Altona acquires license to advance Arckaringa project

Executive chairman of Altona Energy, Qinfu Zhang, has confirmed the South Australian government has registered joint venture company Arckaringa Coal Chemical's petroleum exploration licence application over the ground required to advance the Arckaringa project.

The project involves the evaluation and development of the company’s huge coal resources in the Arckaringa Basin of South Australia.

"The South Australian region is currently experiencing an economic downturn and power shortages are a regular occurrence. We therefore continue to believe the Arckaringa Project will be a high priority for the government given its potential to provide a large number of new jobs and a source of long-term energy supply for the state," said Zhang.

The company revised its joint venture agreement with Sino-Aus Energy group and Wintask Limited in November 2015 to complete a bankable feasibility study for underground coal gasification at the Arcaringa project.

Profit before tax was £26,000 for the year ended 30 June 2016 up from a loss of £1.3m in 2015.

Company overheads reduction by 50% in to £765,000 compared to year end 30 June 2015.

Earnings per share rose to 0.005p from a loss of 0.17p in the previous period.

The share price went up 20% to 0.5p at 1027 GMT on Friday.