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
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
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
· 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.
· Development of Project Infrastructure and Products Transport Plans.
· Development of a Project Execution Strategy.
· Development of product offtake agreements for synfuels and electrical
· 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
Old Park Lane Capital Plc +44 (0) 20 7493 8188
Tavistock Communications +44 (0) 20 7920 3150
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.
This information is provided by RNS
The company news service from the London Stock Exchange
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