Altona Energy PLC Company Update (6381R)
September 25 2017 - 2:01AM
UK Regulatory
TIDMANR
RNS Number : 6381R
Altona Energy PLC
25 September 2017
25 September 2017
Altona Energy Plc
("Altona" or "the Company")
Company Update
The Board of Altona (AIM: ANR) provides an update to
shareholders regarding the result of the report produced by WSP
Australia Pty Ltd ("WSP") (formerly known as Parson Brinckerhoff
(Australia). The Company also provides details of a claim by a
former director.
The Company requested WSP to undertake a fresh investigation
into unlocking conventional mining as an alternate to the previous
UCG work undertaken in 2016, with the aim of developing an
energy/power generation precinct in the Arckaringa Basin (with the
capacity to produce other commercial products). This new strategic
direction is in response to the acute energy deficit in Australia
and the commercial opportunities arising from this. The Company was
also cognisant of the fact that a conventional coal mining
operation linked to a coal (conversion) to gas plant - with the gas
fuelling turbines producing electricity - could be brought into
operation/production much quicker than a UCG development.
The report focused on a desktop investigation of the Company's
previous work to determine whether there is a possibility of dry
coal deposits in any of the three Exploration Licences (ELs)
(Wintinna, Murlocoppie and Westfield) under the control of Altona.
Mining dry coal is preferable as the costs associated with
dewatering are not necessary and there are fewer environmental
considerations. Much of the earlier work was centred on a "world
scale" coal mine requiring substantial dewatering.
The WSP report concluded that there was not sufficient
information to rule out the presence of dry coal in the Wintinna,
Murlocoppie and Westfield coalfields. Although much of the area
covered by the three coal fields is below the water table, there is
some evidence that there are areas that are 'less wet', with
Westfield the most likely to have dry coals; it being disconnected
from the major water system.
The report concluded with a recommendation to proceed with a
more detailed and accurate data analysis and mapping of the ELs
using the seismic and water table data to focus in on the Westfield
coalfield and areas disconnected from the main water system and to
develop information for a potential seismic programme.
WSP have engaged the services of Runge Pincock Minarco Global
("RPM") who are a specialist professional mining consultant with
previous history with the Arckaringa ELs. This consulting firm is
an expert in coal and familiar with the Arckaringa Basin. The
Company's tenement at Westfield, which is located at the edge of
the Great Artesian Basin, will be the focus of this next round of
work. The cost of this new phase of testing will be up to AUS$
25,000 and take up to two weeks to complete.
Sino-Aus Energy Group Ltd ("Sino-Aus") remains supportive of the
project. Once the new report has been completed and if it is
conclusive, Sino-Aus and Altona will meet with WSP and RPM in
Australia to discuss and agree upon the next phase of the
project.
Claim from former Director
The Board of Altona has been informed that a default judgment
has been entered against the Company for GBP238,680.68 in respect
of a claim by a former director, who has alleged entitlement to a
termination payment under a settlement agreement. The Company is
making an application to the court to set aside the default
judgment on the grounds that it believes that it has a real
prospect of successfully defending the claim.
The Company is considering various financing options to increase
its working capital as a prudent measure having regard to the
existing default judgment and additional test work mentioned
above.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
-ends-
For further information, please visit www.altonaenergy.com or
contact:
Altona Energy plc
Qinfu Zhang, Executive Chairman +44 (0)7555 679 245
Leander (Financial PR)
Christian Taylor- Wilkinson +44 (0)7795 168 157
Northland Capital Partners Ltd (Nomad and
Broker)
Matthew Johnson / Gerry Beaney (Corporate
Finance)
John Howes (Corporate Broking) +44 (0)20 3861 6625
About Altona
Altona is listed on the London Stock Exchange's AIM market. Its
principal focus is on the evaluation and development of the
Company's flagship Arckaringa Project to exploit the significant
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 produce syngas
products for the Australian market and export from a resource
exceeding 7.8 billion tonnes of coal (1.3 billion tonnes JORC
compliant).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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