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LONDON (Alliance News) - Infrastrata PLC Tuesday said BP Gas Marketing Ltd has decided to relinquish its option to acquire 50.495% of the shares of Islandmagee Storage Ltd.
The petroleum exploration and gas storage company, with operations in the UK, said BP Gas Marketing, a subsidiary of UK oil major BP PLC, made the decision following a review of its European-wide gas assets portfolio and will no longer have any participation in the Islandmagee project in Northern Ireland.
Infrastrata said that the funding from BP Gas Marketing over the past two years has enabled the site to progress significantly, including securing land rights, planning permission, and capital investment, along with sub-surface and pipeline leases with the Crown Estate.
Infrastrata said that the funds invested by BP Gas Marketing have left the site in a position to cover Islandmagee Storage's existing commitments and leave sufficient funds to secure the project until there is new funding to develop the project further.
The company said that discussions will commence shortly with potential new investors.
Infrastrata said a total of roughly GBP5 million has been invested in the project since its inception in 2007, and it is estimated that a further GBP4 million will need to be invested to move the project forward to a financial-investment decision point.
Infrastrata has a 65% holding in the Islandmagee site through its shareholding in Islandmagee Storage Ltd, while Moyle Investments Ltd holds the remaining 35%.
Infrastrata shares were down 22% to 10.70pence, putting them top of the AIM fallers in early trading Tuesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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