Altona commences feasibility study

AIM-quoted Altona Energy and its Chinese joint venture partner CNOOC-NEIA have started the bankable feasibility study on the Arckaringa project. There is an estimated 7.8bn tonne Arckaringa coal resource (of which 1.28bn tonnes is JORC compliant) in South Australia. The plan is to turn the resource into low sulphur distillate and generate power from the site. The bankable feasibility study will cost £24m and it will be funded by CNOOC-NEIA. Hydro-geological drilling and field programmes will start in the middle of 2011 as part of the groundwater management research. The cash outflow from operations increased from £392,000 to £719,000 and there were a further £356,000 of capitalised costs.