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If Infa release any sort of good news now to keep Malcy's blog momentum up, we will fly pat 1p this week!
I'm sure JW was holding back in Malcys interview so the news can be released in a steady continuous stream.
The news I'm thinking of is developments in the financial talks, which to me sound as if the groundwork for those talks have already been done....hints in previous AP interviews...they wouldn't have stood still since then!
Happy days!
GLA

'Infrastrata
Last week I met with Graham Lyon, Chairman and John Wood, CEO of Infrastrata the UK listed stock which is dedicated to developing the Islandmagee Gas Storage Project of multiple salt caverns. Investors will have noticed that Adrian Pocock, until recently CEO, was responsible for the change of management and fundamental change in the company’s fortunes is staying on the board as Business Development Director. The company fights well above its weight at board level with its CFO Andy Duncan and non-execs Matthew Beardmore and Arun Raman on board.

The project has been granted the status of Project of Common Interest by the EU which opens up grant funding, accelerated permitting procedures and ‘inventivised regulatory conditions’. The importance of the project to both the UK including Northern Ireland and the Republic of Ireland has led to support from both countries and awarded the UK guarantee scheme status, giving access to Government Guarantees on debt finance for 65% of the project cost.

All these things are of significant importance as whilst the technical nature of completing the caverns and making the project work it is the financing that will make or break the company. The first piece of the jigsaw is to get an arrangement with a leading trader who can ensure that the gas is traded with both it and the company getting a fair part of the action. This would also likely secure the completion of the first two of the caverns giving scope for the company to develop several more at a later date.

I say piece of the jigsaw as the funding process for Infrastrata will have to be creative whilst getting all funding partners into place conditional on each other. A partial farm-out to, say a pension fund, with long term requirements for income offset against liabilities would lead to the company keeping some of the project leaving it able to develop other similar challenges in the space. This would avoid dilution at PLC level which pension fund investors would find preferable.

The good thing is that along with a top quality management team in place a good deal of the FEED milestones have already been met and with a team of industry leading teams as partners work is already well under way. I like the look of the project economics and as readers will know have been exasperated in recent years as gas storage has been ignored in the UK as it is not only of national importance but also incredibly profitable. Just consider how much Islandmagee would have made just this last February when gas prices soared and the UK imported expensive LNG from Qatar and other sources. I look forward to watching Infrastrata over the next few months and think that investors should keep it on the radar screen.'

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