Altona Energy soars on Arckaringa approvals

Altona Energy shares have risen 14% in morning trading on news the firm has won approval from the South Australian Government for exploratory work at its Arckaringa project.

Altona also says it has agreed "key elements" of the work programme at Arckaringa with its joint venture partner, CNOOC NEI, which is a subsidiary of the China National Offshore Oil Corporation. CNOOC NEI has a 51% stake in the project.

The Arckaringa basin is a coal deposit in the middle of the state of South Australia, near the town of Coober Pedy.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Altona belies it to be "one of the world's largest untapped energy banks". The current plan for the site envisages an integrated coal mine and a 10 million barrel per year coal-to-liquids plant.

The next phase of the project is to drill more bore holes to establish exactly how far the deposit extends and to take more coal samples to work out the type of coal that will be available.

Chris Lambert, chairman of Altona, commented: "Support for new fuels and power sources from the South Australian Government remains extremely strong and CNOOC-NEI have completed all delineation work required for them to push ahead with the next stage of the bankable feasability study".

At 09:15, shares in the AIM-listed Altona were at 6p. Since January the firm's value has dropped 47%.

BS