Islandmagee signs new EU Grant Agreement

RNS Number : 8166C

Infrastrata PLC

30 June 2016

 

30 June 2016                                                               

InfraStrata plc

("InfraStrata" or the "Company")

Islandmagee signs new EU Grant Agreement

InfraStrata plc (AIM:INFA), the independent petroleum exploration and gas storage company, is pleased to announce it has now concluded a grant agreement with the European Commission under the Connecting Europe Facility ("CEF") for 50%, up to a maximum of €4.024 million, of the costs associated with the Front End Engineering & Design ("FEED") for its Islandmagee gas storage project (the "Project") under development in County Antrim, Northern Ireland.

The Project is being developed in a joint venture between InfraStrata (65%) and local energy infrastructure company Mutual Energy Limited ("MEL") (35%).

The Company is working with MEL and advisers, as part of an ongoing process announced in March 2016, to secure the new investors who will take this strategically important project through to a Final Investment Decision, targeted for 2017.

The Company is focused on delivering the best outcome for its shareholders by securing new investors over the summer months to enable the FEED to proceed as programmed and to meet other project commitments as they fall due, including land option payments, adviser and project management costs. Discussions are ongoing with interested parties and further updates will be provided as appropriate.    

As previously stated, InfraStrata has sufficient cash resources to cover its anticipated project management and administrative expenditure to the end of December 2016.   

Commenting on the announcement, Andrew Hindle, CEO of InfraStrata said:

"We are delighted by the continuing support of the European Commission's CEF programme for the Islandmagee gas storage project. The project will be important for years to come in providing security to gas and electricity supplies on the island of Ireland, in Great Britain and the wider European networks. 

The grant support is available by virtue of the project's Project of Common Interest ("PCI") status afforded by the European Union and recognising the importance of the project to European energy security. In the context of the island of Ireland, the Project, as well as providing security of gas supplies, will support gas-fired power generation back-up for the roll-out of increased intermittent renewable power generation across the island and thereby help the UK and Ireland meet their carbon reduction targets.

The Company considers that it is premature at this time to make any statement on any longer term impact on the project's PCI status in the context of the UK referendum result on 23 June and we will continue to engage with the European Commission on the progression of the FEED programme and the project's development as before." 

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."

For further information please contact:

InfraStrata plc

Andrew Hindle, Chief Executive Officer                                                                   020 8332 1200

Stewart McGarrity, Finance Director

Nominated Adviser and Broker - Allenby Capital Limited

Jeremy Porter / Alex Brearley / Liz Kirchner                                                           020 3328 5656

Financial PR - Camarco

Billy Clegg / Gordon Poole                                                                                      020 3757 4980

Notes to Editors:

Background on InfraStrata plc

InfraStrata is an independent petroleum exploration and gas storage company focused on Northern 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 owned 65% by a wholly owned subsidiary of InfraStrata plc and 35% by a wholly owned subsidiary of Mutual Energy Limited. 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 October 2013, the gas storage project was granted a 'Project of Common Interest' ("PCI") status by the European Commission.

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

 

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