Commencement of drilling: Islandmagee-1

RNS Number : 4064N

Infrastrata PLC

18 May 2015

 

18 May 2015                                                                              For immediate release

InfraStrata plc

("InfraStrata" or the "Company")

Commencement of drilling operations - Islandmagee-1 salt well

InfraStrata plc (AIM:INFA), the independent petroleum exploration and gas storage company, is pleased to announce the commencement of drilling operations at the Islandmagee-1 well in Northern Ireland.

The Islandmagee-1 well began drilling ("spudded") at 18:00 hours on 15 May 2015.

Drilling operations are expected to take around 5 weeks. The well will be drilled to a total drilled depth of approximately 1,700 metres.

The objective of the well is 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.

These results will enable the project developer, Islandmagee Storage Limited (InfraStrata 65% shareholder), to complete this phase of work in Q4 2015.

The costs of this 2015 work programme are being funded 50% by the European Commission under their Connecting Europe Facility.

Commenting on the announcement, Andrew Hindle, CEO of InfraStrata said:

"We are pleased to report commencement of the drilling of the well at Islandmagee and look forward to updating shareholders with the initial results from the well at the end of June. The analysis of the Permian salt is an integral part in the development of the gas storage project. The project is recognised on a European level as a strategically important asset that will improve the security of supply and increase the flexibility available in the gas markets in Great Britain, Northern Ireland and the Republic of Ireland and enable greater interconnectivity across these three neighbouring markets, whilst supporting the achievement of national renewable and carbon reduction targets."

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 Advisor and Joint Broker - Arden Partners plc

Chris Hardie/ Michael McNeilly                                                                         020 7614 5917

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 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. The next investment step in the project is the drilling of the data gathering well (Islandmagee-1) to approximately 1,700 metres depth to obtain cores of the salt sequence and subsequently undertake further engineering design work. This €5 million work programme is being funded 50% by the European Commission under the Connecting Europe Facility. Following the drilling of the data gathering well and further engineering design work all key technical risks will have been addressed and the future CAPEX and OPEX better defined, enabling a Final Investment Decision to be taken after that point.

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.

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."

 

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