LONDON (Alliance News) - Petroleum exploration and gas storage company Infrastrata PLC saw its shares fall in early trade on Tuesday after it said one of the participants providing funding for the Woodburn Forst-1 well in Northern Ireland has backed out of the project.
Infrastrata said Larne Oil and Gas Ltd, which exercised an option to participate in the PL1/10 licence in September last year, has "run into funding difficulties" and will not be participating in the project.
As a result, the holdings in the project will revert to the pre-farm-out levels of 45% for Infrastrata.
The terms of Larne's exit are currently being resolved, but the partners on the project are now seeking to secure around GBP2.8 million in funding in order to ensure the well is drilled in the winter.
In addition, the licence holders have entered a data exchange agreement with Islandmagee Storage Ltd, which is 65%-owned by Infrastrata. Under the terms of the deal, the group will share the results of the 2012 2D seismic survey, which includes data from the wider Islandmagee area, and the Woodburn Forest-1 data in return for access to the data from the Islandmagee-1 well.
Infrastrata shares were down 31% on the news to 1.4589 pence, the worst performer in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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