LONDON (Alliance News) - Altona Energy PLC on Monday said its annual pretax loss narrowed in line with a fall in administrative expenses as it continues to focus on progressing the Arckaringa coal project.
Altona's pretax loss narrowed to GBP1.3 million in the year to the end of June from GBP2.4 million a year earlier, in line with a cut to its administrative expenses. The company does not generate any revenue.
The year was spent working on the Arckaringa coal joint venture in Australia, and Altona said this will remain its focus in the current financial year.
Earlier this month, Altona and its partners reached a deal to amend the terms of the project. Under the terms of the revised agreement, Altona's partners, Sino-Aus Energy Group Ltd and Wintask Group Ltd, will invest a maximum of USD33.0 million in four stages in the project. An initial drilling programme will be planned as part of a bankable feasibility study, set to be completed within three years.
In addition, Sino-Aus will provide GBP1.25 million in working capital to Altona in two tranches, subject to certain conditions.
"In a period of falling oil and coal prices we were delighted that Sino-Aus have seen the potential in the Arckaringa project and have committed to join us in its development. We are confident that working with our joint venture partners will enable the acceleration of the project and we look forward to informing the market of developments in due course," said Altona Executive Chairman Qinfu Zhang.
Shares in Altona Energy were flat at 0.3999 pence on Monday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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