31 Mar 2015 09:11
31 March 2015
Altona Energy plc
("Altona" or "the Company")
Joint Venture Update
The Company announces that, following discussions with Wintask Group Limited ("Wintask") and Sino-Aus Energy Group Limited ("Sino-Aus"), its partners in the Arckaringa Coal Chemical Joint Venture Co Pty Ltd ("JV Company"), (together with Altona, the "JV Partners"), a decision has been reached to amend the joint venture agreement announced on 14 November 2014 ("JV Agreement").
The main focus of the changes to the JV Agreement will be to consider a move towards underground coal gasification ("UCG"). The JV Partners now believe this method potentially represents the most economic option for the exploitation of the coal deposit.
The amendments to the JV Agreement are required as the agreement in its current form is based on a bankable feasibility study ("BFS") for coal-to-methanol, coal chemical and synthetic gas production. It is expected a revised business plan will be agreed within a matter of weeks. As a consequence, the quantum and timing of planned payments into the JV Company, and the proposed investment into Altona by Wintask and Sino-Aus under the JV Agreement are being reassessed by the JV Partners. Pending the revised JV Agreement, the AUD$2 million invested by Wintask and Sino-Aus into the JV Company has been returned. No shares have been issued in the JV Company and the Arckaringa exploration licences remain with Altona.
The Company will provide an update to shareholders regarding the revised business plan and subsequent amendments to the JV Agreement in due course.
-ends-
For further information, please visit www.altonaenergy.com or contact:
Altona Energy plc Zhang Qinfu, Executive Chairman
| +44 207 024 8391
| |
Leander (Financial PR) Christian Taylor- Wilkinson
| +44 7795 168 157 | |
Northland Capital Partners Limited (Nominated Adviser and Broker) Gerry Beaney / Matthew Johnson (Corporate Finance) | +44 20 7382 1100 | |
John Howes / Mark Treharne (Corporate Broking)
| ||
About Altona
Altona is listed on the London Stock Exchange's AIM market. Its principal focus is on the evaluation and development of the Company's flagship Arckaringa Project to exploit the significant coal resources contained in three exploration licences covering 2,500 sq. kms in the northern portion of the Permian Arckaringa Basin in South Australia. The Project is designed to produce methanol and other syngas products for the Australian market and export from a resource exceeding 7.8 billion tonnes of coal (1.3 billion tonnes JORC compliant).