Gas storage firm InfraStrata said a proposed Northern Ireland project’s potential “exceeds expectations”.
The AIM listed firm wants to develop an above ground gas storage plant at Islandmagee in County Antrim.
Nearly £500,000 has been conditionally raised through a placing to meet costs associated with the project for the next six months.
In an update, InfraStrata said that since June “considerable efforts” have been made exploring a range of both short and long-term options for future value creation for the company and the project.
And the shelving of Centrica’s Rough storage gas field – which has suffered significant difficulties in recent years – had increased the need for such sites.
The firm said in a statement: “The project has shown that it exceeds the board’s expectations in terms of its ultimate potential.
“In the board’s opinion, this highlights the relative undervaluation of the company at this time.
“The board believes that the recent announcement of the phased closure of the Rough gas storage facility by Centrica plc improves the significant potential of the project as a result of this substantial reduction in gas storage capacity in the UK.”
InfraStrata is in talks with a “number of” parties intere4sted in progressing the Islandmagee project.
The company has not ruled out a possible sale of the project and is also looking for longer term funding, including from the European Union.
Adrian Pocock, Chief Executive of InfraStrata, said: “The company stands at a significant crossroads and I am pleased to confirm that we are extremely encouraged by developments since being elected onto the board.
“The project shows excellent scope to create value for our shareholders. The positive engagement that we have achieved with stakeholders and potential and existing partners has been remarkable.
Energy security of both gas and electricity supplies in the whole of the UK is likely to be adversely affected once Centrica’s Rough facility closes in around two years, and there are increasing concerns and focus on energy security.
“We are pleased that we have the opportunity to support the UK and Irish Governments and their respective economies in ensuring continuity of supply.
“We anticipate that once the UK leaves the EU, it will no longer be able to depend upon the EU requirement for member states to support each other at times of peak energy demand.
“The revised strategy of pursuing new potential monetisation routes in conjunction with a flexible, dynamic modus operandi ensures that opportunities are maximised to the enhancement of the Company’s financial position and future.”