Final Results

23rd Nov 2009 07:00



Altona Energy Plc / Index: AIM / Epic: ANR / Sector: Exploration & Production

23 November 2009

Altona Energy Plc ('Altona' or 'the Company')

Final Results for the year ended 30 June 2009

and

Notice of Annual General Meeting

Altona Energy Plc, the AIM listed Australian based energy company, is pleased to announce its results for the year ended 30 June 2009 and gives notice of its Annual General Meeting to be held on 18 December 2009.

 

Overview:

Transformational period following agreement of the joint venture terms with CNOOC-NEI to evaluate the Company's estimated 7.8 billion tonne coal resource (non-JORC standard) in South Australia, one of the world's largest untapped energy banks, of which 1.287 billion tonnes at the Wintinna Deposit has been brought up to current JORC standards

Strategic partnership established with CNOOC-NEI, a subsidiary of China National Offshore Oil Corporation, one of the three largest state owned oil companies in the Peoples Republic of China, whose expertise, resources and stature will be instrumental in moving the Arckaringa Project forward and accelerating its commercialisation

CNOOC-NEI to fund and manage the BFS, with responsibility for assessing the full potential of the coal resource and bringing projects to development, in return for a 51% interest in Arckaringa Energy's exploration licences

Parties to evaluate proceeding progressively with coal development, Coal-to-Liquids and/or Synthetic Natural Gas, power co-generation and a range of other potential clean energy projects that will benefit South Australia

Tender process completed with leading international engineering companies for the role of Study Engineer to complete a BFS for the 'Base Case' Arckaringa Project, with the outcome of this process to be released in due course

Key technical studies for BFS commenced

Actively working with the South Australian Government and the Department of Primary Industry and Resources of South Australia to advance the Arckaringa Project

Became a Foundation Member of the Global Carbon Capture and Storage Institute 

Welcomed new major strategic institutional investor in Invesco Perpetual, who now hold a 15% interest

Altona Chairman Chris Lambert said, "This has been a transformational period where we have, through our agreement with CNOOC-NEI, significantly de-risked the Arckaringa Project and further advanced unlocking the potential of one of the world's largest untapped energy banks. We now have a clear path through to bankable feasibility and then the potential resultant multiple projects. We will be working with our strategic partner, CNOOC-NEI, on evaluating the optimal development of our 7.8 billion tonne coal resource, which may play a significant role in solving the energy requirements of South Australia.

"We look forward to working closely with all parties, including government and CNOOC-NEI, to maximise the Arckaringa Project's exciting and vast potential. With this in mind, we expect a positive re-rating in the value of your Company as more investors come to better understand this potential and our strategic partnership with a company of the stature and immense resources of CNOOC-NEI." 

For further information visit www.altonaenergy.com or please contact:

Christopher Lambert	Altona Chairman	Tel: +44 (0) 20 7024 8391
Christopher Schrape	Altona Managing Director	Tel: +44 (0) 20 7024 8391
Samantha Harrison	Ambrian Partners Limited	Tel: +44 (0) 20 7634 4705
Alexandra Carse	Ambrian Partners Limited	Tel: +44 (0) 20 7634 4725
Paul Youens	St Brides Media & Finance Ltd	Tel: +44 (0) 20 7236 1177
Hugo de Salis	St Brides Media & Finance Ltd	Tel: +44 (0) 20 7236 1177

The report and accounts for the year ended 30 June 2009 and the Notice of Annual General Meeting will be posted to shareholders on 24 November 2009.  An electronic version of the report and accounts as well as the notice will also available on the Company's website at www.altonaenergy.com.

The information contained in this announcement has been reviewed by Norman Kennedy, the Technical Director of the Company. Mr Kennedy holds a Bachelor of Science from the University of NSW, and is a Member of the Australian Institute of Mining and Metallurgy. Mr Kennedy has more than five years' experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a competent person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves. Mr Kennedy consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. 

  CHAIRMAN'S STATEMENT 

It gives me pleasure to report on Altona Energy plc's ('Altona' or 'the Company') progress over the reporting period. This has recently culminated in the achievement of a major milestone - signing a binding agreement with CNOOC New Energy Investment Ltd ('CNOOC-NEI') for the terms of the Unincorporated Evaluation Joint Venture ('UEJV') to develop the Arckaringa Project, as announced on 18 November 2009.

