InfraStrata: contract for Islandmagee well site awarded

AIM-listed independent petroleum exploration and gas storage company InfraStrata, has reported that Islandmagee Storage - which is 65 per cent owned by the company - has awarded Graeme Barr Plant Hire a contract to construct a project well site and access road.

The well site is to be the platform from which the drilling of a well is expected to take place towards the end of 2013, according to Infrastrata, whereupon core samples of Permian salt are to be obtained from the same.

The company said that the main construction activity would be expected to commence on Monday May 20th and last for approximately 10 weeks.

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Islandmagee Storage was granted planning permission and a gas storage licence for a £400m natural gas storage facility at Islandmagee in County Antrim, in October 2012.

The company is currently applying for further consents before the project can proceed to full construction, including three marine licences.

The proposed 500m cubic metres gas storage facility is expected to make a significant contribution to the security of gas supplies for Northern Ireland and the whole island of Ireland.

Northern Ireland is dependent on gas for around 65% of its electricity generation, with all of Northern Ireland's gas imported via a single pipeline from Scotland.

Commenting on the news, Andrew Hindle, Chief Executive Officer of InfraStrata, said: "This is another important milestone, being the first activity on the ground in relation to a multi-well drilling campaign by the company in Northern Ireland and England during 2013 and 2014."

Infrastrata's share price was unchanged at 12.25p at 11:19 on Thursday.

MF