Islandmagee-receipt of final EUR1.75m grant monies

RNS Number : 3039Z

Infrastrata PLC

25 May 2016

 

25 May 2016                                                                 

InfraStrata plc

("InfraStrata" or the "Company")

Islandmagee salt core programme - receipt of final €1.75 million grant monies

The Board of InfraStrata plc (AIM:INFA), the independent petroleum exploration and gas storage company, is pleased to announce that following submission of final reports to the EU on the Islandmagee gas storage project, the balancing €1.75 million grant monies have now been received from the EU.

Under the terms of the Convertible Loan Facility Agreement signed with Baron Oil plc ("Baron") in May 2015, this cash balance will now be placed into an escrow arrangement as security for the €1.8 million bridging finance provided by Baron, which now has a first repayment date of 1 August 2016.

Baron has an accompanying option until 31 March 2017 (or until the loan is repaid if that is earlier) to convert the loan balance into a 15% equity participation in the share capital of InfraStrata's subsidiary, Islandmagee Storage Limited ("IMSL") (the owner of the gas storage project). Should the option be exercised, the equity would be provided pro-rata by InfraStrata, currently 65% interest, and its project partner, Moyle Energy Investments Limited ("Moyle"), currently 35% interest.

Commenting, Andrew Hindle, CEO of InfraStrata said:

"The receipt of the final grant monies in relation to the Islandmagee salt core programme is the conclusion of a highly successful programme of work to complete the feasibility phase of the Islandmagee gas storage project. The continued availability of EU grant funding for the next phase of the project, the Front End Engineering and Design, is a testament to the strategic importance of the project and to InfraStrata's ability to deliver these work programmes."   

For further information please contact:

InfraStrata plc

Andrew Hindle, Chief Executive Officer                                                                    020 8332 1200

Stewart McGarrity, Finance Director

Nominated Adviser and Broker - Allenby Capital Limited

Jeremy Porter / Alex Brearley / Liz Kirchner                                                           020 3328 5656

Financial PR - Camarco

Billy Clegg / Gordon Poole                                                                                      020 3757 4980

Notes to Editors:

Background on InfraStrata plc

InfraStrata is an independent petroleum exploration and gas storage company focused on Northern 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.

Further information is available on the project company's website www.islandmageestorage.com.  

The Front End Engineering & Design (FEED) and Insitu Downhole Testing programme for the Islandmagee gas storage project is co-financed by the European Union's Connecting Europe Facility.

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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