Final Results

 

TIDMPTG 
 
RNS Number : 3417B 
Portland Gas plc 
26 October 2009 
 

 
 
 
 
+-------------------------------------+-------------------------------------+ 
| 26 October 2009                     |               For Immediate Release | 
+-------------------------------------+-------------------------------------+ 
 
 
PRESS RELEASE 
 
 
Final results for the year ended 31 July 2009 
 
 
 
 
Portland Gas plc (AIM: PTG) ("the Company" or "Portland Gas") the independent 
gas storage Company is pleased to announce final results for the year ended 31 
July 2009. 
 
 
 
 
Operational highlights 
 
 
  *  Portland Project funding process launched 
  *  
    *  BNP Paribas appointed as the project company debt finance advisors 
    *  Field Fisher Waterhouse LLP appointed as the project company solicitors 
    *  Co-operation group established after year end comprising 5 companies which have 
    expressed an interest in the Project 
 
  *  Pre-start planning conditions discharged for the Portland Project 
  *  Initial site works on the Portland Project wellpad area commenced 
  *  Good progress made with the Islandmagee Project 
  *  
    *  Successful two-day public exhibition held 
    *  Planning application submission target of year end 2009 
 
  *  The Company has continued to pursue and evaluate international gas storage 
  opportunities 
 
 
 
 
 
Financial highlights 
 
 
  *  Loss for period of GBP1,281,002 (2008; GBP1,569,621) 
  *  Loss per share of 1.82p (2008; 2.33p) 
  *  Cash and cash equivalents as at 31 July 2009 of GBP3,066,502 (2008; 
  GBP9,276,964) 
  *  Capitalised expenditure on gas storage projects during the year of GBP5,729,823 
  (2008; GBP7,360,442) 
 
 
 
 
 
 
 
 
 
 
 
Chief Executive's Report 
 
 
The Portland Gas group has during this time of economic uncertainty focused on 
the Portland Project funding, however it has also been able to progress its 
other gas storage projects. It is now well recognised that a significant 
programme of gas storage development is required in the United Kingdom and 
Ireland to secure energy supplies for the future. The two projects initiated by 
the Group in the United Kingdom could between them provide approximately 42 
million cubic metres of gas on a cold winter day (this is approximately 10% of 
the total United Kingdom and Ireland peak daily demand). 
 
 
Portland Project 
The first funding process for the Portland Project was halted owing to the 
'credit crunch' in November 2008. There followed a period of consultation with 
interested parties on a bi-lateral basis until July 2009 when a new process was 
formally launched. During this intermediate period, BNP Paribas was appointed as 
project finance advisors and Field Fisher Waterhouse LLP as new legal advisors 
to the project company. 
 
 Following the discharge of the pre-start planning conditions, on 31 July 
2009 site work commenced at Upper Osprey on Portland. 
 
 The first task is to undertake initial works on the wellpad area from which 
drilling down to the salt sequence deep below Portland can take place, the first 
stage in creating 14 caverns providing storage for 1,000 million cubic metres of 
gas. These preliminary works are being performed by Hydrock, a leading national 
provider of consultancy and specialist contracting services for construction, 
infrastructure and the environment. Engineering design work is being undertaken 
by CB&I who have global experience in the engineering, procurement and 
construction of major energy infrastructure projects. The Company has reached 
agreement with Hydrock to undertake works to a value of GBP300,000. These works 
are being funded by a redeemable debenture created on the 7 July 2009 and 
granted to Hydrock. Under the terms of the debenture the Company may redeem the 
instrument until 31st January 2010 beyond which it is converted into 369,595 
ordinary shares. 
 
 
The gas storage facilities will be constructed in a number of stages, starting 
initially with drilling and construction of the facilities required to construct 
the caverns, followed by construction of the gas facilities and pipelines. The 
project will take approximately seven years to complete. 
 
