Infrastrata Share Discussion Threads

[boxerdogz] 07/11/2018 09:35

? Opens for me and am not a suscriber ?

[divmad] 07/11/2018 09:18

Have to be a subscriber to read it.

[boxerdogz] 07/11/2018 09:14

FT article on gas Storage in UK

[snowman100] 06/11/2018 18:01

That boy certainly gets around!....firming up the EU funding deal?

[snowman100] 06/11/2018 17:58

John Wood
‏

@JohnWoo64494325
35s35 seconds ago
More
Busy week and it’s only Tuesday, in Brussels waving the #INFA flag.

[boxerdogz] 05/11/2018 21:02

NEX L2 account on adfvn shows after hrs so can't tell from my end

[snowman100] 05/11/2018 19:33

Whoops......true enough humps........the ask price was .51 and bid .48 at that time.

[humpalumps] 05/11/2018 19:17

.49 would be sells wouldn't they :O

[snowman100] 05/11/2018 18:43

OK ...2x 3M buys at 0.49.....excellent!

[snowman100] 05/11/2018 18:38

Buys or sells Boxer?

[boxerdogz] 05/11/2018 17:47

6 mil delayed trades through on nex

[divmad] 05/11/2018 17:07

Now, wouldn't it be a shocker if that 3rd Party agreed to take a slug of Infa equity at a significant premium to the current sp, as a cornerstone investor, and in doing so, enabled Infa to retain a controlling interest in IslandMagee phase 1?

[snowman100] 04/11/2018 15:27

Arun Raman

Aron has already secured a huge deal with Vitol, therefore he has the most excellent contacts with that very company
and they obviously place as great a trust in him as we do!.........They will be very keen to deal again with Arun.....a lot of background relationship work therefore has already been done (on Aruns previous negotiations on the other contract)....sometimes, this can be one of the most difficult hurdles!.....We are streets ahead here!!

Soon....very soon! .........GLA!!

[snowman100] 04/11/2018 15:14

Post from Dawski (TR1)on LSE

Just noticed your most relevant post..usually there is nothing much exciting at weekends when the market is closed.
As Spud mentions Aron really is the key what with his qualifications,his background in this very particular field and contact with a major potential off-taker.
He is the one to facilitate a major investor in the project with deep pockets and one experienced enough to take on the usual market risk.The investment does not need to dilute shareholders even more --it can be by way of a share of eventual profits from say the first two caverns or long term debt..BUT whatever he negotiates it is important that a group of significant shareholders stick together to be able to combine voting power and fend off any opportunist punter at current values which values do not reflect either the investment made to date nor the huge potential !!.

[snowman100] 04/11/2018 15:11

Vitol Website excerpt
hxxps://www.vitol.com/what-we-do/terminals-storage/
‘……;
Vitol invests in a number of ventures providing terminal and storage facilities globally. In total we have circa 18 million cubic meters of storage capacity in terminals across seven continents…..’
Vitol Website excerpt
hxxps://www.vitol.com/what-we-do/trading/natural-gas/
‘We have been trading natural gas for over 15 years. Global contracted sales in 2017 were 791TWh. Our gas teams operate across continents – Europe, Asia and the Americas – in both pipeline product and LNG.
We work with producers, importers, wholesalers, distributors and industrial users, and supply gas both as a pipeline product and in liquefied form, under a variety of fixed and floating gas hub indexations, oil indexed formulae and other related commodity pricing structures.
We are happy to commit to long-term supply and sales contracts, plus we can respond swiftly and innovatively whenever our customers need us to. Our natural gas business is part of an integrated cross-commodity solution that makes us an ideal partner for both producers and end users.’

Vitol turnover circa 14 Billion US$
Gut feeling says (as I said in previous couple of posts posts) that we already have our funding and offtake sorted. Great feeling about coming week(s). ''what did they say about negotiations....in advanced stage!''
GLA

[snowman100] 04/11/2018 12:31

Some interesting posts from LSE

Older & Wiser (Divmad)
‘I’d like to invite ... Others to suggest how Infa can hold onto a majority equity stake in the IM project, first phase.

I am sure they will use their £11mn expenses already used on the project as a bargaining chip with prospective funders. But Infa will not, cannot afford to, dilute equity too much at this low share price level.

Will a potential offtake partner offer Infa capital to take up a greater equity share than the funds already spent would justify?

Suggestions?’

SpudthePlummer
‘Way above my pay grade but some thoughts O&W

We have the £11mill already spent plus the money getting the FEED finished.
Post FEED the project valuation has to be higher surely?

hxxps://amp.independent.ie/business/brexit/brexit-and-uk-site-closure-boosts-gas-storage-project-37402025.html?__twitter_impression=true

I found a quote from JW in the above report very interesting

"The company is in advanced negotiations with offtakers, traders who are "willing to pay to justify the economics of the project", Mr Wood said. He didn't disclose the potential customers, but said InfraStrata planned to update the market on the commercial arrangement in the fourth quarter."

