18 Mar 2013 07:00
18 March 2013 For Immediate Release
InfraStrata plc
("InfraStrata" or the "Company")
Prospectivity review and update on project funding for PL1/10 licence
InfraStrata plc (AIM:INFA), the independent petroleum exploration and gas storage company, is pleased to provide a summary of a prospectivity review of the PL1/10 petroleum licence in Northern Ireland.
The review was prepared by project geoscience consultants Merlin Energy Resources Limited ("Merlin"). Substantial progress has been made in the de-risking of the Larne-Lough Neagh Basin play over the course of the last two years following two seismic surveys undertaken by InfraStrata in 2011 and 2012. A review of play elements in the Larne-Lough Neagh Basin indicates significant potential for petroleum resources. Merlin has 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).
A copy of the prospectivity review is available and can be downloaded from the Company's website www.infrastrata.co.uk.
Further to the prospectivity review, the Company also announces it has secured further funding to drill its first exploration well on the PL1/10 licence following the sale of a 5% interest in the PL1/10 to Brigantes Energy Limited ("Brigantes"). Under the terms of the agreement Brigantes will pay £150,000 in cash and in addition carry InfraStrata for its share of 5% of the costs of the well. Taken together with previous funding arrangements with project partners, InfraStrata now has funding in place to cover the majority of its anticipated costs to drill the first exploration well which will target P50 prospective resources of 25 mmbo (net InfraStrata 11 mmbo).
The Company is in the process of identifying a suitable site from which to drill the well and hopes that drilling will commence in Q4 2013, subject to securing the necessary consents and rig availability.
The partner interests in the licence on completion will be:
InfraStrata plc 25%
Brigantes Energy Limited 45%
Nautical Petroleum Limited (Cairn Energy plc) 20%
Terrain Energy Limited 10%
Commenting on the prospectivity review of the PL1/10 licence, Andrew Hindle, CEO of InfraStrata plc said:
"InfraStrata is delighted to update its shareholders on the very exciting potential of the PL1/10 licence, borne out in the review released today.
The Larne-Lough Neagh Basin has been largely overlooked by the oil and gas industry, with only one exploration well being drilled in the centre of the basin covered by the PL1/10 licence, back in 1971, before any seismic data had been acquired. The presence of extensive surface flood basalts at or near the surface had deterred explorers. However by applying newer techniques in seismic processing, InfraStrata has been able to image below the basalts. The data has revealed a basin very similar in structural style to the prolific East Irish Sea Basin with over 20 undrilled structures."
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.
Background on Licence PL1/10
The petroleum licence PL1/10 (Central Larne - Lough Neagh Basin) was awarded in March 2011 by the Department of Enterprise, Trade and Investment. The licence covers an area of 663 square kilometres. The initial licence term is five years with a decision on drilling a well required within three years.
The partner interests in the licence on completion will be:
InfraStrata plc 25%
Brigantes Energy Limited 45%
Nautical Petroleum Limited (Cairn Energy plc) 20%
Terrain Energy Limited 10%
InfraStrata is the operator of the licence. In addition to its direct 25% interest, it holds an additional 18% net interest via a 40% shareholding in partner company Brigantes Energy Limited.
Definitions
Prospective resources: as defined by the Society of Petroleum Engineers (SPE) are those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from undiscovered accumulations.
P50: the mid-point on a cumulative distribution curve of resources vs. probability of success ie. there being an equal chance that the resource volume outcome would be larger or smaller than the P50 resource volume quoted.
mmbo: millions of barrels of oil.
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.