8 Aug 2013 07:00
8 August 2013 For Immediate Release
InfraStrata plc
("InfraStrata" or the "Company")
Operational Update
InfraStrata plc (AIM:INFA), the independent petroleum exploration and gas storage company, is pleased to provide an operational update on its planned 2013/14 multi-well drilling programme.
County Antrim
Islandmagee Storage Limited ("IMSL") (InfraStrata shareholder, 65%) has now completed the wellsite construction for the Islandmagee-1 gas storage appraisal well. Once clarification on the regulatory framework for the project has been received the well will be drilled, funded by BP Gas Marketing ("BPGM") under an agreement with IMSL which provides BPGM with an option to acquire a 50.495% interest in the project. The well will provide core samples of Permian salt to confirm the depth, thickness, rock mechanical properties and composition of the salt to finalise the design of the caverns.
Plans are also advancing for drilling of the first exploratory well on Petroleum Licence PL1/10 (InfraStrata Operator, net interest 43%). A review of the Larne-Lough Neagh Basin by Merlin Energy Resources Limited ("Merlin") published on the Company's website identifies significant potential for petroleum resources. Merlin identified combined un-risked P50 prospective resources on the PL1/10 licence in the Triassic and Permian sandstone reservoir intervals of over 450 million barrels of oil ("mmbo") (net InfraStrata over 194 mmbo).
Dorset
A planning application for drilling and testing of the California Quarry-1 well, to be drilled from onshore to offshore within Petroleum Licence P1918 (InfraStrata Operator, net interest 78%), has been submitted to Dorset County Council. Subject to the granting of planning permission by the end of 2013, InfraStrata anticipates the well will be drilled in the first half of 2014. The prospective resources for the Purbeck Prospect within the Triassic Sherwood sandstone reservoir have been estimated by the joint venture at 100 billion cubic feet ("bcf") (net InfraStrata 78 bcf).
Elsewhere in Dorset within onshore licences PL090 and PEDL237 (Egdon Resources Operator, InfraStrata net 5% interest via shareholding in Corfe Energy Limited) 3D seismic is planned to be acquired later in 2013, and is anticipated to lead to the drilling of an oil exploration well later in 2014.
Leicestershire
Planning permission was granted in July 2013 for the Burton on the Wolds-1 well within licence PEDL 201 (Egdon Resources Operator, InfraStrata net 5% interest via shareholding in Corfe Energy Limited). The Operator has stated that drilling of the well is expected to take place later in 2013 and is targeting mean prospective resources of 3.8 mmbo (net InfraStrata 0.2 mmbo).
Commenting on the update, Andrew Hindle, CEO of InfraStrata plc said:
"InfraStrata is entering an exciting phase of its development with participation in five wells anticipated to be drilled during 2013 and 2014. Funding is in place for the majority of the drilling activity, with any balance funded by way of farming out working interests in the licences where necessary.
The drilling programme has the potential to lead to a step change in valuation and opportunity in the Company. We are entering an exciting period and there is expected to be significant newsflow on developments over the coming months. Regular updates on progress with the campaign will be provided."
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/Tom Hufton 020 7466 5000
Nominated Advisor and Broker - Arden Partners plc
Richard Day/ Katelin Kennish 020 7614 5917
Notes to Editors:
Background on InfraStrata plc
InfraStrata is an independent petroleum exploration and gas storage 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.
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 Andrew Hindle BSc, MSc, PhD, a Chartered Geologist with 28 years' experience, a Fellow of the Geological Society of London, and a member of the American Association of Petroleum Geologists and the Petroleum Exploration Society of Great Britain.