|04 October 2010 - Legal agreements with eCORP completed for the Portland project|
Further to the announcement made on 29 June 2010, the Directors of Infrastrata plc (AIM: INFA) (“Infrastrata” or “the Company”) are pleased to announce that legal agreements have been completed with US independent energy company eCORP International, LLC (“eCORP”) relating to Infrastrata’s interests in the Portland gas storage project.
A subsidiary of eCORP, eCORP Oil & Gas UK Limited, has acquired rights to 50% of the share capital of the project company, Portland Gas Limited, in return for funding the next £22.9 million in the project to match the project expenditure invested to date by Infrastrata. The Company, through its subsidiary Infrastrata UK Limited, will retain 50% of the share capital in Portland Gas Limited.
These funds will be used to develop the Portland Project further before bringing it to market. Under the terms of the agreement with eCORP, the drilling of the first cavern well during 2011 will be the initial activity. Data will be acquired to better define the pressure ranges over which the caverns can be operated to maximise the responsiveness of the caverns to short term gas demand requirements (the ‘extrinsic value’ of the project) and finalise elements of the cavern design. Infrastrata and eCORP will jointly provide Portland Gas Limited with technical services.
Infrastrata and eCORP are also progressing agreements relating to the Company’s projects in Northern Ireland, Germany and Spain, as mentioned in the June 2010 announcement. The Company expects to conclude these agreements with eCORP prior to the end of 2010.
Commenting on the news, Andrew Hindle, CEO of Infrastrata plc said:
“We are excited about moving into a new phase in the development of the Company with the partnership.