Legal Agreement with eCORP

RNS Number : 7631T

Infrastrata PLC

04 October 2010

 



For Immediate Release

4 October 2010

Infrastrata

 Legal agreements with eCORP completed for the Portland project

Further to the announcement made on 29 June 2010, the Directors of Infrastrata plc (AIM: INFA) ("Infrastrata" or "the Company") are pleased to announce that legal agreements have been completed with US independent energy company eCORP International, LLC ("eCORP") relating to Infrastrata's interests in the Portland gas storage project.

A subsidiary of eCORP, eCORP Oil & Gas UK Limited, has acquired rights to 50% of the share capital of the project company, Portland Gas Limited, in return for funding the next £22.9 million in the project to match the project expenditure invested to date by Infrastrata. The Company, through its subsidiary Infrastrata UK Limited, will retain 50% of the share capital in Portland Gas Limited.

These funds will be used to develop the Portland Project further before bringing it to market. Under the terms of the agreement with eCORP, the drilling of the first cavern well during 2011 will be the initial activity. Data will be acquired to better define the pressure ranges over which the caverns can be operated to maximise the responsiveness of the caverns to short term gas demand requirements (the 'extrinsic value' of the project) and finalise elements of the cavern design. Infrastrata and eCORP will jointly provide Portland Gas Limited with technical services.

Infrastrata and eCORP are also progressing agreements relating to the Company's projects in Northern Ireland, Germany and Spain, as mentioned in the June 2010 announcement. The Company expects to conclude these agreements with eCORP prior to the end of 2010.

Commenting on the news, Andrew Hindle, CEO of Infrastrata plc said:

"We are excited about moving into a new phase in the development of the Company with the partnership.

Now that the agreements are completed for Portland Gas Limited, we look forward to progressing plans with stakeholders to move the Portland Project forward. We expect the major work on the ground to start with construction of the wellpad next spring."

For further information please contact:

Infrastrata plc Andrew Hindle, Chief Executive Officer Craig Gouws, Chief Financial Officer	020 8332 1200
Financial PR - Buchanan Communications Richard Darby James Strong	020 7466 5000
Nominated Advisor and Broker - Seymour Pierce Jonathan Wright Richard Redmayne	020 7107 8000

Notes to Editors:

Background on Infrastrata plc

Infrastrata's business is focused on the development of two gas storage projects in the United Kingdom at Portland, Dorset and at Islandmagee, County Antrim, Northern Ireland. The two projects could between them provide over 10% of the total UK and Ireland peak daily demand in the latter part of the next decade.  The Company is also developing new projects in mainland Europe initially focussing on Germany and Spain.

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

Background on eCORP International, LLC

eCORP International, LLC is a Delaware limited liability company based in Houston, Texas and London, England. The eCORP companies develop, operate and own natural gas storage facilities, and develop and explore conventional and unconventional natural gas prospects in the US and Internationally. eCORP has been engaged in the research and development of unconventional hydrocarbon production since 1979. eCORP has been engaged in the development and operation of independently owned natural gas storage facilities and related assets since 1984.

eCORP and its principals and affiliates have been involved in the development of several significant projects, including the following: 1) Bammel Field, Houston, Texas, 2) Rotherwood Storage Facility, Houston, Texas, 3) Katy Storage Project and Market Center, Houston, Texas, 4) Stuart Natural Gas Storage Facility, Southeast Oklahoma. 5) Stagecoach Natural Gas Storage Facility, Tioga County New York, and 6) Junction Natural Gas Storage Facility, Southwest Pennsylvania.

Further information is available on the Company's website www.ecorpusa.com.

Background on Portland Project

At a projected 1,000 million cubic metres ("mcm") or 35 billion cubic feet ("bcf") of working gas, the facility would be the largest of the publically announced onshore gas storage facilities in the UK. The project has been granted planning permission by Dorset County Council and Pipeline Construction Authorisation by the Department of Energy and Climate Change. The gas storage facility is designed to inject or withdraw gas at 20mcm per day. The total development cost for the project is approximately £450m. Further information is available on the website www.portland-gas.com.

 

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