ANR Altona

 

TIDMANR 
 
RNS Number : 6825X 
Altona Energy PLC 
09 December 2010 
 

  Altona Energy Plc / Index: AIM / Epic: ANR / Sector: Exploration & Production 
9 December 2010 
                  Altona Energy Plc ('Altona' or 'the Company') 
                            Chairman's AGM Statement 
 
Altona Energy Plc, the AIM listed Australian based energy company, is holding 
its Annual General Meeting ('AGM') today at 3:30 p.m.  At the meeting, Chairman 
Chris Lambert, will make the following statement: 
 
"During 2010 we have made extensive progress in the development of the 
Arckaringa Project ('the Project'), which we believe is one of the world's 
largest undeveloped energy banks, with an estimated 7.8 billion tonne coal 
deposit in the Arckaringa Basin of South Australia, and we are now in a strong 
position to realise its full potential with the acceleration of the work 
programme during 2011.  With funding secured for the Bankable Feasibility Study 
('BFS'), political backing in Australia and China and a highly experienced 
technological team in place, the foundations are now laid for us and our 51 per 
cent. Joint Venture partners CNOOC New Energy International (Australia) Pty Ltd 
('CNOOC-NEIA'), a subsidiary of one of China's largest national oil companies, 
to implement our development plan and crystallise the inherent value of the 
Project.  With this in mind we believe that 2011 has the potential to be a great 
year for Altona due to the identification of multiple value trigger points that 
will be achieved over the course of the next 12 months. 
 
"The major drive now, consistent with the FIRB approval, is the completion of 
the BFS for a coal mine and an integrated value-added project.  The current BFS 
base case is a 10 million tonne per annum coal mine supporting a 10 million 
barrel per year Coal to Liquid ('CTL') plant and 560MW co-generation power 
facility.  Given the scale of the coal resource, the JV intends to initially 
evaluate a mine development up to 15 million tonne per annum and associated coal 
processing options.  CNOOC-NEIA is initially acting as manager and operator of 
the Project, taking responsibility for assessing the full potential of the coal 
resource and funding the full cost of the BFS.  The Joint Venture Committee has 
approved the annual budget of AU$40 million (circa GBP24 million).  The first 
stage, which has now commenced and is anticipated to last 12 months, has a 
budget of AU$12 million, after which the second stage will begin.  Our position 
has evolved and we have now moved from a conceptual and planning phase into the 
exciting detailed evaluation and execution phase. 
 
"The first phase will cover multiple key value-enhancing activities.  These 
include the review of the coal geology and resources/reserves; the delineation 
and allocation of the coal reserves for the long term mine plan; mine design and 
planning; groundwater management and engineering and environmental baseline 
studies; reviewing and selecting surface coal mining methodology options; and 
product market research to review domestic and export market options for coal 
and processed products, including liquid fuels, chemical feedstocks and power. 
All of the above will underpin the follow-up engineering of the coal conversion 
plant and significantly de-risk the Project further.  With the work programme 
underway, we will be able to regularly provide investors with a clear idea of 
the value triggers in the Project and its huge potential." 
 
"Importantly, the Joint Venture will not only focus on the BFS but will also 
assess the multiple project potential of the Arckaringa coal deposit, including 
coal development, CTL, synthetic natural gas, power co-generation and other 
potential clean energy projects.  We envisage that the JV will also enable the 
targeting of CTL exports to China and other Asian markets. 
 
"The original rationale behind the Arckaringa Project remains that the quality 
of our coal is suitable for conversion to syngas, using existing tried and 
tested commercial technologies.  We believe the products from Arckaringa will be 
highly marketable given growing worldwide energy demand - in particular they 
would help to fill the projected energy shortfall faced by South Australia, 
which already has to import all its diesel fuel needs and is forecast to require 
an additional 1,000MW of base load power over the next 10 years.  In our view, 
recent announcements, including Sasol's news that it has flown the first 
passenger aircraft using its own-developed synthetic jet fuel, and an agreement 
between the Solena Group Inc., and U.S. based Rentech, Inc. ('Rentech'), 
establishing Europe's first commercial scale sustainable jet fuel facility in 
the UK utilising synthetic fuel technology, clearly demonstrates the increasing 
demand dynamics for the production of syngas and associated products and 
therefore underpins the significant and rising potential of the Arckaringa 
Project. 
 
"We understand the technical requirements to develop Arckaringa.  We have a 
fantastic technical team, greatly reinforced by the appointment of Peter Fagiano 
as Director of Project Technology, which will work in tandem with CNOOC-NEI, 
whose industry knowledge and extensive in-house expertise provide the key to the 
successful development of the Project. 
 
"I am very excited about our prospects and as you will recognise, the 
opportunity for us is huge.  The foundations are now in place and I look forward 
to the rapid development of Altona and a bright future." 
 
In addition, a presentation was delivered at the AGM, a copy of which will 
shortly be available on the Company's website www.altonaenergy.com. 
 
                                    **ENDS** 
 
For further information visit www.altonaenergy.com or please contact: 
+----------------+-----------------------+----------------------+ 
| Christopher    | Altona Chairman       | Tel: +44 (0) 20 7024 | 
| Lambert        |                       | 8391                 | 
+----------------+-----------------------+----------------------+ 
| Christopher    | Altona Managing       | Tel: +44 (0) 20 7024 | 
| Schrape        | Director              | 8391                 | 
+----------------+-----------------------+----------------------+ 
| Simon Edwards  | Evolution Securities  | Tel: +44 (0) 20 7071 | 
|                | Ltd                   | 4300                 | 
+----------------+-----------------------+----------------------+ 
| Tim Redfern    | Evolution Securities  | Tel: +44 (0) 20 7071 | 
|                | Ltd                   | 4300                 | 
+----------------+-----------------------+----------------------+ 
| Hugo de Salis  | St Brides Media &     | Tel: +44 (0) 20 7236 | 
|                | Finance Ltd           | 1177                 | 
+----------------+-----------------------+----------------------+ 
| Elisabeth      | St Brides Media &     | Tel: +44 (0) 20 7236 | 
| Cowell         | Finance Ltd           | 1177                 | 
+----------------+-----------------------+----------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 AGMTLBJTMBAMBIM 
 

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