 
After the year-end, a Co-operation Group was established following a successful 
first phase of the funding process. The Group consists of five companies who 
have each expressed an interest in possibly acquiring a working interest in the 
Portland Project, together with Infrastrata UK Limited (formerly Portland Gas A 
Limited). The Group will work together to conduct a feasibility study in respect 
of the Project. The Project's legal advisor, Field Fisher Waterhouse LLP, will 
draw up a Shareholders' Agreement and a separate Capacity Agreement. In 
parallel, the Project's project finance advisor, BNP Paribas, will work on the 
development of the financing structure. 
 
 
On the 14 July 2009 the Company agreed to place 919,474 new ordinary shares of 
10p each at 81.17p per share with Portland Port Limited to settle an existing 
liability relating to the East Weares estate lease. These shares were issued 
after year end. 
 
Islandmagee Project 
The Project, a joint venture with a subsidiary of Northern Ireland Energy 
Holdings Limited, is designed to store 500 million cubic metres of natural gas. 
During 2009, technical experts developed a design for the storage caverns and 
surface facilities and further progress was made on the Environmental Impact 
Assessment. 
 
 
In June 2009 a successful two-day public exhibition to present information and 
gather feedback on the project was held. Further consultations with stakeholders 
are planned for the end of October 2009 and a target date of year end 2009 has 
been set for submission of the planning application. 
 
 
 
 
 
 
 
 
 
 
Storage asset portfolio development 
The Group made progress with its plans for new gas storage projects in Germany 
and Spain. In Germany, a review of the geology and infrastructure has resulted 
in activity being focused on a salt dome in northern Germany. In Spain, a local 
subsidiary Portland Gas ESP S.L. was formed to develop the Group's Spanish gas 
storage plans. 
 
 
Outlook 
The 2009/10 financial year will again be an active time for the business. The 
Group looks forward to the introduction of investors in the Portland Project and 
to continuing the development and construction of the Upper Osprey site. 
Islandmagee Storage Limited (the project company for the Northern Ireland 
Project re-named during the year from Portland Gas NI Limited) plans to complete 
the Environmental Impact Assessment and submit the Project planning application 
before the end of the 2009 calendar year. In addition the Group will continue in 
its stated objective of developing an international gas storage business. 
  Portland Gas plc 
Consolidated income statement 
For the year ended 31 July 2009 
_________________________________________________________________________ 
 
 
+---------------------------+--------+---------+-------------+--+-------------+ 
|                           |  Note  |         |        2009 |  |        2008 | 
+---------------------------+--------+---------+-------------+--+-------------+ 
|                           |        |         |         GBP |  |         GBP | 
+---------------------------+--------+---------+-------------+--+-------------+ 
| Continuing operations     |        |         |             |  |             | 
+---------------------------+--------+---------+-------------+--+-------------+ 
| Revenue                   |        |         |           - |  |           - | 
+---------------------------+--------+---------+-------------+--+-------------+ 
|                           |        |         |             |  |             | 
+---------------------------+--------+---------+-------------+--+-------------+ 
| Cost of sales             |        |         |           - |  |           - | 
+---------------------------+--------+---------+-------------+--+-------------+ 
|                           |        |         |             |  |             | 
+---------------------------+--------+---------+-------------+--+-------------+ 
|                           |        |         |             |  |             | 
+---------------------------+--------+---------+-------------+--+-------------+ 
| Gross profit/(loss)       |        |         |           - |  |           - | 
+---------------------------+--------+---------+-------------+--+-------------+ 
|                           |        |         |             |  |             | 
+---------------------------+--------+---------+-------------+--+-------------+ 
| Administrative expenses   |        |         | (1,454,441) |  | (1,767,017) | 
+---------------------------+--------+---------+-------------+--+-------------+ 
|                           |        |         |             |  |             | 
+---------------------------+--------+---------+-------------+--+-------------+ 
|                           |        |         |             |  |             | 
+---------------------------+--------+---------+-------------+--+-------------+ 
| Operating loss            |        |         | (1,454,441) |  | (1,767,017) | 
+---------------------------+--------+---------+-------------+--+-------------+ 
|                           |        |         |             |  |             | 
+---------------------------+--------+---------+-------------+--+-------------+ 
| Investment revenues       |        |         |     173,439 |  |     197,396 | 
+---------------------------+--------+---------+-------------+--+-------------+ 
|                           |        |         |             |  |             | 
+---------------------------+--------+---------+-------------+--+-------------+ 
|                           |        |         |             |  |             | 
+---------------------------+--------+---------+-------------+--+-------------+ 
| Loss before taxation      |        |         | (1,281,002) |  | (1,569,621) | 
+---------------------------+--------+---------+-------------+--+-------------+ 
|                           |        |         |             |  |             | 
+---------------------------+--------+---------+-------------+--+-------------+ 
| Taxation                  |        |         |           - |  |           - | 
+---------------------------+--------+---------+-------------+--+-------------+ 
|                           |        |         |             |  |             | 
+---------------------------+--------+---------+-------------+--+-------------+ 
|                           |        |         |             |  |             | 
+---------------------------+--------+---------+-------------+--+-------------+ 
| Loss for the year         |        |         | (1,281,002) |  | (1,569,621) | 
+---------------------------+--------+---------+-------------+--+-------------+ 
|                           |        |         |             |  |             | 
+---------------------------+--------+---------+-------------+--+-------------+ 
|                           |        |         |             |  |             | 
+---------------------------+--------+---------+-------------+--+-------------+ 
| Basic and diluted loss    |   1    |         |       1.82p |  |       2.33p | 
| per share                 |        |         |             |  |             | 
+---------------------------+--------+---------+-------------+--+-------------+ 
|                           |        |         |             |  |             | 
+---------------------------+--------+---------+-------------+--+-------------+ 
 
