22 Sep 2011 07:00
For Immediate Release 22 September 2011
InfraStrata plc
("InfraStrata" or the "Company")
Exclusivity Agreement signed for Islandmagee Gas Storage Project
InfraStrata plc (AIM:INFA) the independent gas storage and petroleum exploration company is pleased to announce that, together with Moyle Energy Investments Limited ("Moyle"), the Company has entered into exclusive negotiations with a major energy company ("Potential Partner") regarding the appraisal of the Islandmagee gas storage facility development project in County Antrim, and the option to acquire an equity interest in Islandmagee Storage Limited ("IMSL"), the gas storage developer in Northern Ireland owned by InfraStrata (65%) and Moyle (35%).
Under the terms of an Exclusivity Agreement the Potential Partner has committed to pay a consideration of £200,000, which will be used to complete part of the land purchase for the Islandmagee gas storage project.
The Potential Partner has been granted until 31 January 2012 to finalise terms with InfraStrata and Moyle, whereby the Potential Partner will fund the activities necessary to develop the project up to the point where a decision can be made on whether to proceed with construction of the project, and, in return, will be granted an option to acquire a significant equity interest in the project once these activities have been completed.
For further information please contact:
InfraStrata plc
Andrew Hindle, Chief Executive Officer 020 8332 1200
Craig Gouws, Chief Financial Officer
Financial PR - Buchanan
Richard Darby 020 7466 5000
James Strong
Gabriella Clinkard
Nominated Advisor and Broker - Seymour Pierce
Jonathan Wright/ Jeremy Porter - Corporate Finance 020 7107 8000
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.
Further information is available on the Company's website www.infrastrata.co.uk.
Background on the Islandmagee Gas Storage Project
The proposed 500mcm (18 bcf) gas storage facility will be the largest on the island of Ireland and make a significant contribution to the security of gas supplies in UK and Ireland. InfraStrata plc has a 65% interest in the project. Its partner in the project is a subsidiary of Mutual Energy Limited, the owner of the Scotland to Northern Ireland gas pipeline. A planning application was submitted in March 2010 to the Northern Ireland Planning Service.
Further information is available on the project 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 Dr Andrew Hindle, a Chartered Geologist with over 25 years' experience.