News blog

InfraStrata

BY: Andrew Hore |
POSTED: 20/01/2012 |
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Gas storage developer and oil and gas explorer InfraStrata has signed up BP as its partner for its Northern Ireland gas storage project.

BP Gas Marketing (BPGM), the company’s gas trading division, has been granted an option to acquire a 50.495% stake in Islandmagee Storage Ltd (IMSL). BPGM will finance development of the project up until the point where a decision can be made on whether to go ahead with a detailed engineering design.

If planning permission is granted by the end of June then the drilling of the well for the first cavern could happen before the end of the year. This is the main expenditure that BPGM has to cover.

InfraStrata’s stake in IMSL will be diluted from 65% to 32.178% and Moyle Energy Investments’ stake will fall from 35% to 17.327%. INSL received £200,000 on the signing of the agreement and a further £200,000 will be paid when planning permission is obtained. This cash will be used to pay back loans from InfraStrata. IMSL will receive income from managing planning and other aspects of drilling operation.

At 12.88p a share, up 1.75p, InfraStrata is valued at £10.1m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJanuary2012_28.pdf