 
 
 
 
 
 
 
Portland Gas plc 
Consolidated balance sheet 
As at 31 July 2009 
___________________________________________________________________________ 
 
 
 
 
+----------------------------+---------+---------+-------------+--+-------------+ 
|                            |         |         |        2009 |  |        2008 | 
+----------------------------+---------+---------+-------------+--+-------------+ 
|                            |         |         |         GBP |  |         GBP | 
+----------------------------+---------+---------+-------------+--+-------------+ 
|                            |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
| Non-current assets         |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
| Plant and equipment        |         |         |  20,346,503 |  |  15,195,167 | 
+----------------------------+---------+---------+-------------+--+-------------+ 
| Intangible assets          |         |         |   1,821,551 |  |   1,263,659 | 
+----------------------------+---------+---------+-------------+--+-------------+ 
|                            |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
|                            |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
| Total non-current assets   |         |         |  22,168,054 |  |  16,458,826 | 
+----------------------------+---------+---------+-------------+--+-------------+ 
|                            |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
| Current assets             |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
| Trade and other            |         |         |     149,356 |  |     305,520 | 
| receivables                |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
| Available for sale         |         |         |      12,500 |  |      12,500 | 
| financial assets           |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
| Cash and cash equivalents  |         |         |   3,066,502 |  |   9,276,964 | 
+----------------------------+---------+---------+-------------+--+-------------+ 
|                            |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
|                            |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
| Total current assets       |         |         |   3,228,358 |  |   9,594,984 | 
+----------------------------+---------+---------+-------------+--+-------------+ 
|                            |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
|                            |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
| Current liabilities        |         |         |             |  |             | 
|                            |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
| Trade and other payables   |         |         |   (925,202) |  | (1,408,848) | 
+----------------------------+---------+---------+-------------+--+-------------+ 
|                            |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
|                            |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
| Net current assets         |         |         |   2,303,156 |  |   8,186,136 | 
+----------------------------+---------+---------+-------------+--+-------------+ 
|                            |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
|                            |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
| Non-current liabilities    |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
| Obligations under          |         |         | (2,185,741) |  | (1,963,519) | 
| contractual and operating  |         |         |             |  |             | 
| lease agreements due after |         |         |             |  |             | 
| one year                   |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
|                            |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
|                            |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
| Net assets                 |         |         |  22,285,469 |  |  22,681,443 | 
+----------------------------+---------+---------+-------------+--+-------------+ 
|                            |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
|                            |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
| Shareholders' funds        |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
| Share capital              |         |         |   7,038,473 |  |   7,038,473 | 
+----------------------------+---------+---------+-------------+--+-------------+ 
| Share premium              |         |         |   8,576,705 |  |   8,576,705 | 
+----------------------------+---------+---------+-------------+--+-------------+ 
| Merger reserve             |         |         |   8,988,112 |  |   8,988,112 | 
+----------------------------+---------+---------+-------------+--+-------------+ 
| Shares to be issued        |         |         |     746,337 |  |           - | 
+----------------------------+---------+---------+-------------+--+-------------+ 
| Share based payment        |         |         |     177,189 |  |      38,498 | 
| reserve                    |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
| Retained earnings          |         |         | (3,241,347) |  | (1,960,345) | 
+----------------------------+---------+---------+-------------+--+-------------+ 
|                            |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
|                            |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
|                            |         |         |  22,285,469 |  |  22,681,443 | 
+----------------------------+---------+---------+-------------+--+-------------+ 
|                            |         |         |             |  |             | 
+----------------------------+---------+---------+-------------+--+-------------+ 
 
