Altona Energy Plc Interim Results

Altona Energy Plc, the AIM-quoted energy company, today announces its results for the six month period ended 31 December 2011. 

Highlights

• Chinese coal evaluation reports confirm the quality and extent of coal deposits which underpin Arckaringa CTL and power project.
• Preparations for the commencement of the drilling programme, which is the key component of the 2012 work programme under the BFS, are well advanced.
• Appointment of Michael Zheng as Deputy Chairman of the Board.
• Financial loss for the Group of £795,000 (2010: £909,000). 

Post Period highlights

• Conditional agreement to acquire a 95% beneficial interest in two advanced coal exploration licences located in the People’s Republic of China.
• Completion of equity placings totaling £2m gross.

Chairman’s Statement
Commenting today Chris Lambert, Chairman, of Altona Energy said: “This period marked an important stage in the progression of the BFS at our flagship Arckaringa project. Our joint venture partner, CNOOC-NEIA, has completed a major milestone in Stage 1 of the Bankable Feasibility Study (“BFS”) work programme with the validation of the coal resource and coal quality, thus confirming the enormous potential of the project.  With the ongoing support of the South Australian government, significant key approvals have also been accomplished and we look forward to announcing further progress and development milestones on the BFS once they are complete.

Furthermore, the conditional acquisition of two advanced coal exploration licences in the People’s Republic of China (“PRC”) announced in February is a company changing opportunity. We will be releasing further news once we have finished our due diligence but we believe that, once completed and subject to the conversion of the exploration licences into mining licences, the acquisition will target the start of coal production by the end of 2012.  The addition of revenue generating assets and the associated cash flows is aimed at securing Altona’s future, with the particular benefits of reducing future dilution to our shareholders and strengthening the Company’s ability to develop its Arckaringa project.”

Outlook
Altona Energy is entering a very exciting period and, together with the continuing development of the Arckaringa project, our provisional acquisition in China represents a very real opportunity to secure the future of the Company.  I look forward to being able to further update shareholders in the near future on progress with regard to the BFS on Arckaringa as well as providing information on the progress of our acquisition in China.