Infrastrata PLC Baron Oil option revision and planned divestment (8413K)
September 26 2016 - 8:15AM
UK Regulatory
TIDMINFA
RNS Number : 8413K
Infrastrata PLC
26 September 2016
Dissemination of a Regulatory Announcement that contains inside
information according to REGULATION (EU) No 596/2014 (MAR).
26 September 2016
InfraStrata plc
("InfraStrata" or the "Company")
Revision to Baron Oil option and planned divestment of remaining
exploration assets
InfraStrata plc (AIM:INFA), announces that it has agreed to a
modification of the option held by Baron Oil Plc ("Baron") to
acquire equity in Islandmagee Storage Limited ("IMSL"), the gas
storage development company owned 90% by the Company.
On 19 August 2016, the Company announced that it had repaid a
loan from Baron and had amended the option which accompanied the
loan from Baron, so that Baron had an option to acquire a 15%
interest in IMSL for a payment of GBP1,536,498 until 31 March 2017.
This option has been revised, so that Baron now has an option to
acquire the number of ordinary shares of 1p in InfraStrata that
represents 16.666% of the enlarged ordinary share capital of
InfraStrata (from time to time) for a payment of GBP1,536,498,
until 31 March 2017. Exercise of the option in full is conditional
on InfraStrata having the requisite authorities under the Companies
Act 2006 to issue new ordinary shares in the Company, which will be
sought at the Company's next general meeting of shareholders (or
earlier if required).
This is part of an ongoing programme of re-structuring of the
Company, as it seeks to focus entirely on the Islandmagee gas
storage project. This also follows the Company's announcement on 13
September 2016 that it had increased its interest in IMSL to
90%.
The Directors of InfraStrata have also decided to divest the
Company's remaining oil and gas exploration interests and intend to
commence a process to achieve this shortly.
Following these changes, InfraStrata will also seek a
re-classification of the Company's sector classification. It is
proposed to reclassify the Company to the Utility sector 7573 Gas
Distribution. If the Industry Classification Benchmark approves
this re-classification, then the change is anticipated to be
implemented in December 2016.
Commenting, Andrew Hindle, CEO of InfraStrata said:
"The amendment to Baron's option and the other proposals
announced today are important aspects of InfraStrata's transition
to the only AIM-quoted company entirely focused on gas storage and
we will be reviewing our management and technical requirements to
ensure that all resources will be entirely dedicated to development
of the project."
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."
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 company, Islandmagee Storage
Limited ("IMSL"), is owned 90% by a wholly owned subsidiary of
InfraStrata plc and 10% by a wholly owned subsidiary of Mutual
Energy Limited. The project is a proposed salt cavern gas storage
facility located on Islandmagee in County Antrim, Northern Ireland.
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. In 2015 a well was
drilled to core the salt and confirm the technical feasibility of
the project, supported in part by the Commission. The final stage
before a Final Investment Decision will be the Front-End
Engineering Design and Commercialisation of the project, planned to
be completed by end 2017.
Further information is available on the project company's
website www.islandmageestorage.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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