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DJ Altona Energy Plc Negotiation for New Petroleum Exploration Licence

 
TIDMANR 
 
21 November 2019 
 
                               Altona Energy plc 
 
                          ("Altona" or the "Company") 
 
               Negotiation for New Petroleum Exploration Licence 
 
                              and Business Update 
 
Petroleum Exploration Licence Application 
 
Altona Energy (NEX: ANR.PL), a resources company, announces that it has entered 
into early stage negotiations with a third party to acquire a Petroleum 
Exploration Licence Application ("PELA") on a large tenement within a 
well-known coal bearing basin, the Arckaringa Basin located in South Australia. 
The tenement is in close proximity to the major national road and rail 
transport corridor and also close to the Company's historic Minerals 
Exploration Licences within the Arckaringa Basin. 
 
The Company has commissioned a preliminary report from mining consultant WSP 
Australia (WSP") which states the tenement is sufficiently prospective to 
warrant further investigations in respect to developing a commercially viable 
in-situ gasification ("ISG") project. WSP has also indicated that such a 
project could form part of a commercially viable and much broader development 
by the Company, in the form of an 'Energy Precinct'. 
 
In addition to the chemical and other by-products possible from the ISG 
process, the Energy Precinct would be designed to produce energy from a variety 
of sources, including syngas from ISG, as well as a co-located wind and / or 
solar energy field. South Australia has an energy deficit and there are a 
number of remote mining operations that would very likely welcome locally 
produced power at a competitive rate. 
 
The Company will report to shareholders in due course on the outcome of these 
negotiations, together with an initial cost plan and timeline to establish the 
presence of coal in at least two areas of the tenement at depths suitable for 
ISG. 
 
Business Update 
 
The Company announced on 6 June 2019 that it had entered into a Memorandum of 
Understanding with a Chinese vanadium company which the Company was 
investigating ahead of a potential investment. It can now report that the board 
has decided against making an investment into this company at the present time, 
due to a number of key market and economic factors. 
 
Furthermore, in respect of the company's existing Australian activities, the 
board has agreed to withdraw its applications for the renewal of the three 
Exploration Licences (EL5676, 5677 and 5678) in the Arckaringa Basin. As 
shareholders are aware, the Company does not own the PELA which lies over these 
tenements and believes that it will not have the opportunity to acquire it in 
the foreseeable future. And, as the Company remains focused on ISG for the 
extraction of coal, rather than more traditional coal mining methods, the cost 
of carrying these tenements is both administratively and economically redundant 
to the current strategy of Altona. 
 
Finally, at a board meeting held on 19 November, Mr Ma Chi, the representative 
of the Company's joint venture partner Sino-Aus Energy Group Ltd ("Sino-Aus") 
and a non-Executive Director of the Company, announced that Sino-Aus was no 
longer interested in an investment in ISG. Therefore, the Company has dissolved 
its joint venture agreement of 5 November 2015 with Sino-Aus and Mr Ma has 
resigned from the board with immediate effect. 
 
Philip Sutherland, Altona's Australian Non-Executive Director, commented, "Over 
the past 10 months, we have been working diligently to find an alternative 
source of revenue for the Company and this exciting opportunity to acquire a 
PELA could represent a major step for the future of Altona. 
 
"The frustration for shareholders since 2015, has been the knowledge that 
Altona has had the financial backing from its joint venture partners and also 
vast amounts of mining data collected over many years of exploration on our 
tenements, but we did not own the correct licence to allow us to prosecute an 
in-situ gasification project. Early indications are that this new and very 
exciting opportunity could allow us to achieve what we set out to do five years 
ago." 
 
                                    -ends- 
 
For further information, please visit www.altonaenergy.com or contact: 
 
Altona Energy plc 
Qinfu Zhang, Executive Director                     +44 (0) 7795 168 157 
Philip Sutherland, Non-Executive Director            +61 (0)402 440 339 
 
Alfred Henry Corporate Finance Ltd (NEX 
Corporate Adviser) 
Jon Isaacs / Nick Michaels                          +44 (0) 20 3772 0021 
 
Leander (Financial PR) 
Christian Taylor- Wilkinson                         +44 (0) 7795 168 157 
 
 
 
Company Information 
 
Altona is an exploration company focused on the evaluation, development and 
extraction of coal assets in South Australia though the process of in-situ 
gasification. 
 
The Company was admitted to trading on AIM on 10 March 2005 and was 
subsequently admitted to NEX on 1 February 2019.  A copy of its admission 
documents dated 4 March 2005 can be accessed on its website, 
www.altonaenergy.com.  This website is where items can be inspected under Rule 
75 of the NEX Rules for Issuers, from 1 February 2019. 
 
 
 
END 
 

(END) Dow Jones Newswires

November 21, 2019 02:00 ET (07:00 GMT)