Altona Energy (LSE:ANR)
Historical Stock Chart

From May 2019 to May 2024

TIDMANR

RNS Number : 7553A

Altona Energy PLC

07 February 2011

Altona Energy Plc / Index: AIM / Epic: ANR / Sector: Exploration & Production

7 February 2011

Altona Energy Plc ('Altona' or 'the Company')

Arckaringa Project BFS Work Programme Update

Altona Energy Plc, the AIM listed Australian based energy company, is pleased to provide a positive update on progress at the Arckaringa Coal-to-Liquids ('CTL') Project in South Australia. This update specifically concerns the Bankable Feasibility Study ('BFS') and the implementation of a work programme aimed at evaluating the conversion opportunities for the estimated 7.8 billion tonne Arckaringa coal resource, of which 1.287 billion tonnes are currently JORC complaint.

Overview

-- Appointment of General Prospecting Institute of the China National Administration for Coal Geology ('CNACG') to advance technical studies as part of BFS work programme for the Arckaringa Project - studies well underway and on schedule

-- Recent site visit attended by all parties including Altona, CNOOC-NEIA and CNACG

-- Checking and confirmation of data parameters completed for the existing geological database and the physical conditions governing the location of the Wintinna Coal Mine and supporting infrastructure

-- Preparing documentation to gain an Exploration Work Approval and to select local drilling and hydro-geological companies for field programmes

-- Aiming to design field drilling programmes to provide the detailed information needed for mine design and the groundwater management programme by April 2011

Altona's Managing Director, Chris Schrape, said, "It was exciting to join with our JV partner and technical consultants on the ground in South Australia as we collaborate in taking significant steps in advancing our BFS work programme. The work now in progress will build a solid platform for the detailed evaluation of the mining aspects at Arckaringa and is consistent with the structured approach required for a BFS on a large scale clean coal conversion project with a base case capacity of 15 mtpa."

CNACG has been appointed to advance technical studies as part of the BFS work programme for the Arckaringa Project. CNACG commenced work in the fourth quarter of 2010 under a contract approved by Altona and its Joint Venture partner CNOOC-NEIA, the Australian subsidiary of CNOOC, one of China's major oil companies. Consequently, the first three of the [previously announced] studies listed below are well underway:

-- Detailed review of coal deposit geology and consideration of supplemental drilling;

-- Groundwater investigation and verification;

-- Groundwater management research and design;

-- Environmental baseline studies;

-- Open cut coal mining methodology options; and

-- Product market research.

A technical team from CNACG visited South Australia from 19-27 January 2011. During this time they held a series of technical data review sessions with the JV Operating Team and met local hydrogeological and other consultants, including those employed during the Altona Pre Feasibility Study ('PFS') work. The team also visited the site and confirmed the parameters for the existing geological database and the physical conditions governing the location of the Wintinna mine and supporting infrastructure, including the transport corridor options to link into the nearby national rail and road network.

To date, CNACG has reviewed and consolidated all original technical data concerning the Wintinna deposit, including Altona's PFS work and historical data. CNACG is now focussed on a Geological Report on licence EL4512 to assist the development of the long term plan for the Wintinna Coal Mine, which it aims to complete during March 2011. It also aims to complete comprehensive geological and hydro-geological research reports to underpin the design of the field drilling programmes that will provide the detailed information needed for mine design and the groundwater management programme by April 2011.

In anticipation of the completion of the CNACG reports, the JV partners are preparing documentation to gain the required Exploration Work Approval ('EWA') from the South Australian Government and to select the local drilling and hydro-geological companies for the field programmes, which are scheduled to commence in mid 2011. Further details on the field programmes, including their scope and duration, will be announced when the EWA is in place.

**ENDS**

 
 Christopher Lambert   Altona Chairman             Tel: +44 (0) 20 7024 
                                                    8391 
 Christopher Schrape   Altona Managing Director    Tel: +44 (0) 20 7024 
                                                    8391 
 Simon Edwards         Evolution Securities        Tel: +44 (0) 20 7071 
                        Ltd                         4300 
 Tim Redfern           Evolution Securities        Tel: +44 (0) 20 7071 
                        Ltd                         4300 
 Elisabeth Cowell      St Brides Media & Finance   Tel: +44 (0) 20 7236 
                        Ltd                         1177 
 Hugo de Salis         St Brides Media & Finance   Tel: +44 (0) 20 7236 
                        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

MSCUNVNRAUAURAR