4 Sep 2015 07:00
4 September 2015 For immediate release
InfraStrata plc
("InfraStrata" or the "Company")
Update on the post Islandmagee-1 well programme of works
InfraStrata plc (AIM:INFA), the independent petroleum exploration and gas storage company, is pleased to provide an update on the programme of works on the Islandmagee gas storage project in Northern Ireland following completion of the drilling of the Islandmagee-1 well in June 2015. InfraStrata is a 65% shareholder of the gas storage project developer, Islandmagee Storage Limited.
The £3.8 million programme of work commenced with the drilling of the well and has been designed to confirm the feasibility of the development of an underground gas storage facility in salt caverns, by obtaining wireline data and core samples of the Permian salt to undertake laboratory analyses, including rock mechanical tests, to further define the design parameters and cost estimate for the project. All the end of well reports have been finalised and the initial results from the laboratory in Germany on the cores are encouraging and the parameters are now being used by the surface engineering team to provide an update on the facility design and cost estimates.
The programme is being supported by a €2.5 million grant from the European Commission under the Connecting Europe Facility. There are five stages to the programme agreed with the European Commission and three of those have now been successfully completed.
The completion of this work will conclude a nine year programme covering a wide variety of aspects required for a major infrastructure project, including technical, commercial, permitting, planning and land assembly. By the end of this year approximately £10 million will have been invested in the project.
The completion of the programme, expected to be in November 2015, will provide the key data to support the monetisation of the project and InfraStrata's interest.
Commenting on the announcement, Andrew Hindle, CEO of InfraStrata said:
"We are very pleased that the programme of works is on schedule to be completed on time and we expect to provide a further update on completion of the work during November. Plans for commencing the monetisation process are also underway as anticipated."
For further information please contact:
InfraStrata plc
Andrew Hindle, Chief Executive Officer 020 8332 1200
Stewart McGarrity, Finance Director
Financial PR - Buchanan
Richard Darby/ Anna Michniewicz 020 7466 5000
Nominated Adviser and Joint Broker - Allenby Capital Limited
Jeremy Porter / Alex Brearley 020 3328 5656
Joint Broker - VSA Capital Limited
Andrew Raca/ Richard Buckle 020 3005 5004
Notes to Editors:
Background on InfraStrata plc
InfraStrata is an independent petroleum exploration and 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 owned 65% by a wholly owned subsidiary of InfraStrata plc and 35% by a wholly owned subsidiary of Mutual Energy Limited. 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 October 2013, the gas storage project was granted a 'Project of Common Interest' ("PCI") status by the European Commission. PCI status means recognition by the European authorities that the Islandmagee gas storage project brings benefits not only to the Member State in which it is located, but to a much wider area. A data gathering well (Islandmagee-1) was drilled in May/June 2015 to obtain cores of the salt sequence and subsequently undertake further engineering design work. This work programme is being part-funded with a €2.5 grant from the European Commission under the Connecting Europe Facility. Following the drilling of the data gathering well and further engineering design work, the future CAPEX and OPEX will be better defined, to support the monetisation process.
Further information is available on the project company's website www.islandmageestorage.com.
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 30 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.
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