ANR Altona

 

TIDMANR 
 
RNS Number : 5059P 
Altona Energy PLC 
19 July 2010 
 

  Altona Energy Plc / Index: AIM / Epic: ANR / Sector: Exploration & Production 
19 July 2010 
                  Altona Energy Plc ('Altona' or 'the Company') 
                            Arckaringa Project Update 
 
Altona Energy Plc, the AIM listed Australian based energy company, is pleased to 
announce an update on the Arckaringa Unincorporated Evaluation Joint Venture 
('the JV') with CNOOC NEIA, a subsidiary of CNOOC, one of China's major oil 
companies.  The Company has successfully completed the extension and transfer of 
interests in the Exploration Licences ('EL's) central to the JV and can confirm 
that the appointment of the Study Engineer selected by Altona is currently 
pending the completion of CNOOC-NEI approval processes. 
 
The South Australian Minister for Resources Development's consent for both the 
new term of the EL's and for the terms of the JV Agreement, together with the 
recent successful FIRB assessment, concludes the actions necessary to satisfy 
the Condition Precedent regarding Australian Federal and State Government 
approvals for the JV Agreement to become effective. 
 
Altona's Managing Director Chris Schrape commented that, "The granting of the 
new exploration licences and consent for the transfer of a 51% interest to our 
JV partner in the Arckaringa Project, in return for their full funding of the 
BFS, provides security to the JV and underpins its work on the project.  Most 
recently, leaders from the Chinese and Australian Governments, alongside the 
President of CNOOC itself, joined us at the ceremonial signing of the JV, again 
demonstrating the level of support for this project and its potential to 
alleviate South Australia's forecasted energy shortfalls." 
 
Extension and Transfer of Exploration Licences 
The Company has completed the necessary steps to extend the term of its 
Exploration Licences and to effect the transfer of interest in the EL's, as 
required under the Arckaringa Unincorporated Evaluation Joint Venture ('JV 
Agreement') with CNOOC NEIA. 
 
Combined, the EL's contain an estimated 7.8 billion tonne coal resource (non 
JORC), of which 1.287 billion tonnes is JORC compliant, and in the opinion of 
Altona's Board, represent one of the world's largest undeveloped energy banks, 
capable of conversion into high value products such as diesel fuels, power and 
industrial feed-stocks. 
 
The term of the original EL's held by Arckaringa Energy, Altona's wholly owned 
subsidiary, expired as scheduled on 5 June 2010.  Based on the facts that all 
previous expenditure and reporting commitments have been met by the Company and 
that firm development plans are in place for the future, the SA Government 
through PIRSA have granted 'Subsequent Exploration Licences'.  These subsequent 
EL's have new numbers, but otherwise cover exactly the same areas in the 
Arckaringa Basin of South Australia.  The minimum annual expenditure commitments 
are, as per normal policy for the grant of subsequent EL's, double those of the 
previous EL's, but the anticipated expenditure under the BFS will more than 
cover these commitments.  Details of the EL's are as follows: 
 
+--------------+------------+------------+----------+---------------+ 
| EL Area      |  Previous  |Subsequent  |  Area    |  Min. Annual  | 
| Designation  | EL Number  | EL Number  | (sq.km)  |  Expenditure  | 
|              |            |            |          |  Commitment   | 
|              |            |            |          |     (A$)      | 
+--------------+------------+------------+----------+---------------+ 
| Westfield    |    3360    |    4511    |   920    |    240,000    | 
+--------------+------------+------------+----------+---------------+ 
| Wintinna     |    3361    |    4512    |   868    |    230,000    | 
+--------------+------------+------------+----------+---------------+ 
| Murloocoppie |    3362    |    4513    |   804    |    220,000    | 
+--------------+------------+------------+----------+---------------+ 
 
Study Engineer 
As required under the JV Agreement, the BFS Study Engineer appointment must be 
ratified by both JV parties.  The appointment of the Study Engineer selected and 
proposed by Altona, following a rigorous bidding process involving many of the 
world's leading project engineering firms, is currently pending the completion 
of CNOOC-NEI approval processes.  During the period leading up to the formal 
appointment, Altona and CNOOC-NEI have been actively working with the Study 
Engineer designate on finalising detailed work programmes and budgets to be 
agreed by the JV parties. 
 
