30 May 2008 07:00
Altona Resources Plc / Index: AIM / Epic: ANR / Sector: Exploration & Production
30th May 2008
Altona Resources Plc ("Altona Resources" or "the Company")
Arckaringa Project BFS Update
Altona Resources Plc, the Australian based energy company, announces that it is proceeding to the final stage of the Bankable Feasibility Study ("BFS") for its Arckaringa Coal to Liquids and Power Project in South Australia. This follows the successful completion of the key technical aspects of the Pre-Feasibility Study ("PFS").
The Company's PFS has incorporated technical reports from a team of leading advisers and consultants of international standing, including:
Jacobs Consultancy (UK) - Coal to Liquids and Power
Minarco MineConsult (Australia) - mine costs and design
Resource and Environmental Management/Aquaterra (Australia) - groundwater studies and modelling
Snowden (Australia) - geotechnical evaluation
QCC Resources (Australia) - coal evaluation programme management
ACIRL-ACTEST (Australia) - coal testing and analysis
Royal Bank of Scotland (RBS) - Project Finance Advisor and Project Economic Model
Hatch (UK) - due diligence advisers to RBS
Hatch (Australia) - Pre-Feasibility Gap Analysis, Final Feasibility Study Schedules and Cost Estimates
McLennan Magasanik Associates (Australia) - electricity market evaluation
SCM Advisory (Australia) - fuel market and transport options evaluation
To facilitate the transition from PFS to the final stage of the BFS, the Company has commenced the process of selecting a world class project engineering company to be the Study Engineer. Altona has received strong expressions of interest from leading engineering companies to take on this role and will be announcing the appointment of the successful candidate in due course. The Company is also taking steps to put in place a team of experienced staff to oversee this critical stage of project development.
Altona Chairman Chris Lambert said, "The Company has built a firm technical basis to proceed and we are delighted to announce that with the step up to the final stage of BFS, we are effectively shifting the Arckaringa Project onto a development footing. This is a key milestone for the Company and I would like to personally thank our team of leading advisers and Altona management for the extensive work undertaken and in reaching this exciting next stage of development.
"The Company has advised the South Australian government that we are proceeding to BFS and we look forward to continuing our very positive working relationship with the various government departments. Further information in relation to the selection of the BFS management team and study engineer will be provided in due course."
A JORC Resources Statement, focussing on the optimum area of the Wintinna coal deposit and incorporating the coal quality and seam data from the recently completed field drilling programme, is currently being prepared in advance of the BFS final stage.
**ENDS**
For further information visit www.altonaresources.com or please contact:
| Christopher Lambert | Chairman | Tel: +44 (0) 207 024 8391 |
| Christopher Schrape | Managing Director | Tel: +61 (0) 417 984 434 |
| Hugh Oram | Nabarro Wells & Co. Ltd | Tel: +44 (0) 207 634 4705 |
| Alastair Stratton | Matrix Corporate Capital LLP | Tel: +44 (0) 207 925 3300 |
| Victoria Thomas | St Brides Media & Finance | Tel: +44 (0) 207 236 1177 |
Notes to Editors:
About Altona Resources
Altona Resources Plc is an Australian based energy Company that was admitted to trading on AIM in March 2005. Altona's primary focus is the completion of a bankable feasibility study for its wholly owned Arckaringa Project for an integrated 10 million barrel per year Coal to Liquid ('CTL') plant with a 560 MW co-generation power facility.
The Company holds, through its wholly owned subsidiary Arckaringa Energy Pty Ltd, a 100% interest in three exploration licences covering 2,500 sq. kms in the northern portion of the Permian Arckaringa Basin in South Australia. These include three coal deposits, Westfield (EL3360), Wintinna (EL3361) and Murloocoppie (EL3362). All three lie close to the Adelaide to Darwin railway and the Stuart Highway. Containing more than 7.5 billion tonnes of coal (based on previous JORC standards) these coal deposits are effectively one of the world's largest undeveloped energy banks, capable of conversion into clean liquid fuels, low cost power and high value industrial feedstocks.
About Coal-to-Liquids (also see www.altonaresources.com)
CTL is a proven technology which converts coal into more environmentally clean and manageable energy sources including gas and synthetic fuels. The process involves two major stages, gasification to produce synthetic gas ("Syngas") rich in hydrogen and carbon, and 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.