18th Aug 2009 07:00
For Immediate Release 18 August 2009
PRESS RELEASE
Appointment of Ernst & Young
The Directors of Portland Gas plc (AIM: PTG) ("the Company") are pleased to announce that Ernst & Young LLP has been appointed as financial advisors to the Company in respect of the proposed divestment of shares in Portland Gas Holdings Limited ("PGL").
PGL is the developer of the Company's proposed large and flexible gas storage facility at Portland in the UK ("Portland Project"). The details of the sale process were announced to the market on 30th July 2009. Potential investors are being asked to express interest by the end of September 2009 to join a Co-operation Group which will facilitate the sharing of due-diligence activities and costs. In Q1 2010 those who have participated in the Group will then have an opportunity to make a firm commitment to invest.
Commenting on the news, Craig Gouws, CFO of Portland Gas plc, said:
"We are pleased that Ernst & Young has joined the team to advise the Company during the ongoing process. The appointment of Ernst & Young is an important milestone in the sale process and we believe Ernst & Young has the depth of experience and skill to provide the necessary support and advice during the divestiture process".
For further information please contact:
Portland Gas plc
Andrew Hindle, Chief Executive Officer 020 8332 1200
Craig Gouws, Chief Financial Officer
PR - Watershed
Sara Hudston 01308 420785
Investor Relations - Buchanan Communications
Ben Willey 020 7466 5000
Nominated Advisor and Broker - Seymour Pierce
Jonathan Wright 020 7107 8000
Sarah Jacobs
Richard Redmayne
Notes to Editors:
Background on Portland Gas plc
Portland Gas' business is focused on the development of two gas storage projects in the United Kingdom at Portland, Dorset and at Islandmagee, County Antrim, Northern Ireland. The two projects could between them provide over 10% of the total UK and Ireland peak daily demand in the latter part of the next decade. The Company is also developing new projects in mainland Europe initially focussing on Germany and Spain. The Company is one of only a few in Europe focused specifically on gas storage development, a sector with significant growth potential in Europe over the coming decades. In order that the "Portland Gas" name can remain with the Portland Project where it is very well established in Dorset, the Directors intend to seek approval at the next Annual General Meeting of the Company, scheduled for December 2009, to change the name of Portland Gas plc to "Infrastrata plc". The project company, Portland Gas Holdings Limited, would then be renamed to "Portland Gas Limited".
Portland Project
At a projected 1,000 million cubic metres ("mcm") or 35 billion cubic feet ("bcf") of working gas, the facility would be the largest onshore gas storage facility in the UK. Planning permission was granted by Dorset County Council in May 2008 and Pipeline Construction Authorisation was granted by the BERR (now known as the Department of Energy and Climate Change) in July 2008. The gas storage facility is designed to inject or withdraw gas at 20mcm per day. On peak demand days the design allows for the withdrawal rate to be boosted to 30mcm per day. The current estimate of total development cost for the project is £456m. The project will use brine compensation technology and will not require cushion gas. The project company is Portland Gas Holdings Limited ("PGL"). PGL's legal advisor is Field Fisher Waterhouse LLP and project finance advisor is BNP Paribas.
Background on Ernst & Young
Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide they employ 135,000 people united by their shared values and an unwavering commitment to quality. Ernst & Young make a difference by helping their people, their clients and their wider communities achieve their potential.
Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information, visit www.ey.com.
Further information is available on the Company's website www.portland-gas.com.
Related Shares:
INFA.L