Portland Gas plc the gas storage project development company today announces the commencement of dealings in its shares on AIM following completion of the demerger from New Egdon (renamed Egdon Resources plc) which is also admitted to trading on AIM today.

Seymour Pierce Limited is the Nominated Adviser and Broker and NM Rothschild and Sons are financial advisors to Portland Gas.

Overview of Portland

Portland's business focuses on the development of gas storage projects in the United Kingdom and internationally. It currently has two projects in its portfolio, the first an advanced Project at the Isle of Portland which has been under development for over 3 years, and the second the Larne Lough project in Northern Ireland which was announced in July 2007.

The Isle of Portland project is seeking to develop a major gas storage facility, with the creation of 14 underground storage caverns totaling 1000 mcm (35 bcf) of natural gas - equating to 1% of the UK's annual demand.

Portland Gas has drilled and successfully appraised the salt sequence at Portland and is currently progressing through the planning, financing and tendering for construction processes. The planning application decision is expected to be made during the first quarter of 2008.

The Company is currently evaluating the potential of a Permian salt sequence in the Larne area of Northern Ireland to create salt gas storage caverns. The Company has commenced an Environmental Impact Assessment for the proposed project and has also acquired a 3D seismic programme during October and November 2007 to define the distribution and thickness of the salt within the area of interest. It is anticipated that the results of the seismic programme will be known later in the first quarter 2008.

Portland Gas plc will be led by Andrew Hindle as Chief Executive Officer with Craig Gouws (Chief Financial Officer), Walter Roberts (Legal and Commercial Director), Kenneth Ratcliff (Non-Executive Chairman), Mark Abbott (Non-Executive Director), and Maurice Hazzard (Non-Executive Director) comprising the Board.

Upon admission there will be 67,801,840 ordinary shares in issue.

Commenting on the listing of Portland Gas on AIM, Andrew Hindle, Chief Executive Officer of Portland said: 'Portland Gas has developed a significant presence in the UK energy industry over the past 3 years, and our strategy to develop the Portland project has led to significant shareholder value creation in this time.

'The Company is delighted to be admitted to AIM, following our demerger from Egdon, and we look forward to developing our portfolio of projects in the UK and internationally over the coming years in a sector that is rapidly becoming an important element of UK energy security.'

As a personal note, if the Isle of Portland project is given the go-ahead I wouldn't be surprised to see this rise by at least 50%.

Today's news has taken PTG just a penny shy of 3. Not that it's any real guide but Seymour Peirce have a target price of 5.50 which I'm sure is based on getting the required go-ahead for the Portland project. Still, if it does that's a nice 80% rise.

Well we smashed through 3 today - this baby's running now!!!

any more news people ,

The main reason for the recent charge will have been the news that on 6th February the planning committee of Weymouth & Portland Borough Council voted unanimously to support the planning application for the gas storage facility on Portland subject to Dorset County Council, the determining authority for the planning application, being satisfied with the applications for the gas storage and other facilities associated with the Project. This by no means makes the decision a formality but it certainly points in the right direction :-)

GREAT START

Portland Gas reported a pretax loss of 798,170 pounds for the first half to end-January, in its first results since the demerger from oil and gas exploration company Egdon Resources Plc. The company attributed the losses mainly to the administrative costs of listing on AIM in January this year, which amounted to 927,433 pounds.

The company said Dorset County Council planning permission for its Portland gas store is now 'imminent', following permission granted in February from the Weymouth & Portland Borough Council. It said there has been expressions of interest in possible joint ventures in the project. Construction of the gas store is expected to cost 500 million pounds and take seven years to build. Gas storage is expected to become available from 2011 in a phased process, with full storage capacity expected in the winter of 2015.

Portland also expects to seek planning permission for its Larne Lough project in Northern Ireland by the second half of 2009, and is currently in talks with potential partners for that project.

In general, the company said it is looking to expand into other markets outside the UK, including liberalised markets in Europe and North America.

Portland Gas has announced the results of the 3D seismic programme acquired during October and November 2007 by its wholly owned Northern Ireland subsidiary Portland Gas NI Limited. The interpretation of the data has indicated that the Permian salt sequence encountered in 1981 in the Larne-2 borehole extends as anticipated under Larne Lough into the area where Portland Gas was granted an exploration licence in 2007 by The Crown Estate. Interpretation of the seismic data indicates that the salt in the target area is at a depth of approximately 1400 metres with a thickness of approximately 200 meters. Portland Gas is now planning to drill a borehole later in 2008 on Islandmagee to confirm the seismic interpretation and to take cores of the salt sequence to complete the design of the caverns to store natural gas. The Company is seeking a suitable site from which to drill the borehole within the area of its onshore mineral licence, awarded in 2007 near Ballylumford by the Department of Enterprise, Trade and Investment.

The Company is also negotiating terms with a strategic partner to take a 25-35% interest in the project. Portland Gas will be the operator of the proposed joint venture.

