21 Feb 2012 07:00
21 February 2012 For Immediate Release
InfraStrata plc
("InfraStrata" or the "Company")
Farm-in by Corfe Energy Limited
InfraStrata plc (AIM:INFA), the independent gas storage and petroleum exploration company, is pleased to announce that it has been informed by Corfe Energy Limited ("Corfe"), 50% owned by the Company, that Corfe is to acquire a 12.5% interest in Petroleum Exploration and Production Licence 201 ("PEDL201") located in Nottinghamshire and Leicestershire.
Under the terms of the agreement, Corfe will pay for 25% of the cost of the planned Burton on the Wolds-1 exploration well to earn a 12.5% interest. This farm-in interest will be acquired jointly from Celtique Energie Petroleum Ltd and Egdon Resources U.K. Limited.
On completion the licence interests in PEDL201 will be as follows:
Egdon Resources U.K. Limited 37.50% (operator)
Celtique Energie Petroleum Limited 37.50%
Corfe Energy Limited 12.50%
Terrain Energy Limited 12.50%
The transfer of interests is subject to the approval by the Department of Energy and Climate Change.
PEDL201 is located on the southern margin of the Widmerpool Gulf geological basin. The Burton on the Wolds Prospect has been mapped on proprietary 2D seismic data which was acquired in May 2011. The operator has reported that the prospect has Best Estimate Prospective Resources of 3.57 million barrels of oil ("mmbo") in two reservoir objectives. The shallower target, the Rempstone Sandstone, is productive at the nearby Rempstone oil field and is mapped as having gross Best Estimate Prospective Resources of 1.4 mmbo. A seismic anomaly, possibly indicative of a carbonate reef, underlies the Rempstone Sandstone and has estimated gross Best Estimate Prospective Resources of 2.17 mmbo.
The operator has reported that a potential site has been identified and lease negotiations are progressing along with development of a planning application. Subject to planning it is intended that the Burton on the Wolds-1 well will be drilled during 2012.
Commenting on the farm-in by Corfe, Andrew Hindle, CEO of InfraStrata plc said:
"The Corfe project represents an exposure to a well in 2012 with Prospective Resources net to InfraStrata shareholders of 0.22 mmbo with no direct funding requirement. We look forward to further updates on the project from the Corfe management."
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/Gabriella Clinkard/James Strong 020 7466 5000
Nominated Advisor and Broker - Seymour Pierce
Jonathan Wright/ Sarah Jacobs - 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 Corfe Energy Limited
Corfe is an independent private E&P company. The company raised £1.5m in March 2011. It is owned 50% by InfraStrata plc. InfraStrata does not control the company but is represented by William Colvin on the board. Subject to the approval of Department of Energy and Climate Change, Corfe has rights to a 12% interest in the 26th Offshore Round Licence recently offered to a group led by InfraStrata. In addition, Corfe has a 5% interest in the UK onshore Avington Oilfield.
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.