Altona Energy Regulatory News (ANR)

22 Oct 2007 07:01

Altona Resources PLC22 October 2007 Altona Resources Plc / Index: AIM / Epic: ANR / Sector: Exploration & Production 22 October 2007 Altona Resources Plc ("Altona" or "the Company") Greenhouse Gas Management Initiative Altona Resources Plc, the Australian based energy company, announces that inconjunction with its ongoing feasibility studies into a Coal to Liquid ("CTL")and cogeneration Power Project in South Australia, the Company has commenced aGreenhouse Gas Management and Mitigation initiative. The initiative, which isin line with the South Australian Government's 'Greenhouse Strategy', will buildon the Company's current work programme to define at least 700 million tonnesof coal according to the current JORC Code for reporting coal resources, atAltona's wholly owned Arckaringa Project. The Company has identified a deep geological structure potentially suitable forthe permanent storage ("geo-sequestration") of the CO2 which is captured duringthe CTL process. CTL is a prime example of 'clean coal technology', as throughthe geo-sequestration mechanism, the CO2 generated during the coal gasificationstage can be separated, captured and stored, which therefore substantiallyreduces emissions. This initiative is in line with the South Australian Government's GreenhouseStrategy, particularly via the introduction of Gas Storage Licences ("GSL"),which is covered under amendments to the State's Petroleum Act due to be enactedin 2008. According to public statements by the Petroleum and Geothermal Group,within the Department of Primary Industry and Resources ("PIRSA"), the aim ofGSL's is "to facilitate the competitive and compatible investment in sales gasstorage and greenhouse gas sequestration". In consultation with the Petroleum and Geothermal Group within PIRSA and inanticipation of the new legislation, the Company has formulated a GSL proposaland application to allow further investigation into the selectedgeo-sequestration site. Altona Chairman Chris Lambert commented, "We identified early on in theProject's pre-feasibility stage that a CO2 mitigation plan would be critical toproject approval. Accordingly we actively sought to identify potential sites andto take positive and innovative steps to put this plan into effect. Altona iscommitted to the continued development of the Arckaringa Project and itspotential to assist in the reduction of the forecasted power and fuels deficitsin South Australia and we are proud to be working closely with the Government ona pioneering geo-sequestration project showing commitment to emissionsreduction." **ENDS** For further information visit www.altonaresources.com or please contact: Christopher Lambert Chairman +44 (0) 798 0017 108Christopher Schrape Managing Director +61 (0) 417 984 434Hugh Oram Nabarro Wells & Co Limited +44 (0) 207 710 740Alastair Stratton Matrix Corporate Capital LLP +44 (0) 207 925 3300Hugo de Salis St Brides Media & Finance +44 (0) 207 242 4477 Notes to Editors: 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. kms 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 railroadand 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