 

CNOOC-NEI is a subsidiary of China National Offshore Oil Corporation, one of the three largest state owned oil companies in the People's Republic of China, and specialises in and is dedicated to developing alternative energy sources, renewable energy, energy-efficient products and innovative technologies. Under the terms of the UEJV, a subsidiary of CNOOC-NEI will fund the completion of the bankable feasibility study ('BFS') for the Arckaringa Project and will act as the operator, not only to carry out the staged evaluation work under the BFS, but also taking responsibility for assessing the full potential of the coal resource and bringing projects to development. In return CNOOC-NEI receives a 51% interest in Arckaringa Energy's three exploration licences.

The Arckaringa Project, which has the potential to significantly affect the dynamics of fuel and power supply in South Australia, utilises the Company's coal deposits, which with estimated resources of 7.8 billion tones (based on non-JORC standards), are believed to constitute one of the world's largest untapped energy banks. These vast coal resources include a current JORC standard Coal Resource Estimate of 1.287 billion tonnes, covering an area of only approximately 25% of the Wintinna deposit, as announced in September 2008.

We are delighted to have secured a partner of CNOOC-NEI's major stature, whose expertise, resources, and stature will be instrumental in moving the Arckaringa Project forward.  CNOOC-NEI's role as the operator in the study, management and operation of the Arckaringa Project, in particular, will accelerate the Project's commercialisation.

It has been a pleasure to work intensively with CNOOC-NEI's technical and commercial teams over the past year, and we look forward to building a long-term strategic partnership together to unlock the vast potential and value of Arckaringa. During the year, the Company made positive progress on the BFS, commencing further key technical studies, including a Process Design Package to assess the preferred combination of commercially available CTL and Power technologies, and a Groundwater Management Plan to assess the optimum opencast mining strategy for the Wintinna deposit. Significantly, during the period the Company undertook an extensive tender process with international project engineering contractors for the appointment of the Study Engineer to oversee the completion of the BFS. We were very pleased with the quality of the submissions from these leading engineering firms, and we look forward to announcing the outcome of this process and the appointment of the Study Engineer in due course.

 

On a political level, the Board has been actively working with the South Australian Government and the Department of Primary Industry and Resources of South Australia to advance the Arckaringa Project. Both bodies have been highly supportive and we continue to work closely with them on the process for the Project's development.

 

In September 2009, Altona was pleased to become a Foundation Member of the Global Carbon Capture and Storage Institute ('the Global CCS Institute'), in line with its responsibility and commitment to the effective deployment of carbon capture and storage technology and minimisation of the environmental impact of the Arckaringa Project.

The Company was very pleased to welcome major institutional investor Invesco Perpetual as a significant shareholder in August 2009 by way of a share placement in an initial 3% interest, which it has subsequently increased to 15% by way of on-market acquisitions. I believe that the Company's ability to attract investors of this stature is a positive endorsement of Altona's future prospects. 

Having secured a strategic partnership with CNOOC-NEI, I believe the outlook for the Company is now particularly exciting, as we work together to progress the significant final stage of the BFS and the commercial development path forward for the Arckaringa Project.

The Group's loss for the reporting period of £1,120,000 for the period is in line with the Board's expectations.

I would like to thank our shareholders for their continued support as we emerge positively from a period of dramatic volatility on global financial markets. I would also like to thank the Board, management and team of consultants for their continued hard work and great support as we enter this next exciting and fundamental phase of the Arckaringa Project's progression. On behalf of the Board, I would like to particularly thank Mr Michael Zheng and his team in Beijing for their invaluable efforts in assisting in establishing the strategic partnership between Altona and CNOOC-NEI. 

Christopher Lambert

Chairman

20 November 2009

  OPERATIONS REPORT

Altona's principal business focus remains an integrated mine and CTL plant with a co-generation power facility utilising the vast coal resources within the Company's tenements in the Permian Arckaringa Basin of South Australia ('the Arckaringa Project'). These tenements cover 2,500 square kilometres in the northern part of the basin and include three major coal deposits - Westfield (EL3360), Wintinna (EL3361) and Murloocoppie (EL3362) - with combined coal resources exceeding 7.8 billion tonnes.

 

The Arckaringa Project has advanced significantly during the year. Major steps included the commencement of the final stage of the BFS, selection of a Study Engineer, and progress in securing both the funding and management structure to take the Project right through the BFS and approvals stage. 