 
 
 
 
 
Portland Gas plc 
Consolidated statement of changes in equity 
For the year ended 31 July 2009 
_____________________________________________________________________________ 
 
 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
|                  |    Share  |     Share |      Merger |   Shares |    Share |    Retained |       Total | 
|                  |   capital |   premium |     reserve |    to be |    based |    earnings |      equity | 
|                  |           |           |             |   issued |  payment |             |             | 
|                  |           |           |             |          |  reserve |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
|                  |       GBP |       GBP |         GBP |      GBP |      GBP |         GBP |         GBP | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
|                  |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
| Balance at 31    |   117,782 |         - |  11,650,514 |        - |        - |   (390,724) |  11,377,572 | 
| July 2007        |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
|                  |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
| Loss for the     |         - |         - |           - |        - |        - | (1,569,621) | (1,569,621) | 
| year             |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
|                  |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
|                  |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
| Total recognised |         - |         - |           - |        - |        - | (1,569,621) | (1,569,621) | 
| income and       |           |           |             |          |          |             |             | 
| expenses for the |           |           |             |          |          |             |             | 
| year             |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
|                  |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
| Issue of equity  |    40,000 |         - |   3,960,000 |        - |        - |           - |   4,000,000 | 
| share capital    |           |           |             |          |          |             |             | 
| (pre- demerger)  |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
| Portland Gas plc | 6,622,402 |         - | (6,622,402) |        - |        - |      -      |           - | 
| capitalisation   |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
| Issue of equity  |   258,289 | 8,576,705 |           - |        - |        - |      -      |   8,834,994 | 
| share capital    |           |           |             |          |          |             |             | 
| (post-demerger)  |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
| Share based      |         - |         - |           - |        - |   38,498 |      -      |      38,498 | 
| payments         |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
|                  |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
|                  |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
| Balance at 31    | 7,038,473 | 8,576,705 |   8,988,112 |        - |   38,498 | (1,960,345) |  22,681,443 | 
| July 2008        |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
|                  |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
| Loss for the     |         - |         - |           - |        - |        - | (1,281,002) | (1,281,002) | 
| year             |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
|                  |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
|                  |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
| Total recognised |         - |         - |           - |        - |        - | (1,281,002) | (1,281,002) | 
| income and       |           |           |             |          |          |             |             | 
| expenses for the |           |           |             |          |          |             |             | 
| year             |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
|                  |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
| Commitment to    |         - |         - |           - |  746,337 |        - |           - |     746,337 | 
| issue shares     |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
| Share based      |         - |         - |           - |        - |  138,691 |           - |     138,691 | 
| payments         |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
|                  |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
|                  |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
| Balance at 31    | 7,038,473 | 8,576,705 |   8,988,112 |  746,337 |  177,189 | (3,241,347) |  22,285,469 | 
| July 2009        |           |           |             |          |          |             |             | 
+------------------+-----------+-----------+-------------+----------+----------+-------------+-------------+ 
 
 
Portland Gas plc 
Consolidated cash flow statement 
For the year ended 31 July 2009 
___________________________________________________________________________ 
 
