18th May 2015 07:52
LONDON (Alliance News) - Infrastrata PLC on Monday said drilling has started at the Islandmagee-1 salt well in Northern Ireland.
Drilling operations at the site are expected to take around five weeks, the company said, with the aim of confirming the feasibility of the development of an underground gas storage facility in salt caverns.
Baron Oil PLC also noted the start of drilling at the site, having signed a convertible loan deal with Infrastrata earlier this month under which it has provided Infrastrata with a EUR1.8 million loan, with an option to convert the loan into a 15% stake in the Islandmagee project.
"We are pleased to report commencement of the drilling of the well at Islandmagee and look forward to updating shareholders with the initial results from the well at the end of June. The analysis of the Permian salt is an integral part in the development of the gas storage project," said Infrastrata Chief Executive Andrew Hindle.
Shares in Infrastrata were up 0.6% to 4.025 pence on Monday morning, while Baron Oil shares were down 1.1% to 1.162p.
By Sam Unsted; [email protected]; @SamUAtAlliance
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