Altona Energy Plc Strategy Update

 
TIDMANR 
 
10 August 
2017 
 
                               Altona Energy Plc 
 
                          ("Altona" or "the Company") 
 
                                Strategy Update 
 
The Board of Altona (AIM: ANR) is pleased to provide the following strategy 
update to shareholders: 
 
The Company, along with its joint venture partners Sino-Aus Energy Group Ltd 
("Sino-Aus") and Wintask Group Ltd ("Wintask") (together the "JV Partners") 
have agreed a change in strategy for the exploitation of its coal asset at the 
Arckaringa site, where the Company continues to own three Exploration Licences 
(EL4511, EL4512 and EL4513).  This decision has been made following the 
break-down in negotiations with the current owner of the Petroleum Exploration 
Licence Application 604. 
 
The new strategy will see conventional coal mining techniques employed to 
extract the coal deposits which will then be processed to extract gas for 
electricity generation for the South Australian power grid as well as for the 
production of ethanol and methanol. 
 
The Board of the JV Company will appoint WSP Parsons Brinckerhoff, Australia 
("PB") to produce a report addressing the following four areas: 
 
 1. Establish the existence across the three mining tenements of a "dry" coal 
    deposit(s) of sufficient quantity and quality to sustain a commercially 
    viable and profitable coal mining project(s) dedicated to the production of 
    electricity and/or methanol or ethanol. 
 
 2. If dry deposits are not economically viable, to investigate the probability 
    of a low environmental impact "wet" coal deposit(s) dedicated to the 
    production of electricity and/or methanol or ethanol. 
 
 3. Provide an estimate of the size of power plant (MW capacity) that would be 
    needed to make the project commercially viable and calculate the coal 
    capacity required. 
 
 4. Should the "wet" coal deposit be the most likely option, provide the best 
    available conventional and non-conventional technologies to extract the 
    coal in a manner that will limit or avoid impacting or intersecting the 
    Great Artesian Basin. 
 
The JV Partners have agreed to fund this report. Once PB has complied the 
report, the JV Partners, including Altona, will meet with PB to agree on 
further investigations e.g. drilling, aeromagnetic survey, seismic designed to 
define the target area including prospective mine parameters and scale. 
 Further, the Company will provide PB with all the historic technical data it 
has collated over the years regarding the tenements and the viability of mining 
coal using traditional methods. 
 
Mr Qinfu Zhang, Executive Chairman of Altona, commented, "The Company will now 
investigate a coal to gas operation.  It is a low risk option using well-proven 
methods of extraction and coal conversion.  We have always had two choices to 
develop our extensive coal assets.  To this end we have a vast amount of 
technical data regarding the coal and geology at Arckaringa which we will pass 
on to PB to expedite the delivery of their report. 
 
"We are disappointed that we cannot progress our plans for using the UCG at 
this time but recognise it was a high-risk method of extraction with limited 
rates of success in Australia, to date.  The Board considers that the return to 
traditional coal extraction and processing methods is in the best interests of 
shareholders in the current circumstances. 
 
"In making this decision the board was cognisant of the acute energy deficit in 
South Australia and the opportunity this presents for energy producers." 
 
                                    -ends- 
 
For further information, please visit www.altonaenergy.com or contact: 
 
Altona Energy plc                                    [phone] 
Qinfu Zhang, Executive Chairman 
 
Leander (Financial PR)                               [phone] 
Christian Taylor- Wilkinson 
 
Northland Capital Partners Ltd (Nomad and            [phone] 
Broker) 
Matthew Johnson / Gerry Beaney (Corporate 
Finance) 
John Howes (Corporate Broking) 
 
 
About Altona 
 
Altona is listed on the London Stock Exchange's AIM market.  Its principal 
focus is on the evaluation and development of the Company's flagship Arckaringa 
Project to exploit the significant coal resources contained in three 
exploration licences covering 2,500 sq. kms in the northern portion of the 
Permian Arckaringa Basin in South Australia.  The Project is designed to 
produce syngas products for the Australian market and export from a resource 
exceeding 7.8 billion tonnes of coal (1.3 billion tonnes JORC compliant). 
 
 
 
END 
 

(END) Dow Jones Newswires

August 10, 2017 04:32 ET (08:32 GMT)