Northern Ireland Exploration

RNS Number : 4691W

Infrastrata PLC

19 November 2010

 



For Immediate Release                                                                19 November 2010                                                                          

InfraStrata plc

("InfraStrata" or the "Company")

InfraStrata offered petroleum exploration licence in Northern Ireland

The Directors of InfraStrata plc (AIM: INFA), the independent gas storage and infrastructure specialist are pleased to announce that the Company has been offered a petroleum exploration licence over the central part of the Larne-Lough Neagh Basin in Northern Ireland. The offer is in response to an application made to the Department of Enterprise, Trade and Investment ("DETI") in Northern Ireland in August 2010. The Company expects that DETI should be in a position to issue the licence in the New Year after it has completed the drafting of the terms and conditions of the licence, taking into account the outcome of its consultation with other Departments and agencies. The initial licence term will be five years with a decision on drilling a well required within two years. InfraStrata is the operator of the licence with a 50% interest.

The licence covers an area of 663 square kilometres, and the existing Islandmagee gas storage project is located within the boundary.

The Larne-Lough Neagh Basin contains reservoir targets within the Carboniferous, Permian and Triassic sequences. The basin is relatively under-explored as it is covered by Tertiary basalts of up to 600 metres thick. The Company believes the area holds significant untapped potential and the recent developments in seismic acquisition and processing techniques developed for exploration below thick basalt sequences West of Shetland, and elsewhere, should enable effective exploration in Northern Ireland.

Commenting on the licence, Andrew Hindle, CEO of Infrastrata said:

"We are excited by the prospect of this award in Northern Ireland, which would extend our existing activities in the region. During 2010, we took the decision to focus our resources on the UK gas market, and to enhance our existing gas storage business within our two core areas. This includes conventional and unconventional petroleum exploration, where we can use our existing geological and geophysical knowledge and databases to leverage initial funding for the projects. The news today demonstrates this commitment and we see an excellent strategic fit between gas production and storage in close proximity to each other.

Seismic data would be acquired during 2011 and it is hoped that interpretation of this data will lead to an exploration well being drilled within two years. Ideally such a well could form part of a programme to include drilling for the Islandmagee gas storage project, where we hold a 65% interest, subject to the granting of planning permission for that project."

For further information please contact:

InfraStrata plc

Andrew Hindle, Chief Executive Officer                                                            020 8332 1200

Craig Gouws, Chief Financial Officer

Financial PR - Buchanan Communications

Richard Darby                                                                                              020 7466 5000

James Strong

Nominated Advisor and Broker - Seymour Pierce

Jonathan Wright                                                                                           020 7107 8000

Richard Redmayne

Notes to Editors:

Background on InfraStrata plc

InfraStrata plc is developing two gas storage projects in the United Kingdom at Portland, Dorset (50% interest) and at Islandmagee, County Antrim, Northern Ireland (65% interest). The two projects could between them provide over 10% of the total UK and Ireland peak daily demand in the latter part of this decade. 

Further information is available on the Company's website www.infrastrata.co.uk.

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