RNS Releases
19 January 2016 - Update on Woodburn Forest-1 well and its funding PDF Print E-mail

InfraStrata plc (AIM:INFA), the independent petroleum exploration and gas storage company, is pleased to announce that a series of Farmout Agreements (“FOA”s) have been entered into by InfraStrata and Brigantes Energy Limited (“Brigantes”), both together and separately, which together will result in completion of the funding for the planned Woodburn Forest-1 well in Northern Ireland if the conditions of the FOAs set out below are satisfied. In addition an Escrow Agreement has been signed by all new investors and existing partners in the project whereby the funds for drilling the well in H1 2016 are being transferred to an account being administered by the Company’s solicitors, Fieldfisher LLP.

On 16 November 2015 the Company announced that together with Brigantes it was seeking to farmout a 60% interest in Northern Ireland Petroleum Licence PL1/10 (“PL1/10”) to pay the outstanding 80% required to complete the funding of the Woodburn Forest-1 well. At the same time the Company announced it had signed a farm-in agreement with Ermine Resources Limited (15% interest). The additional new investors that have now entered into FOAs for the remaining 45% are Tudor Hall Energy Limited (10%), Baron Oil Plc (10%), Southwestern Resources Limited (16%) and Petro River UK Limited (9%). All the parties are expected to acquire corresponding interests in the adjacent offshore Petroleum Licence P2123 (“P2123”)for paying the costs attributable to that interest from the commencement of the licence term in December 2013.

In order to facilitate the FOAs, the Company has also signed a Supplemental Sale and Purchase Agreement (“Supplement”) with Brigantes, replacing the outstanding obligations under a Sale and Purchase Agreement, signed and previously announced on 18 March 2013. Under the Supplement there will be a transfer of a 5% interest in PL1/10 from Brigantes to InfraStrata, a 10% interest from InfraStrata to Brigantes in P2123 and the payment of £86,459 cash from Brigantes to InfraStrata.

All these licence interest assignments will be subject to the approval of the Department of Enterprise, Trade and Investment (“DETI”) for PL1/10 and the Oil and Gas Authority (“OGA”) for P2123.

Following the signature of the FOAs and Supplement, and subject to DETI approval, the Woodburn Forest-1 and PL1/10 licence interests will become:

Company Current Licence Interest Interest to be assigned from InfraStrata Interest to be assigned from Brigantes New Licence Interest
InfraStrata plc (operator) 45% -30% 5% 20%
Brigantes Energy Limited 45% -35% 10%
Terrain Energy Limited 10% 10%
Ermine Resources Limited 10% 5% 15%
Tudor Hall Energy Limited 10% 10%
Baron Oil plc 10% 10%
Southwestern Resources Limited 16% 16%
Petro River UK Limited 9% 9%
Total 100% 100%

A condition precedent of the Escrow Agreement and FOAs is that the well is drilled during the first half of 2016. To achieve this several factors need to be met, including securing the drilling rig and other contractual arrangements which are expected to be put in place in the next few weeks.

The Company also announced on 16 November 2015 that as part of sale and purchase agreements with Corallian Energy Limited (“Corallian”) (the “Corallian SPA”), and subject to the Woodburn Forest-1 well being fully funded (as now provided by the Escrow Agreement and FOAs) and proceeding as planned, 10% of InfraStrata’s remaining interest in PL1/10 and P2123 would be assigned to Corallian, subject to DETI and OGA approval, in return for a further payment to InfraStrata by Corallian of £300,000 in cash. This payment must be received before the commencement of drilling operations, and after making enquiries with Corallian, it is expected that the funds will be available to complete the transaction as planned.

Assuming all agreements (the FOAs, Escrow Agreement, Supplement and Corallian SPA) become unconditional and proceed as announced and anticipated, InfraStrata will retain a 10% operated interest in PL1/10, carried through the Woodburn Forest-1 well.

A prospectivity review of the PL1/10 licence in Northern Ireland was prepared by project geoscience consultants Merlin Energy Resources Limited (“Merlin”) in 2013 and published on the Company’s website (www.infrastrata.co.uk). Merlin identified combined un-risked P50 prospective resources on the PL1/10 licence in the Triassic and Permian sandstone reservoir intervals of over 450 million barrels of oil (“mmbo”), of which 25 mmbo were ascribed to the first target Woodburn Forest prospect.

