InfraStrata plc (AIM:INFA), the independent gas storage and petroleum exploration company, announces that the Company has signed a Restructuring Agreement with eCORP Oil & Gas UK Limited ("eCORP") (a subsidiary of eCORP International, LLC), following a refocusing of eCORP's European operations.
The provisions of the Restructuring Agreement include the following:
· eCORP's 50% interest in Portland Gas Limited ("PGL") has been converted into preference shares and eCORP's former funding obligations have been restructured into an obligation to subscribe a further US$2.88 million for further preference shares over the next two years. The preference shares will provide eCORP with a 7.5% share of the future profits distributed by PGL. Following the restructuring, InfraStrata UK Limited, a wholly owned subsidiary of InfraStrata, now holds 100% of the ordinary shares in PGL;
· InfraStrata has acquired eCORP's 50% interest in the 26th Round petroleum exploration licence P1918, offshore Dorset (increasing the Company's direct interest to 78%). In return InfraStrata has granted eCORP a 7.5% share of the future profits generated on the acquired licence interest;
An agreement has also been reached with Portland Port Limited to modify the existing leases at the Portland site. These modifications include permission for a wider range of uses of the land, such as the generation and export of electricity, carbon capture & storage ("CCS"), salt production and export, and the siting of petroleum production facilities. A restructuring of lease payments has also been agreed, with immediate effect, whereby the rental payments in the early years are reduced, but could be higher in the longer term if there are multiple uses of the land. There is also flexibility for Portland Gas to terminate the leases during the next five years.
Commenting on the Agreements, Andrew Hindle, CEO of InfraStrata plc said:
"eCORP's financial support of £1.7 million over the past two years has enabled us to secure the future of the Portland Project and their ongoing funding commitment of US$2.88 million (approximately £1.8 million) will assist InfraStrata in unlocking value in the project for both eCORP and InfraStrata shareholders. This, coupled with the restructuring of our relationship with the Portland Port, will better align both InfraStrata's and the Port's interests in the potential of the Portland site. We are now able to look at a much wider range of options for the site while building on the existing infrastructure consents for the gas storage project.
In our recent Interim Report, we stated that we intend to submit a bid on behalf of the Portland Project in the CCS Commercialisation Programme of the Department of Energy and Climate Change. Within this submission the modified project would see CO2 captured in caverns offshore adjacent to the Portland site from power generation at the site."
For further information please contact:
020 8332 1200
Andrew Hindle, Chief Executive Officer
Craig Gouws, Chief Financial Officer
Financial PR - Buchanan
020 7466 5000
Richard Darby/Gabriella Clinkard
Nominated Advisor and Broker - Seymour Pierce
020 7107 8000
Jonathan Wright - Corporate Finance
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.
Background on Portland Project
Planning permission was granted by Dorset County Council in May 2008 for a 1000 million cubic metre gas storage facility.The planning permission for the project also includes the construction of gas-fired power generation capacity at the Portland site and permission to construct a 36inch gas pipeline to connect to the National Transmission System at Mappowder in North Dorset.
Background on 26th Round exploration licence
The licence P1819 covers three offshore Blocks 97/14, 97/15 and 98/11, covering an area of 573 square kilometres adjacent to the Dorset coast close to the giant Wytch Farm oilfield. The licence is in the process of being awarded with an initial licence term of four years from 1 February 2012, with a decision on drilling a well required within the first two years. Subject to DECC approvals, a 12% licence interest will be assigned from InfraStrata to Corfe Energy Limited (of which InfraStrata is a shareholder) and 10% to Nautical Petroleum plc.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk!
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.