The Base Case for the BFS covers:

A 10 Million Tonne Per Annum (MTPA) open cut mine based on the Wintinna deposit (EL 3361);

A CTL plant producing 10 Million Barrels Per Annum (MBPA) of liquid products, mainly zero sulphur diesel fuel, plus by-products including naptha, elemental sulphur and water; and

An Integrated Gasification Combined Cycle plant producing 1140 MW of power, of which 560 MW would be available for export. 

The Arckaringa Project demonstrates a high degree of added value - one tonne of Wintinna coal can yield one barrel of diesel fuel plus power and industrial products. 

Along with the positive results from the pre-feasibility technical studies completed last year, the Project Business Model has established a sound basis for the Board's decision to proceed to the final stage of the BFS.  The Model shows internationally competitive capital and unit operating costs, with the combination of liquids and power sales providing a solid platform for revenue growth. 

The Arckaringa Project is able to build on a number of key location and technical advantages, including:

Abundant and technically suitable coal resources at Wintinna and in the Company's other tenements;

The Adelaide - Darwin rail and road links, which transect the Company's tenements;

Growing demand for power and for diesel in South Australia, particularly from new mining developments in the north of the State;

Availability of proven technologies for coal gasification and combined cycle power generation and for the production and upgrade of a wide range of liquid fuels and industrial hydrocarbon feedstocks; and

Generation and potential supply of water to the region from mine dewatering and plant processes, subject to appropriate environmental management and approval.

Altona maintained a busy work programme during the reporting period. Of major importance was the completion of a Resource Estimate and geological model for the Wintinna Deposit, prepared by McElroy Bryan Geological Services (MBGS) of Sydney, using the coal seam and quality data from the previous year's drilling programme and exploration data from a total of 142 new and historic boreholes. The statement confirmed a coal resource estimate (prepared in accordance with the 2004 JORC Code) of 1,287 million tonnes (mt), including 837mt in the Measured and Indicated categories, comfortably in excess of the programme target. These resources are in an area that covers only 25% of the total area of the known Wintinna deposit, confirming the deposit's capacity to support a large scale coal conversion process for well beyond bankable mine planning horizons.

 

In parallel, coal quality test work was also completed at the Newcastle laboratories of ACIRL Pty. Ltd, in accordance with the test programme supervised by Altona's coal quality and testing consultants, QCC Resources Pty. Ltd. (part of DownerEDi Mining). Analysis of results has so far confirmed the coal quality characteristics defined from past programmes and in addition, the coal's washability profile.

In the second half of 2008, the Company sought and received strong bids from a range of international project engineering companies for the role of Study Engineer, covering the completion of a BFS. Altona has finalised contract documentation ahead of the announcement of the successful bidder. The positive outcome of the bidding process was in no small measure due to the input of Jacobs Australia and Enthalpy Pty Ltd, both highly qualified project management specialists, who were engaged by Altona to form a core 'Owners Team' of experienced staff to oversee the selection of the Study Engineer. Altona will be consolidating the Owners Team to work with and oversee the Study Engineer.

To facilitate the transition from pre-feasibility studies to the final stage of the BFS, Altona has already commissioned two key technical studies through its existing consultants: a Process Design Package ('PDP') from Jacobs Engineering UK for the delineation of the preferred combination of commercially available CTL and Power technologies, and; a Groundwater Management Plan ('GMP') from SKM in Adelaide for mine dewatering and water distribution.  Preliminary results from the PDP show that suitable technology will be available from interested technology suppliers to enable a CTL and Power plant to be successfully designed.  The GMP work is focussing on regional water supply impacts and mitigation, based on detailed groundwater modelling and covering the use and disposal of water in an area subject to water allocation approvals. The final results of both these studies will be integrated with the main body of engineering and design work undertaken by the Study Engineer.

Altona has established a community engagement programme as a critical part of gaining a future 'social licence to operate' for the Arckaringa Project, with priority attention being given to environmental and social impact issues. A community consultation process is underway, with senior company representatives regularly presenting the environmental and technical aspects of the Project to interested parties and to regional forums during the year. The Company has also held regular briefing sessions with the South Australian Government and the Opposition parties to keep them abreast of progress with the Project and to anticipate future approval requirements.

