InfraStrata has confirmed a company structure shake-up as it divests the majority its exploration-based assets in a bid to refocus on its gas storage project in Northern Ireland.
The independent petroleum exploration and gas storage company has sold its exploration portfolio to Corallian Energy for £540,000 cash and retained interests in each of the assets without obligations for future investment.
The firm was forced to shed its interests after Larne Oil & Gas confirmed it would not meet its funding obligations on the PL1/10 and P2123 licences in Northern Ireland, including the repayment of costs already incurred.
InfraStrata chairman Ken Ratcliff said: “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.
“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.
At the same time the transactions provide absolute clarity regarding the company’s long stated strategy of not using its own cash resources to fund major exploration expenditure whilst in the process of monetising the gas storage project.
“No further investment is expected to be required by InfraStrata in the assets sold, but the Company retains an upside in the event of any successful exploration through the retained NPI instruments and a retained operated interest in licence PL1/10, subject to a successful completion of ongoing farm-out negotiations with third parties.”