Altona Energy Regulatory News (ANR)

14 Feb 2006 07:01

Altona Resources PLC14 February 2006 14 February 2006 Altona Resources Plc ("Altona" or "The Company") World leading engineering Consultants appointed for Coal-to-Oil Study Altona Resources Plc (AIM: ANR) has commissioned Jacobs Consultancy ("Jacobs"),one of the world's largest and most diverse providers of professional technicalservices, to carry out a feasibility study on the four leading gasificationtechnologies suitability to Arckaringa Coal for the production ofenvironmentally-friendly, ultra-clean (0% sulphur) diesel fuel, aviation fueland other applications. Phase One of the Jacobs coal to oil study, which will be conducted inconjunction with the Company's planned drilling programme at Arckaringaannounced in November 2005, is expected to be concluded by no later than earlyin the second quarter of 2006. It is intended to identify a preferredgasification technology for the coal feedstock available from Arckaringa. Coal to Oil Coal based FT technology(1) can be used to produce a wide range of productsincluding diesel fuel, aviation fuel, fuel cell fuel, chemicals (includingdetergents, plastics, synthetic plastics and synthetic rubber), waxes and steamfor electricity production. Following preparation (by drying or adding water), the coal feedstock is fed toa gasifier together with oxygen to produce raw synthetic gas ("syngas"). The rawsyngas is then conditioned by cooling to generating steam and carbon monoxideshifting (both subject to gasification technology adopted) and acid gas removalto produce clean syngas with 0% sulphur content and low levels of carbondioxide. The clean syngas is then routed to a FT synthesis plant for processinginto liquid hydrocarbons. The offgas from the FT synthesis plant is then fed toa gas turbine to generate electricity. Additional steam, generated from theexhaust gas leaving the gas turbine is combined with the earlier steam togenerate more electricity in a steam turbine. Coal based FT technology can have the added benefit of substantial powergeneration capability which can contribute to positive economics and base loadsupply for the state of South Australia. Christopher Lambert, Chairman of Altona, commented: "The appointment of Jacobsrepresents a significant step on the road to bringing the Arckaringa resource tobeing a substantial project. Arckaringa represents a potentially strategic coalresource, given its size and long term supply potential, that could be furtherenhanced by successful application of coal-to-oil technology. Appointment of Consultants Altona also announces the appointment of Bill McIntosh and Chris Schrape asconsultants to the Arckaringa Project. Chris Schrape, has more than 25 years' experience in the resource and miningindustries. He was most recently Chief Executive Officer of Griffin Coal, aPerth based company for whom he worked from 1997- 2004. Before that he spentsome 20 years with Rio Tinto in a variety of senior coal marketing andmanagement roles. Bill McIntosh is a widely respected mining engineer with over 33 years'international experience who has played a key role in mining projects inAustralia and globally. The majority of his career has been involved with opencut coal mining developments. Mr McIntosh has a mining engineering degree fromthe University of Melbourne and Master of Science (Mining) degree from Queen'sUniversity in Canada. He is a member of the Australasian Institute of Mining andMetallurgy and the Mineral Industry Consultants Association, as well as being aChartered Professional (Management). "The appointment of Bill McIntosh and Chris Schrape gives the Company access tosubstantial experience in coal resources development. The Board and I lookforward to benefiting from their contribution to the Company at a managementlevel", Mr Lambert said. -ends- For further information please contact: Altona Resources Plc Nabarro Wells & Co Limited Parkgreen CommunicationsChristopher Lambert, Chairman Hugh Oram, Director Justine Howarth / Victoria Thomas+44 (0) 20 7016 5100 +44 (0) 20 7710 7400 +44 (0) 20 7493 3713 Notes to Editors: The Arckaringa Coal Project: The Arckaringa Coal Project ("Arckaringa") comprises the 100% interest in threeexploration licences in South Australia, which have previously been calculatedas a JORC compliant resource of over 7 billion tonnes of sub bituminous Permiancoal, amenable to open pit mining, and suitable as fuel for power generation andpotential application of coal to oil technology. The three explorationlicences, EL3360, EL3361, and EL3362 ("the Licences"), cover a combined area ofapproximately 2,500 square kilometres in the northern portion of the PermianArckaringa Basin in South Australia. The Licences include three coal deposits,known as the Westfield Deposit (EL3360), the Wintinna Deposit (EL3361), and theMurloocoppie Deposit (EL3362), are located in close proximity to the Adelaide toDarwin railroad, facilitating improved economic potential for despatch of coalto coastal based industries and export ports. The railroad will also facilitatemine development and operations. Coal to Oil Technology: The technology required to convert coal to oil has been available for over 80years, having been invented by German chemists Franz Fischer and Hans Tropsch in1923. The Fischer-Tropsch ("FT") Synthesis was used during WWII to produce600,000 barrels (bbl) per year from coal and coke. The technology has been further developed in the intervening years, primarily bySASOL in South Africa and worldwide current production stands at just under200,000 bbl/day. Since the 1950s, SASOL has produced 160,000 bbl/day from coal;SASOL technology has been used by Petro SA since 1993 to produce 23,000 bbl/dayfrom natural gas; and in Malaysia Shell has produced 15,000 bbl/day since 1995. Advantages Coal to oil represents a significant opportunity for global energy supplies asdemand for traditionally sourced petroleum continues to outstrip current andprojected supply: • Ultra-clean FT diesel fuel provides significant environmental benefits with, typically, 0% sulphur emissions (USA regulations from 2006 will require an emission rate of