Additionally, and recognising that the CTL process is a prime example of 'clean coal technology' (incorporating the extraction and storage of CO2 or 'Carbon Capture and Storage' ('CCS')), the Company has identified potential CO2 sequestration options for the Project and will be investigating these further in the BFS. At the same time, Altona has been proactive in regard to the Australian Government's clean energy initiatives, including CCS, and during the year the Company was accepted as a Foundation Member of the Global Carbon and Capture Storage Institute, an initiative that involves both countries and internationally accredited companies in a concerted effort to increase understanding and development of viable CCS technology. Altona is also looking to collaborate with local universities and research institutions to pursue clean coal programs relevant to the Arckaringa Project.

During the past 12 months Altona has successfully prepared the Arckaringa Project for the transition into project design, approval and development. The Company now stands ready to work together with CNOOC-NEI, part of one of China's largest hydrocarbon companies, to complete the BFS and convert the Arckaringa Project's great potential into a profitable, world scale operation.

Chris Schrape

Managing Director

20 November 2009

  CONSOLIDATED INCOME STATEMENT 

For the year ended 30 June 2009

				Group
			Notes	2009 £'000	2008 £'000
Share based payments expense				(292)	-
Other administrative expenses				(1,037)	(824)
Total administrative expenses			4	(1,329)	(824)
Finance income			5	57	58
Loss before tax				(1,272)	(766)
Income tax benefit			9	152	-
Loss for the year				(1,120)	(766)
Loss per share expressed in pence - Basic and diluted			8	(0.31p)	(0.26p)

All of the operations are considered to be continuing.

BALANCE SHEETS

As at 30 June 2009

	Notes	Group 2009 £'000	Group 2008 £'000	Company 2009 £'000	Company 2008 £'000
ASSETS
Non-current assets
Intangible assets	10	6,609	4,987	-	-
Plant and equipment	11	30	49	29	47
Investment in subsidiaries	12	-	-	-	-
Other receivables	13	39	39	6,785	5,062
		6,678	5,075	6,814	5,109
Current assets
Trade and other receivables	13	217	93	52	73
Cash and cash equivalents		305	2,720	303	2,715
		522	2,813	355	2,788
TOTAL ASSETS		7,200	7,888	7,169	7,897
LIABILITIES
Current liabilities
Trade and other payables	14	210	205	107	137
NET ASSETS		6,990	7,683	7,062	7,760
EQUITY
Issued capital	15	358	358	358	358
Share premium		6,550	6,550	6,550	6,550
Merger reserve		2,001	2,001	2,001	2,001
Share based payments reserve		693	401	693	401
Foreign exchange reserve		643	508	-	-
Retained earnings		(3,255)	(2,135)	(2,540)	(1,550)
TOTAL EQUITY		6,990	7,683	7,062	7,760

CASH FLOW STATEMENTS 

For the year ended 30 June 2009

		Group		Company
		2009 £'000	2008 £'000	2009 £'000	2008 £'000
Operating activities
Loss for the period		(1,120)	(766)	(990)	(206)
Finance income		(57)	(58)	(57)	(58)
Depreciation		19	18	18	18
Foreign exchange on loans to controlled entities		-	-	(135)	(517)
Share options expensed		292	-	292	-
(Increase) / decrease in receivables		(124)	(28)	21	(34)
Increase / (decrease) in payables		116	176	(30)	75
Net cash flows used in operating activities		(874)	(658)	(881)	(722)
Investing activities
Payments to acquire tangible fixed assets		-	(61)	-	(59)
Payments to acquire intangible fixed assets		(1,598)	(1,656)	-	-
Loans to subsidiary		-	-	(1,588)	(1,588)
Interest received		57	58	57	58
Net cash outflows used in investing activities		(1,541)	(1,659)	(1,531)	(1,589)
Financing activities
Proceeds from issue of shares		-	3,615	-	3,615
Issue costs paid		-	(216)	-	(216)
Net cash inflow from financing		-	3,399	-	3,399
Net (decrease) / increase in cash and cash equivalents		(2,415)	1,082	(2,412)	1,088
Cash and cash equivalents at beginning of the year		2,720	1,638	2,715	1,627
Cash and cash equivalents at 30 June		305	2,720	303	2,715

