Baron Oil shares up after modification to Islandmagee options

Baron Oil announced on Monday that it has agreed to a modification of the option it holds to acquire equity in Islandmagee Storage, the gas storage development company owned 90% by InfraStrata.

On 19 August, InfraStrata announced that it had repaid a loan from the AIM-traded Baron and had amended the option which accompanied the loan from Baron, so that Baron had an option to acquire a 15% interest in IMSL for a payment of £1.54m until 31 March.

“This option has been revised, so that Baron now has an option to acquire the number of ordinary shares of 1p in InfraStrata that represents 16.666% of the enlarged ordinary share capital of InfraStrata for a payment of £1.54m, until 31 March 2017,” the company’s board said in a statement.

“Exercise of the option in full is conditional on InfraStrata having the requisite authorities under the Companies Act 2006 to issue new ordinary shares in the company, which will be sought at the company's next general meeting of shareholders.”

At 1323 BST, shares in Baron Oil were up 11.58% at 0.53p.