Commenting on the announcement, Andrew Hindle, CEO of InfraStrata said:

“This is the culmination of 5 years of hard work by InfraStrata and its joint venture partners. Work commenced on PL1/10 in 2011 with the acquisition of the first of two seismic surveys. The technical evaluation of the area has confirmed the presence of numerous prospects within the Larne-Lough Neagh Basin of Northern Ireland. There are three target conventional sandstone reservoir intervals, the Triassic Sherwood, Permian Lower Permian Sandstone and Carboniferous Sandstones.

With Northern Ireland dependent upon imported oil and gas, the development of an oil and gas industry could have a very positive impact on its economy. The drilling activity itself generates income for the local economy. InfraStrata estimates that the drilling of a deep borehole, Islandmagee-1, for its gas storage project in 2015 resulted in approximately £800,000 invested with local services and contractors. The Company expects a similar positive impact for the Woodburn Forest-1 well.

We now look forward to working with local stakeholders to complete the pre-drilling arrangements and then drilling the well with the minimum impact to local residents. ”

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31 December 2015 - Total Voting Rights PDF Print E-mail

InfraStrata (AIM:INFA), the independent petroleum exploration and gas storage company, announces that the issued share capital of the Company at the date of this announcement comprises 170,871,599 ordinary shares of 1 pence, each with one voting right. The Company does not hold any ordinary shares in treasury. Therefore the total number of ordinary shares and voting rights in the Company is 170,871,599.

The above figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in, the share capital of the Company under the FCA’s Disclosure and Transparency Rules.

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18 December 2015 - Proposed placing to raise up to 450,000 PDF Print E-mail

InfraStrata (AIM:INFA), the independent petroleum exploration and gas storage company, is pleased to announce a placing to raise up to £450,625 (before expenses) through the issue of up to 36,050,000 new ordinary shares of 1p each (“Placing Shares”) at a price of 1.25 pence per Placing Share (the "Placing") in two tranches.

The Placing was conducted by Allenby Capital Limited (“Allenby Capital”) and the Placing Shares have been placed with institutional and other investors, including existing shareholders and the Company’s CEO. Of the funds raised, £214,625 is conditional, inter alia, on the approval of shareholders at the Company’s annual general meeting on 26 January 2016 (“AGM”) of resolutions to provide authority to the Directors to issue and allot further new ordinary shares otherwise than on a non-pre-emptive basis, further details of which are set out below.

The net proceeds of the Placing, which will be approximately £420,000, will be used to support the working capital requirements of the Company as it progresses work to monetise the Islandmagee gas storage project in the first half of 2016. The net amount raised under the Placing is expected by the Directors to provide the short-term working capital required to reach their monetisation goal whilst seeking to minimise dilution to existing shareholders, but the Directors will keep the Company’s funding requirements under review as the project progresses.

Commenting on the placing, Andrew Hindle, the CEO of InfraStrata plc said:

“We welcome the support of existing and new institutional and private investors in the placing. The placing proceeds, together with existing funds, are expected to meet the Company’s shortterm working capital requirements to support the monetisation of the Islandmagee project. The Company will work with its project partner, Mutual Energy Limited, to seek the necessary investment to enable the gas storage project to proceed to full construction. The process will commence in the New Year with the appointment of advisers to assist the Company with a review of the best options, in order to secure the maximum value for InfraStrata shareholders as soon as possible.”

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17 December 2015 - Posting of Annual Report PDF Print E-mail

InfraStrata plc is pleased to advise that the Annual Report and Financial Statements for the year ended 31 July 2015, which includes a notice of the Annual General Meeting (“AGM”), is now available on the Company's website, www.infrastrata.co.uk, and will be posted to shareholders tomorrow. The AGM will be held at 11.30 a.m. on 26 January at the offices of Allenby Capital Ltd, 3 St Helen’s Place, London EC3A 6AB.