STATEMENT OF CHANGES IN EQUITY

For the year ended 30 June 2009

	Share capital	Share Premium	Merger reserve	Share based payment reserve	Foreign currency translation reserve	Retained earnings	Total equity
Group	£'000	£'000	£'000	£'000	£'000	£'000	£'000
As at 1 July 2007	283	3,226	2,001	401	(1)	(1,369)	4,541
Loss for the year	-	-	-	-	-	(766)	(766)
Currency translation differences	-	-	-	-	509	-	509
Total recognised income and expense for the year	-	-	-	-	509	(766)	(257)
Share capital issued	75	3,540	-	-	-	-	3,615
Cost of share issue	-	(216)	-	-	-	-	(216)
Balance at 30 June 2008	358	6,550	2,001	401	508	(2,135)	7,683
Loss for the year	-	-	-	-	-	(1,120)	(1,120)
Currency translation differences	-	-	-	-	135	-	135
Total recognised income and expense for the year	-	-	-	-	135	(1,120)	(985)
Issue of options	-	-	-	292	-	-	292
Balance at 30 June 2009	358	6,550	2,001	693	643	(3,255)	6,990

Company	£'000	£'000	£'000	£'000	£'000	£'000	£'000
As at 1 July 2007	283	3,226	2,001	401	-	(1,344)	4,567
Loss for the year	-	-	-	-	-	(206)	(206)
Total recognised income and expense for the year	-	-	-	-	-	(206)	(206)
Shares capital issued	75	3,540	-	-	-	-	3,615
Cost of share issue	-	(216)	-	-	-	-	(216)
Balance at 30 June 2008	358	6,550	2,001	401	-	(1,550)	7,760
Loss for the year	-	-	-	-	-	(990)	(990)
Total recognised income and expense for the year	-	-	-	-	-	(990)	(990)
Issue of options	-	-	-	292	-	-	292
Balance at 30 June 2009	358	6,550	2,001	693	-	(2,540)	7,062

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 

1. ACCOUNTING POLICIES

The principal accounting policies are summarised below. They have been applied consistently throughout the period.

BASIS OF PREPARATION

The financial statements are presented in Sterling and all values are rounded to the nearest thousand pounds (£'000) unless otherwise stated.

The financial statements have been prepared on a going concern basis.  As is common with many junior mining companies, the Company raises money for exploration and capital projects as and when required.  There can be no assurance that the Group's projects will be fully developed in accordance with current plans or completed on time or to budget.  Future work on the development of these projects, the levels of production and financial returns arising there from may be adversely affected by factors outside the control of the Group. Under the terms of the UEJV, a subsidiary of CNOOC-NE1, will fund the BFS for the Arckaringa Project and thereby the Group's licence commitments.

Notwithstanding the loss incurred during the period under review, the Directors are of the opinion that based on the Group and Company's cash flow forecasts and expected discretionary and contractual commitments the preparation of the Group and Company's accounts on a going concern basis is appropriate. This is a critical stage in the development of the Arckaringa project and the directors can confirm that working capital will be managed to ensure sufficient funding is retained by the Group to allow it to continue on a going concern for the foreseeable future. It is noted that the Company completed a placement of new ordinary shares in August 2009 to raise £500,000 before costs, to provide additional working capital for the Group, as disclosed in Note 19, Post Balance Sheet Events.

These financial statements have been prepared in accordance with IFRS as adopted for use in the European Union (EU), and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

NEW STANDARDS AND INTERPRETATIONS

The IFRS financial information has been drawn up on the basis of accounting standards, interpretations and amendments effective at the beginning of the accounting period.

There were no amendments to published standards and interpretations to existing standards effective in the year adopted by the Group.

Standards, interpretations and amendments to published standards effective in the year but which are not relevant to the Group:

International Accounting Standards (IAS/IFRS)		Effective date (periods beginning on or after)
IFRIC 12	Service concession arrangements	1 Jan 2008
IFRIC 14	IAS 19 - The limit on a defined benefit asset, minimum funding requirements and their interaction	1 Jan 2008
IFRIC 13	Customer loyalty programmes	1 Jul 2008
IAS 39/IFRS7	Reclassification of financial instruments	1 Jul 2008

Standards, Interpretations and amendments, which are effective for reporting periods beginning after the date of these financial statements:

