Infrastrata repays loan from Baron Oil early

In May 2015, Baron provided €1.8m to fund Infrastrata's working capital requirements until it completed the work programme for the Islandmagee gas storage project in Northern Ireland, which would release a grant of equal size from the European Commission.

The loan carried an interest rate of 8% and included two options allowing Baron Oil to extend the period of the loan until 31 December 2016 and to convert the entire balance into a 15% equity stake in Infrastrata's subsidiary Islandmagee Storage Limited.

If the option were excercised Infrastrata and its project manager Moyle Energy Investments would provide the necessary shares pro-rate.

The option has now been modified to run until 31 March 2017 and allows Baron to purchase a 15% interest in IMSL for £1,536,498.

Repayment of the loan meant the interest due under the terms of the facility would be lower had Baron chosen to extend it, Infrastrata said in a statement.

As of 09:43 BST shares in Infrastrata were up by 14.89% at 1.35p.