Infrastrata PLC First phase of FEED commences (6134Z)
March 16 2017 - 2:00AM
UK Regulatory
TIDMINFA
RNS Number : 6134Z
Infrastrata PLC
16 March 2017
Dissemination of a Regulatory Announcement that contains inside
information according to REGULATION (EU) No 596/2014 (MAR).
16 March 2017
InfraStrata plc
("InfraStrata" or the "Company")
First phase of FEED commences for Islandmagee gas storage
project
InfraStrata plc (AIM: INFA), the independent gas storage
company, is pleased to announce that it has commenced the first
phase of Front End Engineering Design ("FEED"), known as Concept
Evaluation, for its Islandmagee gas storage project (the
"Project").
This activity will be part funded using some of the net proceeds
of the recent placing undertaken by the Company (the "Placing"), as
further described in the Company's announcement of 27 February 2017
(the "February Announcement").
During the Concept Evaluation, the FEED contractors will
undertake a value enhancement exercise on the Project's current
design basis. The objective is to identify opportunities through
which the current design and phasing could be optimised, to enhance
overall project value and in particular, to assess the potential
for accelerating the delivery of capacity (or part thereof) to the
gas markets. The outcome of the Concept Evaluation will provide key
inputs to the completion of the FEED scope, to produce a fully
integrated programme of work and deliverables.
It is anticipated that the Concept Evaluation phase will be
concluded in approximately six weeks. Further funding will be
required to progress the FEED beyond the Concept Evaluation phase,
as explained below.
During the Concept Evaluation phase, the Company will continue
its fundraising discussions with interested parties to provide the
additional funding required to complete the FEED and
commercialisation work programme, further details of which were
contained within the Company's announcement of 4 November 2016 (the
"November Announcement").
In the November Announcement the Company outlined that, in
addition to the EU grant funding and loans available from the
selected FEED contractors ("Contractor Loans"), a further amount of
GBP3 million would be required to complete the FEED and
commercialisation process. This is part of a gross GBP6 million
programme, which includes a GBP4 million engineering budget and
funds for corporate overheads, working capital and bridging finance
until receipt of the remaining European Commission grant funds
following completion of the FEED programme. Following the recent
Placing, the remaining funding required to complete the FEED and
commercialisation work programme is now approximately GBP2.2m (the
"Current Funding Requirement"). Drawdown of the Contractor Loans is
subject to InfraStrata securing the Current Funding
Requirement.
There can be no guarantee at this stage that the Company will be
successful in its ongoing discussions with potential investors to
secure the Current Funding Requirement. If the Board considers that
the Company will not be able to secure the Current Funding
Requirement, then in order to preserve available working capital,
the Company may halt the Concept Evaluation phase and place the
Project on a care and maintenance budget, and consider utilising
the remaining funds from the Placing to explore other options for
the Company, which may include a sale of the Project and/or its
assets. Further announcements will be made in due course as
appropriate.
The Directors remain confident that the Project is economically
viable, and that, following the completion of the FEED and
commercialisation programme, the Project would be capable of
attracting further new investment for the Company and the
Project.
For further information, please contact:
InfraStrata plc
Anita Gardiner, Joint Managing
Director
Stewart McGarrity, Joint Managing
Director +44 (0) 28 9051 1415
Allenby Capital Limited (Nominated
Adviser & Broker)
Jeremy Porter / Alex Brearley
/ Liz Kirchner +44 (0)20 3328 5656
Financial PR - Camarco
Billy Clegg / Gordon Poole +44 (0)20 3757 4980
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."
Notes:
Background on InfraStrata plc
InfraStrata is an independent gas storage company focused on the
UK and 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. To date
approximately GBP11m has been invested in the project.
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
MSCLLFITVRIELID
(END) Dow Jones Newswires
March 16, 2017 03:00 ET (07:00 GMT)
Harland & Wolff (LSE:HARL)
Historical Stock Chart
From Apr 2024 to May 2024
Harland & Wolff (LSE:HARL)
Historical Stock Chart
From May 2023 to May 2024