 
+----------------------------+---------+--------+------------+--------------+--+--------------+ 
|                            |      Note        |            |         2009 |  |         2008 | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
|                            |                  |            |          GBP |  |          GBP | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
|                            |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
| Net cash (used in)         |        2         |            |  (1,175,444) |  |  (1,275,246) | 
| operating activities       |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
| Investing activities       |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
| Interest received          |                  |            |      173,439 |  |      197,396 | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
| Purchase of intangible     |                  |            |    (530,729) |  |  (5,645,493) | 
| assets                     |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
| Purchase of plant and      |                  |            |  (4,678,611) |  |     (63,887) | 
| equipment                  |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
| Purchase of financial      |                  |            |            - |  |     (12,500) | 
| assets                     |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
| Proceeds on disposal of    |                  |            |          883 |  |            - | 
| plant and equipment        |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
|                            |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
|                            |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
| Net cash (used in)         |                  |            |  (5,035,018) |  |  (5,524,484) | 
| investing activities       |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
|                            |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
|                            |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
| Financing activities       |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
| Proceeds on issue of       |                  |            |            - |  |   12,639,999 | 
| ordinary shares            |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
|                            |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
|                            |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
| Net cash generated from    |                  |            |            - |  |   12,639,999 | 
| financing activities       |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
|                            |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
|                            |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
| Net (decrease)/increase in |                  |            |  (6,210,462) |  |    5,840,269 | 
| cash and cash equivalents  |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
|                            |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
|                            |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
| Cash and cash equivalents  |                  |            |    9,276,964 |  |    3,436,695 | 
| at beginning of year       |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
|                            |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
|                            |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
| Cash and cash equivalents  |                  |            |    3,066,502 |  |    9,276,964 | 
| at end of year             |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
|                            |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
|                            |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
|                            |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
| Cash and cash equivalents consist of:         |            |              |  |              | 
+-----------------------------------------------+------------+--------------+--+--------------+ 
|                            |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
| Cash in hand and at bank             |        |            |    3,066,502 |  |    9,276,964 | 
+--------------------------------------+--------+------------+--------------+--+--------------+ 
|                            |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
|                            |                  |            |              |  |              | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
|                            |                  |            | GBP3,066,502 |  | GBP9,276,964 | 
+----------------------------+------------------+------------+--------------+--+--------------+ 
|                            |                  |            |              |  |              | 
+----------------------------+---------+--------+------------+--------------+--+--------------+ 
 
 
Significant non-cash transaction 
The above excludes the settlement of a liability of GBP746,337, where the 
supplier agreed to accept 919,474 new 10p ordinary shares in settlement; the 
shares were issued after year end. 
 
 
Portland Gas plc 
Notes to the financial statements 
For the year ended 31 July 2009 
_____________________________________________________________________________ 
 
 
+----+--------------------------------------------------+------------+------------+ 
| 1. | Loss per share                                   |       2009 |       2008 | 
+----+--------------------------------------------------+------------+------------+ 
|    |                                                  |          p |          p | 
+----+--------------------------------------------------+------------+------------+ 
|    |                                                  |            |            | 
+----+--------------------------------------------------+------------+------------+ 
|    | Basic loss per share                             |       1.82 |       2.33 | 
+----+--------------------------------------------------+------------+------------+ 
|    |                                                  |            |            | 
+----+--------------------------------------------------+------------+------------+ 
|    | The calculation of basic loss per share is based upon a loss of            | 
|    | GBP1,281,002 (2008; GBP1,569,621) divided by the weighted average number   | 
|    | of ordinary shares in issue of 70,384,727 (2008; 67,381,698).              | 
|    | In accordance with IAS 33, diluted earnings per share calculations are not | 
|    | presented as assumed conversion of outstanding share options would be      | 
|    | anti-dilutive, as such the diluted earnings per share is equal to the      | 
|    | basic loss per share.                                                      | 
+----+--------------------------------------------------+------------+------------+ 
 
