Announcement regarding Islandmagee

RNS Number : 3078Z

Baron Oil PLC

25 May 2016

 

25 May 2016

Baron Oil plc

("Baron" or "the Company")

Announcement regarding Islandmagee salt core programme

The Board of Baron notes the announcement released today by InfraStrata plc ("InfraStrata") regarding the receipt of the balancing €1.75 million grant monies from the EU for the Islandmagee salt core programme in Northern Ireland. Baron signed a Convertible Loan Facility Agreement signed with InfraStrata in May 2015.

The InfraStrata announcement is repeated in full below:

"Islandmagee salt core programme - receipt of final €1.75 million grant monies

The Board of InfraStrata plc (AIM:INFA), the independent petroleum exploration and gas storage company, is pleased to announce that following submission of final reports to the EU on the Islandmagee gas storage project, the balancing €1.75 million grant monies have now been received from the EU.

Under the terms of the Convertible Loan Facility Agreement signed with Baron Oil plc ("Baron") in May 2015, this cash balance will now be placed into an escrow arrangement as security for the €1.8 million bridging finance provided by Baron, which now has a first repayment date of 1 August 2016.

Baron has an accompanying option until 31 March 2017 (or until the loan is repaid if that is earlier) to convert the loan balance into a 15% equity participation in the share capital of InfraStrata's subsidiary, Islandmagee Storage Limited ("IMSL") (the owner of the gas storage project). Should the option be exercised, the equity would be provided pro-rata by InfraStrata, currently 65% interest, and its project partner, Moyle Energy Investments Limited ("Moyle"), currently 35% interest."

For further information:

Baron Oil Plc

Bill Colvin (Chairman & CEO)                                         Tel: [phone]

Cantor Fitzgerald Europe 

Nominated Adviser and Broker

Sarah Wharry (Corporate Finance)                                 Tel:  [phone]

 

END

 

 

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