18 Oct 2012 10:31
For Immediate Release | 18 October 2012 |
InfraStrata plc
("InfraStrata" or the "Company")
Islandmagee Planning Permission Granted
InfraStrata plc (AIM:INFA) the independent gas storage and petroleum exploration company is pleased to announce that Islandmagee Storage Limited ("IMSL") has received planning approval for its £400 million development of a natural gas storage facility at Islandmagee, County Antrim. IMSL is an independent Northern Ireland registered company; a joint venture between a subsidiary of InfraStrata plc (65% shareholder) and Moyle Energy Investments Limited, part of the Mutual Energy group of companies (35% shareholder).
The facility will have the capability to store 500 million cubic metres of natural gas - enough to satisfy Northern Ireland's peak demand for around 60 days - in Permian salt beds almost a mile beneath Larne Lough. The project has the potential to create around 200 construction jobs during its seven-year development, and 20-30 long-term operational posts.
It was announced in January 2012 that IMSL had entered into agreements with BP Gas Marketing Limited ("BPGM") regarding appraisal of the project and the option for BPGM to acquire a 50.495% equity interest in IMSL. Under the terms of a Joint Appraisal Agreement, BPGM agreed to fund the activities necessary to develop the project, including the drilling of the first borehole, up to the point where a decision can be made on whether to proceed with its detailed engineering design. Further, in consideration for the work undertaken in developing the project, £200,000 was paid to IMSL on signature of the Joint Appraisal Agreement in January 2012, and a further £200,000 is being paid to IMSL following this grant of planning permission for the project. These new funds will be paid to InfraStrata to settle a portion of its loan account to IMSL.
Commenting on the planning permission, Andrew Hindle, CEO of InfraStrata plc said:
"We are delighted that planning permission has been secured for this economically and strategically important energy project. The planning approval is a major project milestone. Site preparation work for the first borehole, is due to begin in late 2012 with drilling planned, subject to confirmation on the regulatory framework for the project, for the first half of 2013."
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 020 7466 5000
Nominated Advisor and Broker - Arden Partners plc
Richard Day/Justine Waldisberg 0207 614 5917
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.
Background on the Islandmagee 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. The facility is being designed to inject gas at 12mcm and withdraw gas at 22mcm per day.
Further information is available on the Company's website www.infrastrata.co.uk.
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.