Altona Energy Regulatory News (ANR)

4 Mar 2008 07:02

Altona Resources PLC04 March 2008 Altona Resources Plc / Index: AIM / Epic: ANR / Sector: Exploration & Production 4th March 2008 Altona Resources Plc ("Altona" or "the Company") Completion of Field Technical Programme And Progressing Coal-to-Liquids Feasibility Study Altona Resources Plc, the Australian based energy company, is pleased toannounce the completion of the key technical field components of thepre-feasibility study for the development of an integrated Coal-To-Liquids ("CTL") plant and Co-generation power facility, at its Arckaringa Project ("Arckaringa") in South Australia. The drilling campaign focused on the Wintinna Coal Deposit and was completed onschedule on 11th February, 2008. Sufficient total drilling meterage and samplingwas achieved from 20 boreholes to meet the programme's key objectives, includingthe definition of approximately 700 million tonnes of coal that can beclassified as Measured or Indicated according to the current JORC Code forreporting resources. The Company anticipates that it will take two months to evaluate and report onthe results of the field programme and bring the pre feasibility stage to aclose. A positive outcome will enable Altona to proceed confidently to the finalfeasibility stage of its Bankable Feasibility Study ("BFS"). The following core strengths have been confirmed during pre-feasibility atArckaringa: • Proven coal resources • Conventional open cut coal mining possible for the Wintinna deposit • Coal resources of a quality suitable for CTL technology • Expandable plant design • Excellent infrastructure with immediate access to existing railway and ports • Strong demand for electricity in South Australia due to State deficit • Existing export and domestic markets for diesel and jet fuels • Strong Government support in a politically stable country • Environmental issues identified • Competitive project economics A decision to move to final feasibility is likely to elevate Arckaringa to "Major Project" status in South Australia, under which the State Governmentwould establish a process to streamline evaluation and approvals. Based onadvice from key advisers, including Jacobs Consultancy and Hatch Engineering,the Company anticipates that the final feasibility and Government approvalsstage will take approximately 24 months. The construction of two modulescomprising the "base case" 10 million barrel per year CTL Plant and associatedpower facility could come on stream over a period of between 36 and 54 months. Presenting at the AJM 3rd Annual Coal-To-Liquids/Gas-To-Liquids Conference inBrisbane on 27 February, Altona's Managing Director Chris Schrape highlightedthe steady progress demonstrated over the past 12 months, and set out theproposed schedule for the final feasibility stage, including Governmentapprovals, and for the construction of Arckaringa. The Minister for Resourcesand Energy, Hon. Martin Ferguson stated at the conference, "Energy security isabsolutely critical to Australia's economic prosperity and I believecoal-to-liquids and gas-to-liquids will play a major role in Australia's energyfuture." As part of Altona's continued drive in targeting Australasian markets, MrSchrape will also be presenting at the 5th Annual CTLtec Conference in Beijingon 4 March. Chris Schrape said, "Following an intense and productive period for Altona I ampleased to wrap up the drilling campaign at Arckaringa, and with the completionof the pre feasibility study in sight, look forward to progressing to the finalstage of the BFS. All the positive factors favouring development at Arckaringacontinue to be confirmed by our studies and it is shaping up as a highlyexciting project. The Arckaringa coal basin contains an estimated 7.8 billiontonnes of coal. The CTL process is ideal for the resource, and the demandeconomics from local and international markets will underpin the potential ofthe project. "The next period of activity for the Company will be even busier, as we focus onplanning and managing the final feasibility work and targeting both theAustralian and Asian markets for the project's future production of high valueliquid fuels. We believe that the Asian market in particular could be vital forAltona and we are keen to cement relationships, such as our recently announceddeal with Hong Kong investment house Tongjiang International Energy, to buildstrategic business opportunities moving forward. In that regard, I look forwardto presenting in Beijing and telling the Chinese market more about the fullpotential of the Arckaringa Project. Technical Information A bulk sample of approximately five tonnes of coal has been sampled from fivelarge diameter (200mm) partially cored boreholes since drilling operationscommenced on 5th May, 2007. Groundwater production wells and monitoringpiezometers were constructed for a comprehensive assessment of thehydrogeological characteristics of the deposit and four cored geotechnicalboreholes were completed to better define the geotechnical parameters of thedifferent lithological units proposed to be mined at the deposit. Tengeophysically logged slim diameter (HQ-61mm) partially cored boreholes and twogeophysically logged open holes were drilled to reduce the borehole spacingwithin the area of interest to between 500 metres and 1 kilometre for resourcedefinition purposes. Each of the completed boreholes was successfully geophysically logged. All coalseams have been sampled and dispatched to the ACIRL laboratories for testing andanalysis. The programme focused on the optimum area within the Wintinna depositfor extraction by open-cut mining methods. A copy of the Mr. Schrape's presentation to the Brisbane Conference is availableon the Company's website www.altonaresources.com The information contained in this announcement has been reviewed by NormanKennedy, the Technical Director of the Company. Mr Kennedy holds a Bachelor ofScience from the University of NSW, and is a Member of the Australian Instituteof Mining and Metallurgy ***ENDS*** For further information visit www.altonaresources.com or please contact: Christopher Lambert Chairman +44 (0) 20 7024 8391Christopher Schrape Managing Director +61 (0) 417 984 434Hugh Oram Nabarro Wells & Co Limited +44 (0) 20 7710 7400Alastair Stratton Matrix Corporate Capital LLP +44 (0) 20 7925 3300Victoria Thomas St Brides Media & Finance +44 (0) 20 7236 1177Hugo de Salis St Brides Media & Finance Ltd +44 (0) 20 7236 1177 Notes to Editors: About Altona Altona Resources Plc is an Australian based energy Company that listed on theAIM market of London Stock Exchange in March 2005. Altona's primary focus isthe completion of a bankable feasibility study for its wholly owned ArckaringaProject 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 PtyLtd, a 100% interest in three exploration licences covering 2,500 sq. km in thenorthern portion of the Permian Arckaringa Basin in South Australia. Theseinclude three coal deposits, Westfield (EL3360), Wintinna (EL3361) andMurloocoppie (EL3362). All three lie close to the Adelaide to Darwin railwayand the Stuart Highway. Containing more than 7.5 billion tonnes of coal (basedon previous JORC equivalent standards of the time) these coal deposits areeffectively one of the world's largest undeveloped energy banks, capable ofconversion into clean liquid fuels, low cost power and high value industrialfeedstocks. About Coal-to-Liquids (also see www.altonaresources.com) CTL is a proven technology which converts coal into more environmentally cleanand manageable energy sources including gas and synthetic fuels. The processinvolves two major stages, gasification to produce synthetic gas ("Syngas") richin hydrogen and carbon, and a liquefication stage where the Syngas is reactedover a catalyst to produce high quality, ultraclean synthetic fuels and chemicalfeedstocks. CTL is a prime example of clean coal technology - the associated combined cycleunits produce negligible sulphur oxides, significantly less nitrogen oxides and10 - 20% less CO2 per unit of power generated than a conventional coal firedplant, whilst carbon capture and storage offers the potential to reduce theoverall greenhouse gas emissions from CTL to below the "well to wheel" level offuels derived from crude oil. The technology is best demonstrated in South Africa, where currently 30% of thecountry's gasoline and diesel fuel needs are met through CTL plants. This information is provided by RNS The company news service from the London Stock Exchange