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Altona Energy PLC ANR Arckaringa Project - Update

  Altona Energy PLC (ANR) - Arckaringa Project - Update

RNS Number : 2777Q
Altona Energy PLC
05 November 2012




5 November 2012



                          Arckaringa Project Update

                                      

             Selection of Altona's Project Management Contractor



Altona Energy  (AIM:ANR)  is  pleased  to  announce  that  it  has  signed  a 
Memorandum  of  Understanding  with  Parsons  Brinckerhoff's  Global  Mining 
Business group with  the intent to  engage them to  act as Project  Management 
Contractor to oversee  the Arckaringa  Mine development  and the  design-build 
activities for Altona's 30,000 BPD Clean Energy Coal to Liquids Project  in 
South Australia.



Parsons Brinckerhoff  is the  professional services  division of  the  Balfour 
Beatty group with a combined global workforce exceeding 50,000 personnel.



One of the first tasks that  Parsons Brinckerhoff will undertake is to  assist 
Altona in the selection and project  management of the Drilling Contractor  to 
carry out a test drilling program at Arckaringa. The programme is an important
milestone achievement for Altona's flagship Arckaringa project.



On 13 August  2012, Altona announced  that it had  received all the  necessary 
regulatory approvals for the programme from the South Australian  authorities, 
namely the  Department  of  Manufacturing, Innovation,  Trade,  Resources  and 
Energy  (DMITRE)  and  the  Arid  Lands  Natural  Resources  Management  Board 
(SAALRM), and had also received a Work Area Clearance from the relevant Native
Title Claimant Group (AMYAC).



Since that time,  Altona has conducted  preliminary discussions with  Drilling 
Contractors with  the appropriate  expertise to  carry out  the test  drilling 
programme, which will include:



· Completing  hydro-geological  test wells  to  enable refinement  of  the 
existing hydro-geological model; and

· Completing in-fill  coal and coal  geotechnical boreholes to  facilitate 
the open cut mine design.



The Drilling  Contractor  selected  for  this test  programme  will  have  the 
necessary previous experience and equipment  for drilling in the Permian  Coal 
Measures in South Australia. It is anticipated that the drilling program  will 
commence in  late January  2013 and  be completed  by the  end of  the  second 
quarter of 2013.



With the  assistance of  Parsons Brinckerhoff,  the drilling  results will  be 
incorporated  into  the  existing  draft   Mine  Schedule  and  the   existing 
hydro-geological model which will together underpin the Groundwater Management
Plan and Mining and Rehabilitation Plan  for review with the South  Australian 
authorities.



During 2013, Parsons Brinckerhoff's Global Mining Business will assist  Altona 
in managing the following key activities:



· Liaison with the DMITRE and the appropriate South Australian and Federal
authorities.

· Completing the Basis of Design for the Mine and CTL Plant.

· Development  of the  Process  Design Study  for the  Transportation  and 
Storage of the captured CO[2].

· Development of Project Infrastructure and Products Transport Plans.

· Development of a Project Execution Strategy.

· Development of  product offtake agreements  for synfuels and  electrical 
power.

· Updating the Project Costs and Schedule.



Parsons Brinckerhoff will  also assist Altona  in its reporting  to the  Joint 
Venture Management Committee overseeing the Arckaringa project of the progress
made on the above activities.



Chris  Lambert,  Executive   Chairman  of  Altona   Energy,  commented:   "The 
appointment of  Parsons Brinckerhoff  will give  us the  necessary  additional 
expertise and resources to  successfully manage the  completion of this  world 
class project. Also the completion of  the test drilling program will  provide 
us with data  to further update  the mine plan  and hydro-geological model  so 
that we can finalise our overall project execution strategy".



David Cruickshanks-Boyd, Regional Director  for Parsons Brinckerhoff in  South 
Australia added: "Parsons  Brinckerhoff is  pleased to  support this  exciting 
resources and energy  project here  in South  Australia. The  project has  the 
potential to make a major contribution to the growing reputation of this State
as a leading place for investment in this market sector".



For further information, please visit www.altonaenergy.com or contact:



Altona Energy Plc                      +44 (0) 20 7024 8391

Christopher Lambert, Chairman          

Christopher Schrape, Managing Director

Peter Fagiano, Executive Director


WH Ireland Ltd                         +44 (0)20 7220 1666

Adrian Hadden

James Bavister
Old Park Lane Capital Plc              +44 (0) 20 7493 8188

Michael Parnes

Luca Tenuta


Tavistock Communications               +44 (0) 20 7920 3150

Mike Bartlett

Simon Hudson





About Altona Energy

Altona Energy is listed on the London Stock Exchange's AIM market. Its current
focus is  firmly  on the  evaluation  and  development of  the  Company's  49% 
interest in its  flagship coal-to-liquids  Arckaringa Project  to exploit  the 
huge 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 include a modern, combined-cycle  power 
station adding 560Mw to  the national grid and  to produce clean burning  fuel 
for Australia  and  the  world  from a  resource  equivalent  to  7.8  billion 
barrels. Altona  Energy has  forged a  Joint Venture  with CNOOC  New  Energy 
Investment Co.,  Ltd.,  a  subsidiary  of  the  China  National  Offshore  Oil 
Corporation (CNOOC), to  complete the Project  Bankable Feasibility Study  and 
expedite the Project's development.



In addition to its Arckaringa interest,  Altona Energy holds interests in  two 
coal exploration licences in  the Xinjiang Autonomous  Region of the  People's 
Republic of China. These interests are expected to provide early cash flow to
enable the  Company to  progress the  Arckaringa project  and to  continue  to 
investigate additional opportunities to deploy the management team's expertise
in clean energy.



                                    -ends-

                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


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