                                    **ENDS** 
 
For further information visit www.altonaenergy.com or please contact: 
 
+----------------+----------------------+------------------------+ 
| Christopher    | Altona Chairman      | Tel: +44 (0) 20 7024   | 
| Lambert        |                      | 8391                   | 
+----------------+----------------------+------------------------+ 
| Christopher    | Altona Managing      | Tel: +44 (0) 20 7024   | 
| Schrape        | Director             | 8391                   | 
+----------------+----------------------+------------------------+ 
| Simon Edwards  | Evolution Securities | Tel: +44 (0) 20 7071   | 
|                | Ltd                  | 4300                   | 
+----------------+----------------------+------------------------+ 
| Tim Redfern    | Evolution Securities | Tel: +44 (0) 20 7071   | 
|                | Ltd                  | 4300                   | 
+----------------+----------------------+------------------------+ 
| Paul Youens    | St Brides Media &    | Tel: +44 (0) 20 7236   | 
|                | Finance Ltd          | 1177                   | 
+----------------+----------------------+------------------------+ 
| Hugo de Salis  | St Brides Media &    | Tel: +44 (0) 20 7236   | 
|                | Finance Ltd          | 1177                   | 
+----------------+----------------------+------------------------+ 
 
Notes 
Altona Energy Plc is an AIM listed Australian based energy company.  Its asset 
is an estimated 7.8 billion tonne coal resource (non-JORC) in the Arckaringa 
Basin of South Australia (JORC-compliant: 1.287 billion tonnes).  This is 
considered by the Board to be one of the world's largest untapped energy banks. 
Per Jacobs Engineering's study for the Company, assuming a 50% conversion of CTL 
fuels and 50% to synthetic gas ('Syngas'), Arckaringa total coal resources (both 
JORC and non-JORC) would represent respectively 28% and 29% of current North Sea 
remaining proven reserves of 10,900mb of oil and 114,800 bcf of natural gas. 
 
Altona has already accomplished a number of key phases in its development: 
 
·    The Company has agreed the terms of a joint venture agreement with 
CNOOC-NEI, a subsidiary of Chinese oil major China National Offshore Oil 
Corporation, to accelerate the Arckaringa Project towards commercialisation. 
·    Under the terms of the agreement, CNOOC-NEI will fund the bankable 
feasibility study ('BFS') for a coal mine and an integrated value-added project. 
·    The current base case is a 10mb per year CTL plant and 560MW co-generation 
power facility. 
·    CNOOC-NEI will also act as the operator and take responsibility for 
assessing the full potential of the coal resource, in return for a 51% interest 
in the exploration licences. 
·    It is envisaged that numerous new additional projects may also be opened up 
to create a multi-project, multi-national business. 
 
CTL 
The quality of the Company's coal is suitable for conversion to synthetic gas 
('Syngas'), using existing commercial CTL technologies.  The process involves 
two major stages; 
1.   gasification to produce Syngas rich in hydrogen and carbon, 
2.   a liquefication stage where the Syngas is reacted over a catalyst to 
produce high quality, ultraclean synthetic fuels and chemical feedstocks. 
CTL is a prime example of clean coal technology - the associated combined cycle 
units produce negligible sulphur oxides, significantly less nitrogen oxides and 
10-20% less CO2 per unit of power generated than a conventional coal fired 
plant, whilst carbon capture and storage offers the potential to reduce the 
overall greenhouse gas emissions from CTL to below the 'well to wheel' level of 
fuels derived from crude oil.  The technology is best demonstrated in South 
Africa, where currently 30% of the country's gasoline and diesel fuel needs are 
met through CTL plants. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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