Infrastrata has completed the legal agreements with US energy company eCORP International regarding the Infrastrata's interests in the Portland gas storage project.
eCORP Oil & Gas UK, a subsidiary of eCORP International, has acquired the rights to 50% of the share capital of the project company, Portland Gas, in return for funding the next £22.9m in the project to match the project expenditure invested to date by Infrastrata.
Infrastrata, through its UK subsidiary, will retain 50% of the share capital in Portland Gas, which will be used to develop the Portland Project further before bringing it to market.
As per the terms of the agreement with eCORP, the drilling of the first cavern well during 2011 will be the initial activity.
Data will be acquired to better define the pressure ranges over which the caverns can be operated to maximize the responsiveness of the caverns to short term gas demand requirements (the ‘extrinsic value’ of the project) and finalize elements of the cavern design.
Infrastrata and eCORP will jointly provide Portland Gas with technical services.