3 Aug 2009 07:00
Altona Energy Plc / Index: AIM / Epic: ANR / Sector: Exploration & Production
3rd August 2009
Altona Energy Plc ('Altona Energy' or 'the Company')
Financing Update
Establishment of Beijing Office
Altona Energy Plc, the AIM listed Australian based energy company, announces that further to the Joint Venture Terms Sheet announcement of 26 June 2009 and the funding path outlined therein for the Arckaringa bankable feasibility study ('BFS'), the Company and its Hong Kong based strategic investor, Tongjiang International Energy Co. Ltd ('Tongjiang'), have mutually agreed to cancel the third and final £8,002,500 tranche (165,000,000 shares) of the £11,618,000 share subscription agreement announced in February 2008.
The share subscription agreement with Tongjiang was originally planned to provide a substantial part of the funds required to complete the final stage of the BFS for the Arckaringa Project. In view of the Company's BFS funding path announced on 26 June 2009, whereby the BFS would be funded by the joint venture partner, the third tranche placing with Tongjiang has been superseded. A further announcement in relation to the proposed joint venture will be made in due course.
Tranche 1 and 2 of Tongjiang's subscription agreement amounted in aggregate to £3,615,500 and were completed in February and May 2008 respectively. Tongjiang currently is interested in approximately 21.4% of the Company's ordinary share capital.
As part of Altona's development of long term relationships in China, the Company will be establishing an office in Beijing to be headed by Altona Director, Mr. Zheng (Michael) Qiang, who is also Chief Executive Officer of Tongjiang.
Altona Chairman Chris Lambert said, "The relationship with Tongjiang has been a great success, both in providing funding to the Company and in building significant relationships in China. We look forward to Tongjiang's continued invaluable future support."
**ENDS**
For further information visit www.altonaenergy.com or please contact:
| Christopher Lambert | Altona Chairman | Tel: +44 (0) 207 024 8391 |
| Christopher Schrape | Altona Managing Director | Tel: +44 (0) 207 024 8391 |
| Samantha Harrison | Ambrian Partners Limited | Tel: +44 (0) 207 634 4705 |
| Chris Welsh | St Brides Media & Finance Ltd | Tel: +44 (0) 207 236 1177 |
| Hugo de Salis | St Brides Media & Finance Ltd | Tel: +44 (0) 207 236 1177 |
Notes to Editors:
About Altona
Altona Energy Plc is an Australian based energy company that was admitted to trading on AIM in March 2005. It's primary focus to date has been 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 non-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.altonaenergy.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.