Portland Gas is now undertaking an Environmental Impact Assessment with the intention of submitting a full planning application for the gas storage project in 2009, subject to concluding any necessary landowner agreements. The Company will liaise closely during 2008 with all stakeholders to ensure that the surface facilities, required to create the caverns and compress the gas into store, are located in the most appropriate place and designed to minimise visual and environmental impact. The caverns would be created within the salt sequence below Larne Lough but accessed from directionally drilled boreholes on the land. The nearest point of connection to the national gas infrastructure is at the Scotland to Northern Ireland Pipeline above ground installation at Ballylumford.
Network, market, technical and economic analyses are also underway to determine the most appropriate storage capacity and the gas injection and withdrawal rates for the facility. Initial studies indicate that the facility could have a storage volume of up to 500 million cubic metres (18 billion cubic feet) of gas. In this case some reinforcement of the current gas infrastructure will be required to manage the injection and withdrawal of gas and provide sufficient flexibility to meet demand spikes for customers.

Portland Gas would ensure that the capacity availability is Third Party Access compliant under Northern Ireland and European legislation. It is anticipated that a proportion of the capacity in the facility would be made available under long-term contracts to facilitate the debt financing of the project, however the majority would be auctioned on an annual basis. Customers could be based in Northern Ireland, the remainder of the UK or the Republic of Ireland.

Commenting on the project Andrew Hindle, the CEO of Portland Gas plc, said: 'We are delighted with the results of the seismic programme. The asset would have a significant positive impact on the dynamics of the gas market in the whole of Ireland and add significantly to security of gas supplies. Indeed, in winter, Northern Ireland could become a net exporter of gas from its current position of 100% dependence on imports.'

Took profits (small) earlier on (a month ago)...not in at the moment...this could go either way...I might buy back in...if available funds...it's as risky as FRR...perhaps even more so !

It does appear to be an all or nothing play in terms of the Portland gas store but as the posting above suggests they have more than one iron in the fire.

Well queen1... I've decided to give this one another go....until the awaited RNS....there also could be a delay....with the planning authorities needing more time to decide or they might want certain alterations to the planning application !...so a punt it is !

I think it's a decent punt required field. The SP has been up the last two days on the anticipated news. As the company itself says, a decision is imminent so now could be a very good time to climb on board.

D-Day is confirmed:

Portland Gas said its proposal for a gas storage scheme to Dorset County Council will be considered by the Council at its next meeting on May 16. The company also expects the application for hazardous substances consent for the storage site will also come up at the meeting.

Crunch day is coming....I have a small punt on these....no doubt that some people will have a fortune on this one....could go either way....heavens help those that have massive spreads or cfd's and we then have a negative result, but it does look promising....though there could be a further delay in planning and a postponement of the approval until the autumn or next year (that is what is worrying me), I'm surprised that there aren't more bloggers here !, "what's hot" tip this one to have a positive outcome.

Indeed it is. And I can't believe more people haven't got on board this thread. This is now a 10-bagger for me from when I bought the original Egdon Resources shares and if the vote goes the right way that multiple will keep rising :-)

Any idea what time the meeting is and when an announcement is likely anybody ?

Ladies and Gents...starting to moooove....! oh boy ! hope goodddy news is commmming !, otherwise ...a bad punt !.

Bingo !

Control tower to Porland Gas : you have permission to take off....!

All seven permits granted....congratulations to Portland Gas management....tremendous result !

Well worth the wait!!!!!

The Directors of Portland Gas plc (AIM: PTG) ('the Company' or 'Portland Gas') are pleased to announce that today's planning committee meeting of Dorset County Council ('DCC') resolved to grant planning permission to Portland Gas' wholly owned subsidiary, Portland Gas Storage Limited, to build a deep underground salt cavern gas storage facility at Portland, Dorset.

Portland Gas submitted a total of seven applications, one to the Department for Business, Enterprise and Regulatory Reform (BERR, formerly the DTI) for the necessary pipeline and a further six to DCC for the permanent facilities and the temporary storage areas for the pipeline during construction. These six applications all received individual approval at the meeting of the planning committee of DCC and a separate application for Hazardous Substances Consent was also granted. BERR is expected to announce its decision in the near future.

The estimated cost of construction of the project is 500 million. The Company's financial advisers, NM Rothschild & Sons, will now commence a formal process with potential joint venture partners who have already expressed interest in participating in the project. This process will be targeted at introducing one or more partners as shareholders of up to 50% of the project in consideration for funding the construction costs.

Portland expects this process to complete by late summer 2008. In the meantime some long-lead design work will be undertaken to keep the project timing on track for completion in 2015.

Commenting on the planning approval, Andrew Hindle, the CEO of Portland Gas, said:

'We're naturally very happy with this decision, especially as it was made in Dorset by local representatives who know and care for this special part of the world.

'The decision is good news for Dorset, and for the nation as a whole today. In national terms, the need for gas storage is urgent and our Portland project will be very important in safeguarding our energy security in the future. Construction will commence this summer and when completed in 2015 will provide a facility to store 1 billion cubic metres of natural gas, approximately 1% of UK annual demand.

'In local terms, the scheme brings many benefits, including the 2 million plus investment in community projects over the next two years including the creation of the Old Engine Shed visitor centre on Portland, for which there was also a resolution to grant permission.'