29 Oct 2018 13:38
Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.
29 October 2018
InfraStrata plc
("InfraStrata" or the "Company")
Islandmagee Gas Storage Project Update - Land Options
InfraStrata plc (AIM: INFA), the UK quoted company focused on the development of natural gas storage capacity, is pleased to announce that its 100% owned subsidiary, Islandmagee Energy Limited ("Islandmagee Energy") (previously Islandmagee Gas Storage Limited) has exercised some historic options to purchase land that is required to progress the Islandmagee gas storage project (the "Project").
Islandmagee Energy holds various options to purchase certain areas of land where the Project will be located and on which the Project proposals and design are based, including the location of the surface facilities. For several years Islandmagee Energy has paid a yearly fee to keep these options valid, some of which expire at the end of this month. Therefore, with the progress made on the Project and the aim to secure funding to move to the construction phase next year, Islandmagee Energy has exercised the five options due to expire this month to purchase plots of land as set out below and with the following dates to complete the purchases:
Lot Number | Purchase Price | Completion Date |
1 | £116,000.00 | 15.04.19 |
1.1 | £66,000.00 | 15.04.19 |
2 | £88,000.00 | 15.04.19 |
5 | £210,000.00 | 31.12.18 |
5.1 | 73,802.00 | 31.12.18 |
The Company's existing cash resources will be used to finance the purchase of lots 5 and 5.1 and in conjunction with its discussions for the next phase of Project funding, the Company is exploring new sources of finance for those lot acquisitions completing on 15 April 2019.
John Wood, Chief Executive Officer, commented: "Exercising Islandmagee Energy's historic options to purchase the various parcels of land is another stream of work that needed to be completed prior to equity and debt funding for the Project being put in place. Advanced discussions surrounding these workstreams continue at pace."
For further information, please contact:
InfraStrata plc John Wood, Chief Executive
| c/o Yellow Jersey +44 (0)20 3735 8825 |
Allenby Capital Limited (AIM Nominated Adviser & Joint Broker) Jeremy Porter / Alex Brearley / Liz Kirchner
| +44 (0)20 3328 5656 |
SI Capital Limited (Joint Broker) Nick Emerson
| +44 (0) 20 3871 4038 |
Yellow Jersey Tim Thomson | +44 (0)20 3735 8825 |
-ENDS-
Notes to editors:
InfraStrata is an independent gas storage company focused on the UK and Ireland. Further information is available on the Company's website: www.infrastrataplc.com
Background on the Islandmagee Storage Project
The Islandmagee gas storage project is a proposed salt cavern gas storage facility located on Islandmagee in County Antrim, Northern Ireland. The Board of InfraStrata believes that the proposed 500 million cubic metres Natural Gas Cavern Storage facility will provide over 25% of the UK's Natural Gas Storage once constructed, and will be situated adjacent to the Scotland Northern Ireland (gas) Pipeline (SNIP) and the Moyle 500 Megawatt Electricity Interconnector. 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 2015 a well was drilled to core the salt and confirm the technical feasibility of the project, supported in part by the European Commission. The Front End Engineering and Design (FEED) element of the Project is scheduled for completion by the end of 2018. To date approximately £11.5m has been invested in the project.
Further information is available on the company's website: www.infrastrataplc.com
The Front End Engineering & Design (FEED) and Insitu Downhole Testing programme for the Islandmagee gas storage project is co-financed by the European Union's Connecting Europe Facility.
Disclaimer releasing the European Union from any liability in terms of the content of the dissemination materials:
"The sole responsibility of this publication lies with the author. The European Union is not responsible for any use that may be made of the information contained therein."