International Accounting Standards (IAS/IFRS)		Effective date (periods beginning on or after)
IFRIC 16	Hedges of a Net Investment in a Foreign Operation	1 Oct 2008
IAS 1	Amendment - Presentation of financial statements: a revised presentation	1 Jan 2009
IAS 23	Amendment - Borrowing costs	1 Jan 2009
IAS 32 and 1	Amendments - Puttable financial instruments and obligations arising on Liquidation	1 Jan 2009
IFRS 1*	First-time adoption of international accounting standards	1 Jan 2009
IFRS 2	Amendment - Vesting conditions and cancellations	1 Jan 2009
IFRS 2	Amendment - Share-based payment: vesting conditions and cancellations	1 Jan 2009
IFRS 7*	Amendment - Improving Disclosures about Financial Instruments	1 Jan 2009
IFRS 8	Operating Segments	1 Jan 2009
IFRS1 and IAS 27	Amendments - Cost of an Investment in a subsidiary, jointly controlled entity or associate	1 Jan 2009
IFRIC 15	Agreements for the Construction of Real Estate	1 Jan 2009
IFRIC9 and IAS 39*	Amendments - Embedded derivatives	30 Jun 2009
IAS 27	Amendment - Consolidated and separate financial statements	1 Jul 2009
IAS 39*	Amendment -Recognition and measurement: Eligible hedged items	1 Jul 2009
IFRS 3	Revised - Business combinations	1 Jul 2009
IFRIC 17*	Distributions of non-cash assets to owners	1 Jul 2009
IFRIC 18*	Transfers of assets from customers	1 Jul 2009
IFRS 1*	Additional exemptions for first-time adopters	1 Jan 2010
IFRS 2*	Amendment - Group Cash-settled Share Based payment transactions	1 Jan 2010

Except for the future adoption of IFRS 3 Revised and the future adoption of IAS 23 the above standards, interpretations and amendments will not significantly affect the Group's results or financial position, although the adoption of IFRS 8 and IAS 1 will affect presentation and note disclosures.

Items marked * had not yet been endorsed by the European Union at the date that these financial statements were approved and authorised for issue by the Board.

BASIS OF CONSOLIDATION 

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries). Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group. All inter-group transactions, balances, income and expenses are eliminated in full on consolidation.

SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS

The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

(i) Impairment of intangibles

The Group determines whether intangibles are impaired when facts and circumstances suggest that the carrying amount may exceed its recoverable amount. Such indicators include the point at which a determination is made as to whether or not commercial reserves exist. The carrying amount of intangibles at 30 June 2009 was £6,609,000 (2008: £4,987,000).

(ii) Share based payment transactions

The Group measures the cost of equity settled transactions by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined using a Black-Scholes model. Refer to Note 16 for variables entered into the model.

FOREIGN CURRENCIES 

The functional currency and presentation currency of the company is UK Pounds Sterling.

Transactions entered into by group entities in currency other than the currency of the primary economic environment in which they operate (the "functional" currency) are recorded at rates ruling when the transactions occur.  Foreign currency monetary assets and liabilities are translated at the rates ruling at the balance sheet date.

Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated to Pounds Sterling at the foreign exchange rates ruling at the dates the fair value was determined.

On consolidation, the results of the operations are translated into Pounds Sterling at average rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the balance sheet date. Exchange differences arising on translating the opening net assets at closing rate are recognised directly in equity (the "foreign exchange reserve").

TAXATION 

Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised except for differences arising on investments in subsidiaries and jointly controlled entities where the group is able to control the timing of the reversal of the difference and it is probable that the difference will not reverse in the foreseeable future.

Recognition of the deferred tax assets is restricted to those instances where it is probable that the taxable profit will be available against which the difference can be utilised.

Deferred tax is also based on rates enacted or substantively enacted at the balance sheet date and expected to apply when the related deferred tax asset is realised or liability settled.

Current and deferred tax is charged or credited in the consolidated income statement, except when it relates to items charged or credited directly to equity, in which case the related tax is also dealt with in equity.

Research and Development tax credits are recognised when they can be determined to be reliably measured.

BUSINESS COMBINATIONS

Acquisitions of subsidiaries and businesses are accounted for using the purchase method. The cost of the business combination is measured as the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquiree, plus any costs directly attributable to the business combination.  The acquiree's identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 Business Combinations are recognised at their fair values at the acquisition date

INTANGIBLE ASSETS - EXPLORATION AND EVALUATION ASSETS

Exploration and evaluation expenditure in relation to each separate area of interest are recognised as an exploration and evaluation asset in the year in which they are incurred where the following conditions are satisfied:

(i) the rights to tenure of the area of interest are current; and 

(ii) at least one of the following conditions must also be met:

a) the exploration and evaluation expenditures are expected to be recouped through successful development and exploration of the area of interest, or alternatively, by its sale, or 

b) Exploration and evaluation activities in the area of interest have not, at the reporting date, reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing.

