Infrastrata Share Discussion Threads

[c2b] 06/1/2017 12:36

Surely when Infrastrata default Baron being secured take the assets but not the liabilities so the idea behind the project remains alive for better times?

[pottermagic2310] 06/1/2017 12:09

and £6m of recognised Debt by year end, with no Cash at the Bank left, in the event that nothing comes of the FID and further (real) development proves impossible to pursue.
It's important to appreciate they are warning us right now of Business failure by year-end and a tangible Risk to proceeding any further with the real development work.

[h2owater] 06/1/2017 11:30

Cash at bank at 31 July 2016 £2,454,006 (2015: £430,199) including £1.4 million from the grant received in advance from the European Union and held as a creditor pending completion of funding for the FEED programme.

[pottermagic2310] 06/1/2017 11:18

The directors anticipate that the additional funding of £3.0m required to complete the FEED and commercialisation programme during 2017 and to repay the new Baron loan can be secured through an equity fundraising in the first quarter of 2017. However the timing and success of such fundraising cannot be guaranteed. After preparing cash flow forecasts, making enquiries and considering the loan facility from Baron Oil plc and the intention to raise the balance as described above, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis of accounting in preparing the annual financial statements. (They also say only to the end of 2017 elsewhere AND only if the additional/immediate Fund Raise is successful)

Following the completion of the FEED and commercialisation programme at the end of 2017 the project will be ready to move into construction and delivery and at that time the Company will further evaluate the optimum way to structure the funding of the initiation and delivery of that programme for our shareholders and will evaluate the available sources of funding, including both debt and equity participation, to fund both the continuing operations of the Company beyond December 2017 and the commencement of construction. The full project construction is expected to be delivered over a number of years at an aggregate cost of approximately £300 million and to be delivered on a phased basis.
(£300 million over 5 years from 2018 to 2023 if you read between the lines - only a huge Global Business (or group of Partners) could support this)


The directors remain confident that the project is economically viable and that following the completion of the FEED and commercialisation programme, further new investment for the Company and the project will be secured. Having reviewed the value of gas storage assets in accordance with the principles set out below, the directors are of the opinion that these assets are not impaired in value.

However the success of the 2017 fundraising is uncertain. The directors have concluded that a material uncertainty exists that may cast significant doubt upon the Group's ability to continue as a going concern and therefore the Group may be unable to realise its assets and discharge its liabilities in the normal course of business. SO THERE IS SIGNIFICANT UNCERTAINTY AND ASSETS WILL BE IMPAIRED AND OVER £6M OF DEBT WILL NEED REPAYING !!!!!!!!

Were the Group no longer a going concern, the Group's capitalised project development costs totalling £6,116,114 provision would be required for the future liabilities arising as a consequence of the Group ceasing business and assets and liabilities currently classified as non-current would be reclassified as current.

I wish I was a day-trader and had made an overnight killing.
I suspect this will continue to limp along throughout 2017.
I would really like to see the detail behind the statement "The directors remain confident that the project is economically viable...]" how so £306m Costs for what Revenue & Profits ? What is the Business Model for an operating Storage Facility of this nature, what on-going Operating Costs are involved, how is profitability achieved and over what operating timescales (surely not 1st day, 1st month) ?

[c2b] 06/1/2017 10:28

Barron probably don't need to bid, If Infrastrata default on the loan Barron takes all the assets.

[falia] 06/1/2017 10:13

SO A BID COMING FROM BARON OIL

[c2b] 06/1/2017 10:08

If you think there might possibly be any future in this project sell Infrastrata now and Buy Baron Oil, because it seems like they will own this very shortly.....

[gimmetheloot] 06/1/2017 10:07

NT to buy can't buy any!!

[mally6] 06/1/2017 09:28

They have stated further funding needed so a raise is coming

[pwhite73] 06/1/2017 09:13

Just be careful they don't use the recent rise to issue discounted equity.

[pembury] 06/1/2017 08:27

better for you than boil gwb!
need to sell the asset asap!!

[c2b] 06/1/2017 08:21

Just supposing there was a huge corporate wanting to spend millions building these salt caverns surely they'd want to supervise FEED themselves?

