Last checked at 18 Jun 2015 07:30
18 June 2015
Baron Oil plc
("Baron Oil" or "the Company")
Results of Islandmagee-1 well
Baron Oil notes the announcement released this morning by InfraStrata plc ("InfraStrata"), regarding the conclusion of drilling and data gathering operations at the Islandmagee-1 well in Northern Ireland.
The full text of today's announcement from InfraStrata follows:
"InfraStrata plc (AIM:INFA), the independent petroleum exploration and gas storage company, is pleased to announce that drilling and data gathering operations have been concluded at the Islandmagee-1 well in Northern Ireland.
The well was drilled to a total depth of 1,753 metres.
The objective of the well was to confirm the feasibility of the development of an underground gas storage facility in salt caverns, by obtaining wireline data and core samples of the Permian salt to undertake laboratory analyses, including rock mechanical tests, to further define the design parameters and cost estimate for the project.
The first element of the work has met its objectives with the well encountering 185.8 metres of Permian salt. Core samples have been sent to Germany for analyses to be undertaken.
These results will enable the project developer, Islandmagee Storage Limited (InfraStrata 65% shareholder), to complete this phase of work in Q4 2015.
The costs of this 2015 work programme are being funded 50% by the European Commission under their Connecting Europe Facility."
Commenting on the announcement, Bill Colvin, Chairman and Chief Executive of Baron Oil said:
"The Board are delighted with the successful salt appraisal well outcome and were impressed by the safe, efficient and professional manner in which this crucial appraisal well was drilled by the InfraStrata team. We now look forward to further significant progress later this year towards a development decision for this large and important energy infrastructure project for Ireland and the UK.
The Board continue to believe this project on Islandmagee, adjacent to the largest power station in Northern Ireland and also the UK Gas and Electricity Inter-connector outlets, has substantial commercial value".
For further information on the Company visit www.baronoilplc.com or contact:
Baron Oil plc Bill Colvin, Chairman and Chief Executive
| +44 (0)7780 684 108 |
Cantor Fitzgerald Europe (Nomad and Broker) Sarah Wharry, Corporate Finance Richard Redmayne, Corporate Broking | +44 (0)20 7894 7000 |
Background on the Islandmagee Storage Project
The Islandmagee gas storage project is owned 65% by a wholly subsidiary of InfraStrata plc and 35% by a wholly owned subsidiary of Mutual Energy Limited. Work commenced in 2007 with the acquisition of 3D seismic data to image the Permian salt in the Larne Lough area. During 2012, planning permission was granted for the project and a gas storage licence was issued by the Utility Regulator. In October 2013, the gas storage project was granted a 'Project of Common Interest' ("PCI") status by the European Commission. PCI status means recognition by the European authorities that the Islandmagee gas storage project brings benefits not only to the Member State in which it is located, but to a much wider area. The next investment step in the project is the drilling of the data gathering well (Islandmagee-1) to approximately 1,700 metres depth to obtain cores of the salt sequence and subsequently undertake further engineering design work. This €5 million work programme is being funded 50% by the European Commission under the Connecting Europe Facility. Following the drilling of the data gathering well and further engineering design work all key technical risks will have been addressed and the future CAPEX and OPEX better defined, enabling a Final Investment Decision to be taken after that point.
Further information is available on the project company's website www.islandmageestorage.com.
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 Andrew Hindle BSc, MSc, PhD, a Chartered Geologist with 30 years' experience, a Fellow of the Geological Society of London, and a member of the American Association of Petroleum Geologists and the Petroleum Exploration Society of Great Britain.