Baron Oil is weighing up its options on whether or not to snap up a slice of the Islandmagee storage project in Northern Island.
Chief executive Malcolm Butler said the firm was assessing what, if any, repercussions the closure of the Rough gas storage facility in the UK North Sea would have on gas prices before making a final decision.
Under a deal with Infrastrata, Baron can acquire a 15% stake in the Islandmagee Storage Limited Project for £1,536,498.
The company leader said: “We are pleased to have secured an extension of the option to 31 March 2017, as this will give us more time to assess progress on the Islandmagee storage project as the situation in the field unfolds, keeping an eye on the impact the closure of the Rough gas storage facility, in the UK North Sea, may have on gas prices in the UK. Additionally the early repayment of the Loan provides Baron more financial flexibility for us to begin to investigate new projects.”
The announcement comes after, Infrastrata repaid a EUR1.8million loan to Baron Oil to drill the Islandmagee-1 well.
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