Northern Ireland Planning Service.

Further information is available on the project website www.islandmageestorage.com.

In accordance with the AIM Rules - Note for Mining and Oil and Gas Companies, the information contained in this announcement has been reviewed and signed off by the Chief Executive Officer of InfraStrata plc Dr Andrew Hindle, a Chartered Geologist with over 25 years' experience.

 

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