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08 December 2015 - Final results for the year ended 31 July 2015 PDF Print E-mail

InfraStrata plc (AIM:INFA), the independent petroleum exploration and gas storage company, is pleased to announce its final results for the year ended 31 July 2015.

Overview and highlights

Islandmagee Gas Storage Project – County Antrim

  • Concluded a grant agreement with European Union’s Connecting Europe Facility for €2.5million (£1.9m) being 50% of the cost of a £3.8 million salt core programme of work comprising the drilling of a well to obtain salt cores and subsequent testing and engineering work.
  • Salt core programme was completed on time and within budget and reporting back to the European Commission is imminent.
  • Feasibility phase of project has now addressed all key technical risks and InfraStrata will now progress the monetisation of the de-risked project in early 2016.
  • European Union grant was available by virtue of the projects designation as a Project of Common Interest (“PCI”) which was renewed for a further two years in November 2015 – the only gas storage project in NW Europe to have this designation. As a PCI the project benefits from accelerated permitting procedures, improved regulatory conditions and continued eligibility to apply for financial support from the European Union.
  • InfraStrata retains a 65% interest in the project reducing to 55.25% should Baron Oil plc exercise their option to acquire a 15% interest in the project.

Oil & Gas Exploration

  • Secured Consent to Drill for Woodburn Forest-1 well on PL1/10 in County Antrim. Design and procurement of the well is substantially complete in anticipation of drilling in H1 2016 following completion of funding arrangements.
  • InfraStrata with partner Brigantes seeking to farm out a combined 45% interest in the licence to complete the 60% outstanding funding for the well.

Divestment of Exploration Assets

  • In November 2015 disposed of substantially all of the Group’s exploration interests, including shareholdings in associated companies Brigantes Energy Limited and Corfe Energy Limited to Corallian Energy Limited.
  • Immediate cash receipt of £240,000 with a further £300,000 contingent upon the completion of the funding of the Woodburn Forest-1 well on licence PL1/10. Consideration also includes Net Profits Interest instruments in assets sold providing upside in the event of successful exploration but without a commitment to pay future exploration costs on the assets sold.
  • InfraStrata expects to retain a 10% interest in the PL1/10 licence fully carried through the Woodburn Forest-1 well.
  • Primary focus of InfraStrata’s business going into 2016 is the Islandmagee Gas Storage project in County Antrim and the monetisation of our interest in the project.

Financial

  • Loss for the year ended 31 July 2015, £6,106,070 (2014: loss £1,246,701) after making impairments of £6,072,785 to reflect the cash proceeds from the exploration asset divestments.
  • No value ascribed to Net Profit Interests retained in exploration assets – but they provide upside in the event of exploration success.
  • Cash cost of project management and company administration for the year ended 31 July 2015 £1,065,161 (2014: £1,126,482). Following further salary reduction and other cost savings annualised project management and company administration costs now running at less than £800,000, before any recoveries as licence operator.
  • Capital costs of Islandmagee storage project during the year £3,663,514 funded by proceeds from £2.1million placing completed in February 2015 and a €2.5 million grant from the European Union.
  • €1.8 million loan facility (£1 million drawn at 31 July 2015) from Baron Oil plc to bridge payment profile on European Union grant – convertible to 15% interest in Islandmagee Storage Limited.
  • Cash and cash equivalents at 31 July 2015 £430,199 (2014: £1,648,955)
  • Appointment of Allenby Capital Limited as Nominated Advisor and joint broker.

Commenting on the results and outlook, Andrew Hindle, CEO of InfraStrata plc said:

" The successful drilling of the Islandmagee salt core well and subsequent testing and design development is testament to our ability to deliver on time and within budget. With the European Union’s Project of Common Interest designation renewed for a further two years we are now firmly focused on delivering the best outcome for our shareholders’ investment in the project.

We are committed to the drilling of the Woodburn Forest-1 well in County Antrim and expect to have a 10% interest in the licence fully carried through the well providing potentially material upside for shareholders in the event of success. The divestment of our other exploration assets has provided clarity for InfraStrata shareholders with the future focus on Northern Ireland where we have built up strong stakeholder relationships over 9 years of operations on our projects in County Antrim."

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