16th Nov 2015 08:23
LONDON (Alliance News) - Shares in gas exploration and storage company Infrastrata PLC rose on Monday morning after the company said it has agreed a deal to sell its exploration-based assets in order to focus on its storage project in Northern Ireland.
Infrastrata shares were up 17% to 2.775 pence on Monday morning, one of the best performers in the AIM All-Share.
The company has signed a sale and purchase agreement with Corallian Energy Ltd and Osmington Holdings Ltd, the latter a subsidiary of Corallian. Under the terms of the agreement, Infrastrata will transfer its entire stakes in the P1918, P2222 and P2235 licences to Corallian, along with its stakes in Brigantes Energy Ltd and Corfe Energy Ltd.
The P2235 licence transfer includes an amendment to the asset exchange deal the company signed in December 2014 with Fyrd Energy Ltd. Under the new agreement, Fyrd will transfer is remaining 75% stake in the licence to Infrastrata in exchange for Infrastrata's rights over the Portland project.
The total consideration will be GBP240,000 initially, plus a net profit interest for the three licences Infrastrata is selling and a 4% share of any profits from the Brigantes and Corfe projects.
"Market sentiment towards investment in oil and gas exploration has continued to be negative during 2015, none more so than for AIM listed companies, and this is reflected in share prices and the challenges associated with raising new capital to invest in exploration," said Chairman Ken Ratcliff.
"The disposal of most of our exploration interests to Corallian enables us to secure future participation in these assets through a company that can focus upon attracting the necessary financial investment required to take the assets forward in 2016," Ratcliff added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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