INFA.L Regulatory News (INFA)

17 Jan 2008 07:00

Portland Gas plc17 January 2008 For Immediate Release 17 January 2008 Portland Gas plc First Day of Dealing on AIM Portland Gas plc (AIM : PTG) ("Portland" or the "Company") the gas storageproject development company today announces the commencement of dealings in itsshares on AIM following completion of the demerger from New Egdon (renamed EgdonResources plc) which is also admitted to trading on AIM today. Seymour Pierce Limited is the Nominated Adviser and Broker and NM Rothschild andSons are financial advisors to Portland Gas. Overview of Portland Portland's business focuses on the development of gas storage projects in theUnited Kingdom and internationally. It currently has two projects in itsportfolio, the first an advanced Project at the Isle of Portland which has beenunder development for over 3 years, and the second the Larne Lough project inNorthern Ireland which was announced in July 2007. The Isle of Portland project is seeking to develop a major gas storage facility,with the creation of 14 underground storage caverns totaling 1000 mcm (35 bcf)of natural gas - equating to 1% of the UK's annual demand. Portland Gas has drilled and successfully appraised the salt sequence atPortland and is currently progressing through the planning, financing andtendering for construction processes. The planning application decision isexpected to be made during the first quarter of 2008. The Company is currently evaluating the potential of a Permian salt sequence inthe Larne area of Northern Ireland to create salt gas storage caverns. TheCompany has commenced an Environmental Impact Assessment for the proposedproject and has also acquired a 3D seismic programme during October and November2007 to define the distribution and thickness of the salt within the area ofinterest. It is anticipated that the results of the seismic programme will beknown later in the first quarter 2008. Portland Gas plc will be led by Andrew Hindle as Chief Executive Officer withCraig Gouws (Chief Financial Officer), Walter Roberts (Legal and CommercialDirector), Kenneth Ratcliff (Non-Executive Chairman), Mark Abbott (Non-ExecutiveDirector), and Maurice Hazzard (Non-Executive Director) comprising the Board. Upon admission there will be 67,801,840 ordinary shares in issue. Commenting on the listing of Portland Gas on AIM, Andrew Hindle, Chief ExecutiveOfficer of Portland said: "Portland Gas has developed a significant presence in the UK energy industryover the past 3 years, and our strategy to develop the Portland project has ledto significant shareholder value creation in this time. "The Company is delighted to be admitted to AIM, following our demerger fromEgdon, and we look forward to developing our portfolio of projects in the UK andinternationally over the coming years in a sector that is rapidly becoming animportant element of UK energy security." For further information please contact: Portland Gas plc 020 8332 1200Andrew Hindle Chief Executive OfficerCraig Gouws Chief Financial Officer Buchanan Communications 020 7466 5000Ben WilleyNicholas MelsonMiranda Higham Seymour Pierce Limited 020 7107 8000Jonathan WrightSarah Jacobs Notes to Editors: Background to gas storage Natural gas is an extremely important source of energy, currently contributing37 per cent of the UK's energy needs. For many years, the UK has relied heavilyon its North Sea gas fields. That resource of secure and sustainable gas flowhas limited the need to provide significant storage volumes since daily andseasonal demands for gas have been accommodated by the flexibility of suppliesclose to shore. This relative luxury is becoming less and less sustainable asthe nation becomes increasingly reliant on less flexible imported gas, theoutcome of which is that in order to maintain control of supply and demandrequirements, the need for a substantial portfolio of natural gas storagefacilities is now a national issue. Gas storage plays an important role in managing swing demand and mitigating theneed for (expensive) emergency imports. Gas storage facilities can be filledduring times of lower demand to be available during periods of higher demand,either on a daily basis or seasonally. Opportunities for a safe and environmentally friendly method of storing gas arerelatively few. One of the safest and most environmentally friendly methods ofstoring large quantities of gas is deep underground. Without the construction of more storage facilities, the UK will have anever-increasing shortage in storage capacity as our imports, and indeed demand,increase. This information is provided by RNS The company news service from the London Stock Exchange