Rivara Gas Storage Now 100 Pct Owned by IGM, Italy

Independent Resources announced changes to the ownership structure of the joint venture company holding the Company’s Rivara underground gas storage project.

Shareholders entered into a mutually satisfactory settlement agreement whereby ERG SpA, the minority shareholder of the joint venture company exited the gas storage project and transferred its interest to Independent Gas Management. As a result Rivara Gas Storage srl is now 100% owned by IGM, in turn a wholly-owned subsidiary of IRG, and has changed its name into Rivara Gas Storage srl.

Pursuant to this transaction, ERG Spa has contributed additional capital into Rivara Gas Storage srl in the sum of 1.4 million euros and forgiven 357,000 euros in loans. In return, ERG Spa’s obligation to contribute further capital in future has been cancelled. The cash balance at this subsidiary is now approximately 1.8 million euros.

This transaction extinguishes a deferred and contingent net receivable of £2.8 million, which will result in a debit to reserves in the 2013 accounts of £1.5 million. The holding value of the Rivara asset at the group level is £5.3 million as at 30.09.2012.

Grayson Nash, Executive Chairman, commented “This agreement was amicable and consistent with each party’s plans to concentrate on its own affairs. The significant additional group liquidity will assist with our exciting plans for expanding our E&P activities going forward”.

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LNG World News Staff, November 23, 2012; Image: ERG Rivara Storage