Contract for Islandmagee wellsite awarded

RNS Number : 2830E

Infrastrata PLC

09 May 2013

 



9 May 2013                                                                             For Immediate Release

InfraStrata plc

("InfraStrata" or the "Company")

Contract for Islandmagee wellsite awarded

InfraStrata plc (AIM:INFA), the independent petroleum exploration and gas storage company, is pleased is pleased to announce that Islandmagee Storage Limited, 65% owned by the Company, has awarded Islandmagee based contractor Graeme Barr Plant Hire the contract to construct the project wellsite and the associated access road adjacent to Larne Lough. This wellsite will be the platform from which the drilling of a well is expected to take place towards the end of 2013, whereupon core samples of the Permian salt will be obtained from the well to confirm the depth, thickness and composition of the salt, and finalise the design of the caverns.

The main construction activity is expected to commence on Monday 20th May and last for approximately 10 weeks.

Commenting on the news, Andrew Hindle, CEO of InfraStrata plc said:

"This is another important milestone, being the first activity on the ground in relation to a multi-well drilling campaign by the Company in Northern Ireland and England during 2013 and 2014."

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 the Islandmagee gas storage project

Islandmagee Storage Limited (IMSL) was granted planning permission and a gas storage licence for a £400 million natural gas storage facility at Islandmagee, Co Antrim, in October 2012. The company is currently applying for further consents required before the project could proceed to full construction, including three marine licences.

The proposed 500 million cubic metres gas storage facility will make a significant contribution to the security of gas supplies for Northern Ireland and the whole island of Ireland. Northern Ireland is dependent on gas for around 65% of electricity generation with all of Northern Ireland's gas imported via a single pipeline from Scotland.

IMSL is an independent Northern Ireland registered company; a joint venture between a subsidiary of InfraStrata plc (65% shareholder) and Moyle Energy Investments Limited, part of the Mutual Energy group of companies (35% shareholder). It was announced in January 2012 that IMSL had entered into agreements with BP Gas Marketing Limited (BPGM) regarding appraisal of the project and the option for BPGM to acquire a 50.495% equity interest in IMSL. Under the terms of a Joint Appraisal Agreement, BPGM has agreed to fund the activities necessary to develop the project, including the drilling of an appraisal well, up to the point where a decision can be made on whether to proceed with its detailed engineering design.

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.

 

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