LONDON (ShareCast) - (ShareCast News) - Independent petroleum exploration and gas storage company InfraStrata reported on Tuesday that its wholly owned subsidiary, InfraStrata UK, has acquired an additional 25% equity stake in Islandmagee Storage (IMSL).
The AIM-traded firm said Islandmagee is the developer of the gas storage facility in Northern Ireland which is a joint venture with Moyle Energy Investments, a wholly owned subsidiary of Mutual Energy.

Following the acquisition, InfraStrata UK will own 90% of Islandmagee Storage with Moyle holding 10%.

The changes in interests are being achieved by IMSL issuing IS‑UK with an additional 250 ordinary shares fully paid for cash at par.

For Moyle, who joined the project in May 2008, the transaction will mean that at Final Investment Decision it will no longer have the shareholder obligation to advance its share of outstanding funding to date to IMSL of approximately £2m plus interest to retain its interest.

InfraStrata said that sum has been loaned to IMSL by IS-UK.

Instead, going forward, Moyle will be required to advance IMSL 10% of any future shareholder loans made by IS-UK prior to FID, but IMSL will still remain liable to repay all existing funding provided by IS-UK.

"InfraStrata represents the only AIM-listed company with a focus on gas storage and this focus, and the importance of the project, has never been greater as we look to complete funding for a FEED and commercialisation process," said InfraStrata CEO Andrew Hindle.

"There has been much reporting recently in the press about the potential for a structural change in the gas storage market partially due to the reduction of capacity at the Rough facility, which accounts for approximately two-thirds of UK storage capacity."

Hindle said the company's management believes there has not been a better rationale for investing in gas storage for a number of years and the importance of new modern facilities to provide the necessary security.

"The acquisition of the additional interest in Islandmagee Storage Limited is part of a strategy for a focus of management resources on the successful delivery of maximum value from the project to InfraStrata's shareholders."

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