TIDMANR
RNS Number : 7553A
Altona Energy PLC
07 February 2011
Altona Energy Plc / Index: AIM / Epic: ANR / Sector: Exploration
& Production
7 February 2011
Altona Energy Plc ('Altona' or 'the Company')
Arckaringa Project BFS Work Programme Update
Altona Energy Plc, the AIM listed Australian based energy
company, is pleased to provide a positive update on progress at the
Arckaringa Coal-to-Liquids ('CTL') Project in South Australia. This
update specifically concerns the Bankable Feasibility Study ('BFS')
and the implementation of a work programme aimed at evaluating the
conversion opportunities for the estimated 7.8 billion tonne
Arckaringa coal resource, of which 1.287 billion tonnes are
currently JORC complaint.
Overview
-- Appointment of General Prospecting Institute of the China
National Administration for Coal Geology ('CNACG') to advance
technical studies as part of BFS work programme for the Arckaringa
Project - studies well underway and on schedule
-- Recent site visit attended by all parties including Altona,
CNOOC-NEIA and CNACG
-- Checking and confirmation of data parameters completed for
the existing geological database and the physical conditions
governing the location of the Wintinna Coal Mine and supporting
infrastructure
-- Preparing documentation to gain an Exploration Work Approval
and to select local drilling and hydro-geological companies for
field programmes
-- Aiming to design field drilling programmes to provide the
detailed information needed for mine design and the groundwater
management programme by April 2011
Altona's Managing Director, Chris Schrape, said, "It was
exciting to join with our JV partner and technical consultants on
the ground in South Australia as we collaborate in taking
significant steps in advancing our BFS work programme. The work now
in progress will build a solid platform for the detailed evaluation
of the mining aspects at Arckaringa and is consistent with the
structured approach required for a BFS on a large scale clean coal
conversion project with a base case capacity of 15 mtpa."
CNACG has been appointed to advance technical studies as part of
the BFS work programme for the Arckaringa Project. CNACG commenced
work in the fourth quarter of 2010 under a contract approved by
Altona and its Joint Venture partner CNOOC-NEIA, the Australian
subsidiary of CNOOC, one of China's major oil companies.
Consequently, the first three of the [previously announced] studies
listed below are well underway:
-- Detailed review of coal deposit geology and consideration of
supplemental drilling;
-- Groundwater investigation and verification;
-- Groundwater management research and design;
-- Environmental baseline studies;
-- Open cut coal mining methodology options; and
-- Product market research.
A technical team from CNACG visited South Australia from 19-27
January 2011. During this time they held a series of technical data
review sessions with the JV Operating Team and met local
hydrogeological and other consultants, including those employed
during the Altona Pre Feasibility Study ('PFS') work. The team also
visited the site and confirmed the parameters for the existing
geological database and the physical conditions governing the
location of the Wintinna mine and supporting infrastructure,
including the transport corridor options to link into the nearby
national rail and road network.
To date, CNACG has reviewed and consolidated all original
technical data concerning the Wintinna deposit, including Altona's
PFS work and historical data. CNACG is now focussed on a Geological
Report on licence EL4512 to assist the development of the long term
plan for the Wintinna Coal Mine, which it aims to complete during
March 2011. It also aims to complete comprehensive geological and
hydro-geological research reports to underpin the design of the
field drilling programmes that will provide the detailed
information needed for mine design and the groundwater management
programme by April 2011.
In anticipation of the completion of the CNACG reports, the JV
partners are preparing documentation to gain the required
Exploration Work Approval ('EWA') from the South Australian
Government and to select the local drilling and hydro-geological
companies for the field programmes, which are scheduled to commence
in mid 2011. Further details on the field programmes, including
their scope and duration, will be announced when the EWA is in
place.
**ENDS**
Christopher Lambert Altona Chairman Tel: +44 (0) 20 7024
8391
Christopher Schrape Altona Managing Director Tel: +44 (0) 20 7024
8391
Simon Edwards Evolution Securities Tel: +44 (0) 20 7071
Ltd 4300
Tim Redfern Evolution Securities Tel: +44 (0) 20 7071
Ltd 4300
Elisabeth Cowell St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
Hugo de Salis St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
Notes
Altona Energy Plc is an AIM listed Australian based energy
company. Its asset is an estimated 7.8 billion tonne coal resource
(non-JORC) in the Arckaringa Basin of South Australia
(JORC-compliant: 1.287 billion tonnes). This is considered by the
Board to be one of the world's largest untapped energy banks. Per
Jacobs Engineering's study for the Company, assuming a 50%
conversion of CTL fuels and 50% to synthetic gas ('Syngas'),
Arckaringa total coal resources (both JORC and non-JORC) would
represent respectively 28% and 29% of current North Sea remaining
proven reserves of 10,900mb of oil and 114,800 bcf of natural
gas.
Altona has already accomplished a number of key phases in its
development:
-- The Company has agreed the terms of a joint venture agreement
with CNOOC-NEI, a subsidiary of Chinese oil major China National
Offshore Oil Corporation, to accelerate the Arckaringa Project
towards commercialisation.
-- Under the terms of the agreement, CNOOC-NEI will fund the
bankable feasibility study ('BFS') for a coal mine and an
integrated value-added project.
-- The current base case is a 10mb per year CTL plant and 560MW
co-generation power facility.
-- CNOOC-NEI will also act as the operator and take
responsibility for assessing the full potential of the coal
resource, in return for a 51% interest in the exploration
licences.
-- It is envisaged that numerous new additional projects may
also be opened up to create a multi-project, multi-national
business.
CTL
The quality of the Company's coal is suitable for conversion to
synthetic gas ('Syngas'), using existing commercial CTL
technologies. The process involves two major stages;
1. gasification to produce Syngas rich in hydrogen and
carbon,
2. 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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