23rd Jun 2014 09:34
LONDON (Alliance News) - Altona Energy PLC Monday said it continues to negotiate terms over a possible joint venture agreement at its Arckaringa project in Australia, and it has agreed to increase the time period for negotiation until July 31.
The Australian coal-focused energy company said conversations continue with Sino-Aus Energy Group Ltd and Wintask Group Ltd, who completed due diligence on the possible deal during May.
"Sino-Aus and Wintask are working constructively with Altona and because of the complexity of the project, it is entirely reasonable that the negotiation time be extended," Altona Executive Chairman Michael Zheng said in a statement. "It is encouraging that Sino-Aus and Wintask have invested so much time with the project to date, and we are pleased that they wish to conclude the negotiation of the JV agreement on or before July 31."
The company said, it has arranged a follow-up visit to the project for Sino-Aus in the coming weeks, after a previously planned visit was rescheduled due to bad weather.
Altona took full control of the Arckaringa project in March after CNOOC New Energy Investment Co Ltd's 51% holding reverted to Altona.
In January, Altona ended the CNOOC joint venture, saying that working with the Chinese firm was becoming increasingly frustrating.
Days after ending the joint venture, Altona signed a memorandum of understanding with Sino-Aus and Wintask for the development of Arckaringa.
The company said at the time that the investing parties plan to invest RMB300 million into Altona and the Arckaringa project to fund the completion of the site's bankable feasibility study.
Altona Energy shares were down 2.4% to 1.00 pence on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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