Exploration and evaluation assets are initially measured at cost and included acquisition of rights to explore, studies, exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation and amortisation of assets used in exploration and evaluation activities. General and administrative costs are only included in the measurement of exploration and evaluation costs where they are related directly to operational activities in a particular area of interest.

Exploration and evaluation assets are assessed for impairment when facts or circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the exploration and evaluation asset (or the cash-generating unit(s) ('CGU') to which it has been allocated, being no larger than the relevant area of interest) is estimated to determine the extent of the impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in previous years.

Where a decision is made to proceed with development in respect of a particular area of interest, the relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to development.

REHABILITATION

Costs for site restoration are provided over the life of the facility from when exploration commences and are included in the costs of that stage.  Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal and rehabilitation of the site in accordance with clauses of the mining permits. Such costs have been determined using estimates of future costs, current legal requirements and technology on a discounted basis.  Any changes in the estimates for the costs are accounted on a prospective basis.  In determining the costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly the costs have been determined on the basis that the restoration will be completed within one year of abandoning the site.

PLANT AND EQUIPMENT

Plant and equipment are measured on the cost basis less depreciation and impairment losses.

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets employment and subsequent disposal. The expected net cash flows have been discounted to their present value in determining recoverable amounts.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probably that future economic benefit associated with the item will flow to the entity and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the consolidated income statement during the financial period in which they are incurred. 

Depreciation

Depreciation is calculated on a straight-line basis so as to write off the net cost of each asset over its expected useful life to its estimated residual value. Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the straight-line method.  The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period, with the effect of any changes recognised on a prospective basis.

The following useful lives are used in the calculation of depreciation:

Plant and equipment

3 -20 years

LEASING

Where substantially all of the risks and rewards incidental to ownership are not transferred to the Group (an 'operating lease'), the total rentals payable under the lease are charged to the consolidated income statement on a straight-line basis over the lease term. The aggregate benefit of lease incentives is recognised as a reduction of the rental expense over the lease term on a straight-line basis. The land and buildings elements of property leases are considered separately for the purposes of lease classification. 

FINANCIAL ASSETS

The only financial assets currently held by the Group are classified as loans and receivables. These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.  They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment.

Impairment provisions are recognised when there is objective evidence (such as significant financial difficulties on the part of the counterparty or default or significant delay in payment) that the Group will be unable to collect all of the amounts due under the terms receivable, the amount of such a provision being the difference between the net carrying amount and the present value of the future expected cash flows associated with the impaired receivable.  For receivables, which are reported net, such provisions are recorded in a separate allowance account with the loss being recognised within administrative expenses in the consolidated income statement. On confirmation that the receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision.

Loans and receivables comprise trade and other receivables and cash in the balance sheet.

Included within loans and receivables are cash and cash equivalents which include cash in hand and other short term highly liquid investments with a maturity of three months or less. Any interest earned is accrued monthly and classified as interest.  Short term deposits comprise deposits made for varying periods of between one day and three months.

For the purposes of the Cash Flow Statement, cash and cash equivalents consist of cash and cash equivalents as defined above.

Derecognition

Financial assets

The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire; or it transfers the asset and substantially all the risk and rewards of ownership of the asset to another entity. 

FINANCIAL LIABILITIES

The Group classifies its financial liabilities into one of two categories, depending on the purpose for which the asset was acquired.  These are either fair value through profit or loss or other financial liabilities.  At present, the Group does not have any liabilities classified as fair value through profit or loss.

The Group's accounting policy for the other financial liabilities category is as follows:

Trade payables and other short-term monetary liabilities, are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method. All interest and other borrowing costs incurred in connection with the above are expensed as incurred and reported as part of financing costs in the consolidated income statement.

Derecognition

Financial liabilities

The Group derecognises financial liabilities when, and only when, the Group's obligations are discharged, cancelled or they expire.

 

PROVISIONS

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation.  Where a provision is measured using the cashflows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

THE COMPANY'S INVESTMENTS IN SUBSIDIARIES

In its separate financial statements the Company recognises its investments in subsidiaries at cost, less any provision for impairment. The cost of acquisition includes directly attributable professional fees and other expenses incurred in connection with the acquisition.

FINANCE INCOME

Finance income is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial assets and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

MERGER RESERVE

The difference between the fair value of an acquisition and the nominal value of the shares allotted in a share exchange has been credited to a merger reserve account, in accordance with the merger relief provisions of the Companies Act 2006 and accordingly no share premium for such transactions set-up.