[c2b] 05/1/2017 17:25

PottermagicNot entirely fair, a lot of work was done at Portland and in N. Ireland. But what makes me cross is that they pursued the "monetisation" of this project when they (but not PIs) would have known that nobody was going to be interested and they are still trying to do the Feed to no purpose because there still won't be anybody interested in putting in the hundreds of millions needed to build these caverns, at least not in the immediate future. Real exploration prospects were disposed of to follow the cavern dream of Andrew Hindle with him stepping down as CEO in November the writing really was on the wall. The creative RNS writing here is pretty disgusting Feed Contractors lending a quarter of their fee and taking security for it - don't make me laugh! It didn't start out that way, but yes the current BOD are just milking it for as long as they can. More honest just to liquidate it for whatever it will fetch now.

[pottermagic2310] 05/1/2017 14:26

I suspect these "Businesses" are more about the people behind them securing Government/EU funding [a Freebie] to 'explore' things a little with no hope of anything ever really happening, whilst paying themselves very nicely to produce a Website and do a little marketing now and then. They shouldn't be allowed anywhere near the Markets - we're just exploited on top of the free Grants !!

[c2b] 05/1/2017 09:26

Such a shame, but by the time the storage caverns could be up and running we will probably have so much gas coming from fracking and exploration off Ireland we'll be just turning the supply on and off at source rather than storing it. Project may still have some validity so someone will probably acquire the permits, drill analysis etc, and put them on the shelf for another day. Most probably the person that's going to lend Infrastrata the short term money against the security of the IP - but then wait for the default. Hence the need for the RNS. Can't think that the equity is worth anything.

The worst thing is that Infrastrata actually had at one time licenses with existing discoveries in them off Dorset that they just let go in search of the gas storage dream.

[pottermagic2310] 04/1/2017 18:26

I think if I'd realised this was just another "Portland" I'd never have wasted my time... feel an idiot now for staying invested so long.
Time's up
:-(

[bingham] 04/1/2017 16:00

Yes, it all seemed a bit far fetched at that presentation, at the Portland Hight`s hotel, so many years ago.But they seemed very nice people,and quite believable at the time.

[pottermagic2310] 04/1/2017 14:23

Why exactly do you trust him ? Do you know him personally ? As he actually done something for your personally to warrant your trust ?

This RNS is nothing more than a statement that 'they' would like 'us/them/somebody else' to provide 'them' with some more money to keep paying themselves with throughout 2017, as they pursue the Vision.



This Business now seems to be nothing more than a 'vehicle' to keep paying the BoD and "Employees", for as long as "Investors" believe there's actually something to be gained. Is there ?

It seems like nothing but hot air to me now
:-(

[guesswhosback] 04/1/2017 08:34

Hmm not a brilliant RNS again. I invested here because Alan Booth of Encore fame was on the board. I trust him.

[pottermagic2310] 31/12/2016 19:06

The problem with this 'stuff' is that it's all nothing more than a Vision without serious Wonga to actually develop something meaningful. Nobody has actually been showing any interest of a significant nature for 2 years now and a Partner has effectively walked away in September.
The Business doesn't actually own anything of any value and its Business Model now seems dependent on securing massive amounts of Investment from elsewhere to get any genuine Development work underway, which would in theory result in a temporary, significant spike in the share price and 'pay dirt', so to speak.
I sense this is now done for... check out how many new Gas Storage facilities of this nature have actually been developed and are now operational in the UK in the past 5 years - there doesn't seem to be any real appetite for it.
:-(
On the Eve of a new Year, I'm happy to write this off and forget about it.

[nlmbidc] 31/12/2016 10:24

Not sure you are right. We could have a buyer waiting in the wings for the whole of IMSL.
Different location this time and potential interested buyer. Which company paid half a million for the dtailed drilling data earlier this year.

[pottermagic2310] 30/12/2016 18:07

I suspect that INFA 'acquiring' a larger Stake in itself via IMSL (up to 90% from 65%) back in September was possibly the beginning of the end.
Somebody selling a large number of Shares on 9th December and again yesterday, resulting in a significant drop in the MV & share price on both occasions, is also telling.
Portland Gas didn't actually develop anything several years ago and I've now realised I've invested in the same Vision/Business relocated (& renamed) elsewhere... DOH
Only appears to be worth the 'Cash in the Bank' from here on
:-(

[nlmbidc] 30/12/2016 10:50

Who is going to buy infa then? Must be worth a few bob!!!

[pottermagic2310] 30/12/2016 10:05

.68p !! Going, Going, G.....