21 Apr 2010 07:00
Altona Energy Plc / Index: AIM / Epic: ANR / Sector: Exploration & Production
21 April 2010
Altona Energy Plc ('Altona' or 'the Company')
CNOOC-NEIA's Submission of FIRB Application
Altona Energy Plc, the AIM listed Australian based energy company, notes that CNOOC New Energy International (Australia) Pty Ltd ('CNOOC-NEIA'), has lodged its formal application to Australia's Foreign Investment Review Board ('FIRB') for its participation in, and establishment of, the Arckaringa Unincorporated Evaluation Joint Venture ('the JV'). Formed specifically for the JV, CNOOC-NEIA is an Australian subsidiary of CNOOC, one of China's major oil companies. Senior executives of Altona joined members of the CNOOC-NEIA team in Canberra, to meet with FIRB officials and make the formal application.
Following recent assessment under the Australian Government's foreign investment policy, CNOOC was able to proceed with its US$40 billion, 20 year agreement with BG Group to supply China with liquefied natural gas. Martin Ferguson, Australia's Energy Minister, noted at the time of the deal that it would be a commitment to strengthen Australia's 'healthy and mutually beneficial' relationship with China. Furthermore, the latest FIRB report (for the period 2007-08) shows that China was the sixth largest investor in the Australian economy over that period with over 1,700 applications assessed favourably by FIRB, resulting in China investing over A$5.3 billion in Australia's resources sector alone. The Board of Altona remain confident that CNOOC-NEIA's application will be positively assessed.
**ENDS**
For further information visit www.altonaenergy.com or please contact:
| 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 Ltd | Tel: +44 (0) 20 7071 4300 |
| Tim Redfern | Evolution Securities Ltd | Tel: +44 (0) 20 7071 4300 |
| Paul Youens | St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
| Hugo de Salis | St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 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 for the BFS 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.