22 Oct 2018 11:38
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.
22 October 2018
InfraStrata plc
("InfraStrata" or the "Company")
Islandmagee Gas Storage Project Update - Subsurface Milestones Completed
InfraStrata plc (AIM: INFA), the UK quoted company focused on the development of natural gas storage capacity, is pleased to provide an update on the FEED ("Front End Engineering Design") progress for its Islandmagee gas storage project (the "Project"), having now achieved over 81% of the pre-established milestones (13/16).
FEED commenced in May 2018 and is scheduled to be delivered in accordance with the EU Grant provisions. FEED remains on budget with no significant issues having arisen. Milestones 12 and 13 have now been completed, following excellent endeavours by DEEP KBB, our sub-surface contractor, to achieve these milestones ahead of schedule.
The remaining elements of the FEED involve the compilation and finalisation of technical reports and a "P90" cost estimate for delivering the Project determined by probabilistic analysis. P90 values are established to provide a high level of confidence (90% confident) such that the Project out turn cost will have a 90% chance to be below this estimate and a 10% chance above. The reports required by the EU are anticipated to be submitted in December 2018.
Current Milestone Progress
Milestone | End of Month | Description | Status | |
1 | April | Contract Award Costain | InfraStrata | √ - Completed |
2 | May | Contract Award DEEP | InfraStrata | √ - Completed |
3 | May | Appointment of Subsurface Expert | InfraStrata | √ - Completed |
4 | May | Issue FEED schedule, project and quality plans | Costain | √ - Completed |
5 | May | Current Design Agreed | Costain | √ - Completed |
6 | June | Current Design Agreed | DEEP KBB | √ - Completed |
7 | June | Appoint Owners Engineer | InfraStrata | √ - Completed |
8 | July | Issue Process Flow Diagrams | Costain | √ - Completed |
9 | August | Gas & Leaching layout review | Costain | √ - Completed |
10 | August | All Process & Instrumentation Diagrams | Costain | √ - Completed |
11 | Oct. | Engineering Design Complete | Costain | √ - Completed |
12 | Oct. | All Investigation work on samples complete | DEEP KBB | √ - Completed |
13 | Oct. | Cavern Design & Rock Mechanics Complete | DEEP KBB | √ - Completed |
14 | Nov. | Surface FEED Deliverables & Estimates | Costain | |
15 | Nov. | Subsurface FEED Deliverables & Estimates | DEEP KBB | |
16 | Dec. | Submit Reports To EU | InfraStrata |
John Wood, Chief Executive Officer commented "We are pleased to have completed the final elements of material testing and to have finalised the cavern design. We look forward to receiving the FEED deliverables and the final estimates in November. Our detailed discussions with potential Project equity funders and offtake partners continue."
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.infrastrata.co.uk.
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.infrastrata.co.uk
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."