 
+----+-------------------------------+--+------------+-----+-------------+-------------+ 
| 2. | Cash (used in) operations     |  |            |     |        2009 |        2008 | 
+----+-------------------------------+--+------------+-----+-------------+-------------+ 
|    | Group                         |  |            |     |         GBP |         GBP | 
+----+-------------------------------+--+------------+-----+-------------+-------------+ 
|    |                               |  |            |     |             |             | 
+----+-------------------------------+--+------------+-----+-------------+-------------+ 
|    | Operating loss for the year   |  |            |     | (1,454,441) | (1,767,017) | 
+----+-------------------------------+--+------------+-----+-------------+-------------+ 
|    | Depreciation                  |  |            |     |      21,880 |      19,342 | 
+----+-------------------------------+--+------------+-----+-------------+-------------+ 
|    | Profit on disposal of plant & |  |            |     |         367 |           - | 
|    | equipment                     |  |            |     |             |             | 
+----+-------------------------------+--+------------+-----+-------------+-------------+ 
|    | Decrease in trade and other   |  |            |     |     156,164 |      22,816 | 
|    | receivables                   |  |            |     |             |             | 
+----+-------------------------------+--+------------+-----+-------------+-------------+ 
|    | (Decrease)/Increase in trade  |  |            |     |    (38,105) |     216,121 | 
|    | and other payables            |  |            |     |             |             | 
+----+-------------------------------+--+------------+-----+-------------+-------------+ 
|    | Share option expense          |  |            |     |     138,691 |      38,498 | 
+----+-------------------------------+--+------------+-----+-------------+-------------+ 
|    | Shares issued in lieu of      |  |            |     |           - |     194,994 | 
|    | bonus                         |  |            |     |             |             | 
+----+-------------------------------+--+------------+-----+-------------+-------------+ 
|    |                               |  |            |     |             |             | 
+----+-------------------------------+--+------------+-----+-------------+-------------+ 
|    |                               |  |            |     |             |             | 
+----+-------------------------------+--+------------+-----+-------------+-------------+ 
|    | Cash (used in) operations     |  |            |     | (1,175,444) | (1,275,246) | 
+----+-------------------------------+--+------------+-----+-------------+-------------+ 
|    |                               |  |            |     |             |             | 
+----+-------------------------------+--+------------+-----+-------------+-------------+ 
|    |                               |  |            |     |             |             | 
+----+-------------------------------+--+------------+-----+-------------+-------------+ 
 
 
+----+-------------------------------+--+------------+-----+---------+--+------------+ 
| 3. | Basis of preparation          |  |            |     |         |  |            | 
+----+-------------------------------+--+------------+-----+---------+--+------------+ 
|    |                               |  |            |     |         |  |            | 
+----+-------------------------------+--+------------+-----+---------+--+------------+ 
|    | The financial information set out in this announcement does not comprise the  | 
|    | Group's statutory accounts for the years ended 31 July 2009 or 31 July 2008.  | 
|    | The financial information has been extracted from the statutory accounts of   | 
|    | the Company for the years ended 31 July 2009 and 31 July 2008. The auditors   | 
|    | reported on those accounts; their reports were unqualified and did not        | 
|    | contain a statement under either Section 498 (2) or Section 498 (3) of the    | 
|    | Companies Act 2006 or Section 237 (2) or Section 237 (3) of the Companies Act | 
|    | 1985 respectively and did not include references to any matters to which the  | 
|    | auditor drew attention by way of emphasis.                                    | 
|    | The statutory accounts for the year ended 31 July 2008 have been delivered to | 
|    | the Register of Companies; those for the year ended 31 July 2009 were         | 
|    | approved by the board on 23 October 2009 and will be delivered to the         | 
|    | Registrar of Companies following the Company's Annual General Meeting.        | 
+----+-------------------------------+--+------------+-----+---------+--+------------+ 
 
 
+----+-------------------------------+--+------------+--+------------+--+------------+ 
| 4. | Approval                      |  |            |  |            |  |            | 
+----+-------------------------------+--+------------+--+------------+--+------------+ 
|    |                               |  |            |  |            |  |            | 
+----+-------------------------------+--+------------+--+------------+--+------------+ 
|    | The preliminary announcement was approved by the Board on 23 October 2009.    | 
+----+-------------------------------+--+------------+--+------------+--+------------+ 
 
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 
 
 
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 
focusing 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". 
 
 
Further information is available on the Company's website www.portland-gas.com. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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