Infrastrata PLC Final FEED Milestone & Additional Concept Studies (4547J)
December 05 2018 - 2:00AM
UK Regulatory
TIDMINFA
RNS Number : 4547J
Infrastrata PLC
05 December 2018
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR"). With the publication of this announcement,
this information is now considered to be in the public domain.
5 December 2018
InfraStrata plc
("InfraStrata" or the "Company")
Islandmagee Gas Storage Project - Completion of Final Milestone
and Additional Concept Studies
InfraStrata plc (AIM: INFA), the UK quoted company focused on
the development of natural gas storage capacity, is pleased to
provide an update on the final milestone for the FEED (Front End
Engineering Design) of its Islandmagee gas storage project (the
"Project"). Milestones 1 through to 16 have been completed on time
and on budget and accordingly, the FEED report has now been
submitted to the European Union in accordance with the Company's
grant conditions.
The report will, in due course, be reviewed and audited by the
European Union and other related parties to ensure it complies with
all of the conditions appertaining to the grant. It is likely that
InfraStrata will receive its final payment from the EU in Q2 2019
after this verification process has been completed.
Milestone Progress
Milestone Month Description Status
1 April Contract Award Costain InfraStrata - Completed
------- ---------------------------------- ------------ ------------
2 May Contract Award DEEP InfraStrata - Completed
------- ---------------------------------- ------------ ------------
3 May Appointment of Subsurface Expert InfraStrata - Completed
------- ---------------------------------- ------------ ------------
4 May Issue FEED schedule, project Costain - Completed
and quality plans
------- ---------------------------------- ------------ ------------
5 May Current Design Agreed Costain - Completed
------- ---------------------------------- ------------ ------------
6 June Current Design Agreed DEEP - Completed
KBB
------- ---------------------------------- ------------ ------------
7 June Appoint Owners Engineer InfraStrata - Completed
------- ---------------------------------- ------------ ------------
8 July Issue Process Flow Diagrams Costain - Completed
------- ---------------------------------- ------------ ------------
9 August Gas & Leaching layout review Costain - Completed
------- ---------------------------------- ------------ ------------
10 August All Process & Instrumentation Costain - Completed
Diagrams
------- ---------------------------------- ------------ ------------
11 Oct. Engineering Design Complete Costain - Completed
------- ---------------------------------- ------------ ------------
12 Oct. All Investigation work on samples DEEP - Completed
complete KBB
------- ---------------------------------- ------------ ------------
13 Oct. Cavern Design & Rock Mechanics DEEP - Completed
Complete KBB
------- ---------------------------------- ------------ ------------
14 Nov. Surface FEED Deliverables & Costain - Completed
Estimates
------- ---------------------------------- ------------ ------------
15 Nov. Subsurface FEED Deliverables DEEP - Completed
& Estimates KBB
------- ---------------------------------- ------------ ------------
16 Dec. Submit FEED Report to EU InfraStrata - Completed
------- ---------------------------------- ------------ ------------
Completing this final milestone allows the team to concentrate
on completing the negotiations that are underway with three
potential equity providers that have provided the Company with term
sheets for equity funding (at Project or subsidiary level). The
term sheets are not binding and at this stage it is not guaranteed
that InfraStrata will enter into a binding equity agreement.
However, discussions are detailed and advanced and InfraStrata is
still on track to provide a full update in Q4 2018 as previously
stated.
Enabling works have been planned as the next phase of the
Project, ahead of a final investment decision, and are scheduled to
start in January 2019.
In addition, InfraStrata has engaged Costain to undertake a
Concept Development Study to consider the technical implications of
twinning the pipeline that runs between Northern Ireland and
Scotland including the restrictions of connecting any new pipeline
into the existing network and regulatory framework. There are no
guarantees that it will be possible to twin the interconnecting
pipeline at this stage and further details will be provided when
possible.
Further, Atkins has been engaged to further investigate and
provide a Concept Development Study on developing additional
caverns on Islandmagee, as previous advice received indicated that
an additional 15 caverns could be possible on top of the 8 already
planned. However, there are no guarantees that it will be possible
to develop any further caverns at this stage and further details
will be provided when appropriate.
John Wood, Chief Executive Officer, commented: "It is testament
to the team that we are building at InfraStrata that we have
managed to deliver these milestones in a timely manner. As we
progress through to the end of 2018, we are working hard to close
out the equity funding for the Project. We are working through the
process methodically to ensure we create maximum shareholder value.
We are working to ensure we hit the ground running in 2019 with
many work streams in progress"
For further information, please contact:
InfraStrata plc c/o Yellow Jersey
John Wood, Chief Executive +44 (0)20 3735
8825
Allenby Capital Limited (AIM Nominated
Adviser & Joint Broker) +44 (0)20 3328
Jeremy Porter / Liz Kirchner 5656
SI Capital Limited (Joint Broker) +44 (0) 20 3871
Nick Emerson 4038
Yellow Jersey +44 (0)20 3735
Tim Thompson 8825
-ENDS-
Notes to editors:
InfraStrata is an independent gas storage company focused on the
UK and Ireland. Further information is available on the Company's
website: www.infrastrataplc.com
Background on the Islandmagee Storage Project
The Islandmagee gas storage project is a proposed salt cavern
gas storage facility located on Islandmagee in County Antrim,
Northern Ireland. The Board of InfraStrata believes that the
proposed 500 million cubic metres Natural Gas Cavern Storage
facility will provide over 25% of the UK's Natural Gas Storage once
constructed, and will be situated adjacent to the Scotland Northern
Ireland (gas) Pipeline (SNIP) and the Moyle 500 Megawatt
Electricity Interconnector. 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 2015 a well was drilled to core the salt and confirm
the technical feasibility of the project, supported in part by the
European Commission. The Front End Engineering and Design (FEED)
element of the Project was completed in November 2018 and the FEED
report was submitted to the European Union in December 2018 in
accordance with the Company's grant conditions. . To date
approximately GBP13.5m has been invested in the project.
Further information is available on the company's website:
www.infrastrata.co.uk
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."
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END
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