Altona Energy Plc, the AIM listed Australian based energy company, is pleased to announce an update on the Arckaringa Unincorporated Evaluation Joint Venture (‘the JV’) with CNOOC NEIA, a subsidiary of CNOOC, one of China’s major oil companies. The Company has successfully completed the extension and transfer of interests in the Exploration Licences (‘EL’s) central to the JV and can confirm that the appointment of the Study Engineer selected by Altona is currently pending the completion of CNOOC-NEI approval processes.
The South Australian Minister for Resources Development’s consent for both the new term of the EL’s and for the terms of the JV Agreement, together with the recent successful FIRB assessment, concludes the actions necessary to satisfy the Condition Precedent regarding Australian Federal and State Government approvals for the JV Agreement to become effective.
Altona’s Managing Director Chris Schrape commented that, “The granting of the new exploration licences and consent for the transfer of a 51% interest to our JV partner in the Arckaringa Project, in return for their full funding of the BFS, provides security to the JV and underpins its work on the project. Most recently, leaders from the Chinese and Australian Governments, alongside the President of CNOOC itself, joined us at the ceremonial signing of the JV, again demonstrating the level of support for this project and its potential to alleviate South Australia’s forecasted energy shortfalls.”
Extension and Transfer of Exploration Licences
The Company has completed the necessary steps to extend the term of its Exploration Licences and to effect the transfer of interest in the EL’s, as required under the Arckaringa Unincorporated Evaluation Joint Venture (‘JV Agreement’) with CNOOC NEIA.
Combined, the EL’s contain an estimated 7.8 billion tonne coal resource (non JORC), of which 1.287 billion tonnes is JORC compliant, and in the opinion of Altona’s Board, represent one of the world’s largest undeveloped energy banks, capable of conversion into high value products such as diesel fuels, power and industrial feed-stocks.
The term of the original EL’s held by Arckaringa Energy, Altona’s wholly owned subsidiary, expired as scheduled on 5 June 2010. Based on the facts that all previous expenditure and reporting commitments have been met by the Company and that firm development plans are in place for the future, the SA Government through PIRSA have granted ‘Subsequent Exploration Licences’. These subsequent EL’s have new numbers, but otherwise cover exactly the same areas in the Arckaringa Basin of South Australia. The minimum annual expenditure commitments are, as per normal policy for the grant of subsequent EL’s, double those of the previous EL’s, but the anticipated expenditure under the BFS will more than cover these commitments. Details of the EL’s are as follows:
| EL Area Designation |
Previous EL Number |
Subsequent EL Number |
Area (sq.km) |
Min. Annual Expenditure Commitment (A$) |
| Westfield |
3360 |
4511 |
920 |
240,000 |
| Wintinna |
3361 |
4512 |
868 |
230,000 |
| Murloocoppie |
3362 |
4513 |
804 |
220,000 |
Study Engineer
As required under the JV Agreement, the BFS Study Engineer appointment must be ratified by both JV parties. The appointment of the Study Engineer selected and proposed by Altona, following a rigorous bidding process involving many of the world’s leading project engineering firms, is currently pending the completion of CNOOC-NEI approval processes. During the period leading up to the formal appointment, Altona and CNOOC-NEI have been actively working with the Study Engineer designate on finalising detailed work programmes and budgets to be agreed by the JV parties.
**ENDS**
For further information visit www.altonaenergy.com or please contact:
Enquiries:
Christopher Lambert/ Christopher Schrape Tel: +44 (0) 20 7024 8391
Altona Energy Plc
Simon Edwards/ Tim Redfern Tel: +44 (0) 20 7071 4300
Evolution Securities Ltd
Hugo de Salis Tel: +44 (0) 20 7236 1177
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