Malcy blog in August
hxxps://www.malcysblog.com/2018/08/oil-price-premier-eco-atlantic-falcon-infrastrata-and-finally/

"I say piece of the jigsaw as the funding process for Infrastrata will have to be creative whilst getting all funding partners into place conditional on each other. A partial farm-out to, say a pension fund, with long term requirements for income offset against liabilities would lead to the company keeping some of the project leaving it able to develop other similar challenges in the space. This would avoid dilution at PLC level which pension fund investors would find preferable"

A comment from Andrew Monk (head of VSA capital) I also found interesting

@InfraStrata_Plc has a very interesting gas storage asset at Islandmagee in N Ireland - I have actually been there to see it. But it requires quite complicated funding which wont come from normal institutions and that is the whole key and all you need to watch hxxps://t.co/bI5k19JPYX


Looks to me like the funding is inextricably linked to equity partners and off takers?
JW and GL obviously know a lot more about the deal structure than any of us and they have been buying at levels higher than where we are now.

Snowman100
‘Further to Spud's great post...especially the bit about VSA chairman saying...'But it requires quite complicated funding which wont come from normal institutions and that is the whole key and all you need to watch' .

I like the end bit.......'and that is the whole key and all you need to watch' !!!

Infa RNS July 26th
.........'Arun Raman has spent the past 20 years within the commodities and infrastructure sector. While at Star Energy Group plc (now known as Petronas Energy Trading Ltd.), Arun was responsible for commercialising its 10BCF Humbly Grove Underground Gas Storage Project, including the negotiation and commercial delivery of the Gas Storage Agreement with Vitol SA as the capacity offtake client. '

Surely it must be Vitol SA that is lined up for Infa's offtake?

GLA’

Snowman100
‘hxxp://www.vitol.com/wp-content/uploads/2016/09/Vitol-brochure_2016-1.pdf

'When appropriate, our traders work alongside our finance and E&P teams to develop commercial
structures which allow us to finance producers’ operations in return for offtake.'


So is it possible that Vitol could Finance AND offtake islandmagee?

Snowman100
I Don’t think Arun Ramon was brought in for nothing!!

[hazl] 03/11/2018 17:23

Hmm...can't remember now thanks.
It was clearly something for me to remember the essence I guess.

[hazl] 03/11/2018 13:00

I seem to remember there were hints on that score on one of the interviews
I watched boxerdogz ...correct me if I'm wrong.

A lot of politicians are so short-termist these days that I wouldn't be surprised if the rhetoric changes as circumstances change.

[boxerdogz] 03/11/2018 12:01

Mt thoughts DivMad

If they can get EU funding then 60% if not then 30% aprox

Another option that may come to fruition. they get taken over / bought out

[divmad] 03/11/2018 10:20

Infa's current MC is £5mn. Set that against Phase 1 capex of around £100mn and a possible EU grant of£30mn, the issue is what % ownership can Infa negotiate to end up with in this first phase of development. I can imagine that Infa's sunk costs already, of £11mn, will be used as a negotiating stance for a full carried interest. How can Infa get its hands on more of the equity in the project without raising dilutive equity at these levels? That is what I am perplexed over, not the politics of gas storage vs Hydrogen.

[divmad] 03/11/2018 10:08

Boxer, First, thank you for the replies. Will respond when back home. With reference to the current sp, my take is that one TR-1 seller has continued selling down for personal reasons in a difficult overall market condition. So no particular negative implications for the underlying investment premise here, if you are a LTH. And even as a short term trader. this setback has and will create s superb buying opportunity, knowing the prospective news flow to come.

[boxerdogz] 03/11/2018 09:47

Divmad

No Idea on both your questions.

- BEIS : Yes negatives from some contributors and positives from others. The way I see it this came out of the blue ( The government meeting ) INFA gas storage was not based upon this meeting and the financials are . were proved by a study completed by indelendant consultancy , INFA had to complete this for PCI EU grants for feed status. So regardless of they way the BEIS committe was viewed it's a mute point , but my take is there may be more to follow this meeting.

- EU grant due Feb , as spud mentions this would really be cherry on cake , if approved would give INFA a greater share of Contruction of Islandmagee.

- My goals. IF Infa get a finance agreement
- With EU grant 4p target
- Without 2p target.

Lot of negativity is to be expected given the fall in share price and understand that but having read LSE chat boards don't buy into conspiracies etc and gang of 8 traders / shorters.

Each to their own I,m gonna hold regardless until FID decision

[divmad] 03/11/2018 08:37

My next question is, on what basis are the potential lease payments for long term offtake , arrived at? There must be benchmarks elsewhere for this sort of arrangement.