SHARE BASED PAYMENTS

The Group issues equity-settled share-based payments to certain employees. Equity-settled share-based payments are measured at fair value at the date of grant. The equity-settled share-based payments are expensed to the consolidated income statement over a straight line basis over the vesting period based on the Group's estimate of shares that will eventually vest. 

Where equity instruments are granted to persons other than employees, the consolidated income statement is charged with the fair value of goods and services received over a straight line basis over the vesting period based on the Group's estimate of shares that will eventually vest, except where it is in respect to costs associated with the issue of securities, in which case it is charged to the share premium account.

 

2. FINANCIAL INSTRUMENTS - RISK MANAGEMENT

The financial instruments were categorised as follows:

	Loans and receivables	Other financial liabilities	Total
Group 30 June 2009	£'000	£'000	£'000
Assets as per balance sheet
Other receivables - non current	39	-	39
Trade and other receivables	40	-	40
Cash and cash equivalents	305	-	305
	384	-	384
Liabilities as per balance sheet
Trade and other payables	-	210	210
	-	210	210

Group 30 June 2008
Assets as per balance sheet
Other receivables - non current	39	-	39
Trade and other receivables	52	-	52
Cash and cash equivalents	2,720	-	2,720
	2,811	-	2,811
Liabilities as per balance sheet
Trade and other payables	-	205	205
	-	205	205

Company 30 June 2009
Assets as per balance sheet
Other receivables - non current	36	-	36
Trade and other receivables	27	-	27
Cash and cash equivalents	303	-	303
	366	-	366
Liabilities as per balance sheet
Trade and other payables	-	107	107
	-	107	107

Company 30 June 2008
Assets as per balance sheet
Other receivables - non current	36	-	36
Trade and other receivables	32	-	32
Cash and cash equivalents	2,715	-	2,715
	2,783	-	2,783
Liabilities as per balance sheet
Trade and other payables	-	137	137
	-	137	137

The Group's financial instruments comprise of cash and sundry receivables and payables that arise directly from its operations.

The main risks arising from the Group's financial instruments are credit risk, liquidity risk and currency risk. The directors review and agree policies for managing these risks and these are summarised below. There have been no substantive changes to the Group's exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note.

There is no significant difference between the carrying value and fair value of receivables and cash and cash equivalents.

Credit Risk

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Group. The Group has adopted a policy of only dealing with creditworthy counterparties, as assessed by the Directors using relevant available information.

Credit risk also arises on cash and cash equivalents and deposits with banks and financial institutions. The Group's cash deposits are only held in banks and financial institutions which are independently rated with a minimum credit agency rating of A.

There were no bad debts recognised during the period and there is no provision required at balance date.

Liquidity risk

Liquidity risk arises from the Group's management of working capital and the finance charges and principal repayments on its debt instruments. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. Short term payables are classified as those payables that are due within 30 days.

The Group's policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. To achieve this aim, it seeks to maintain cash balances (or agreed facilities) to meet expected requirements for a period of at least 45 days. 

Currency risk

The functional currencies of the companies in the Group are Pounds Sterling and Australian Dollars. The Group does not hedge against the effects of movements in exchange rates. These risks are monitored by the Board on a regular basis.

The following table discloses the year end rates applied by the Group for the purposes of producing the financial statements:

Foreign currency units to £1.00 GBP		Australian Dollar
At 30 June 2009		2.05
At 30 June 2008		2.08

The carrying amounts of the Group's foreign currency denominated monetary assets and monetary liabilities at the reporting date are as follows:

		Liabilities		Assets
		2009 £'000	2008 £'000	2009 £'000	2008 £'000
Australia Dollars		103	66	170	29

The impact of a 10% fluctuation in the value of the Australia Dollar would result in translation gains or losses of £7,000 (2008: £4,000) movement in the consolidated income statement and net assets of the Group.

Borrowing facilities and interest rate risk

The Group and Company finances its operations through the issue of equity share capital. There are no significant borrowings and therefore no significant exposure to interest rate fluctuations.

The Group and Company manages the interest rate risk associated with the Group and Company cash assets by ensuring that interest rates are as favourable as possible, whether this is through investment in floating or fixed interest rate deposits, whilst managing the access the Group and Company requires to the funds for working capital purposes.

The interest rate profile of the Group's financial assets and liabilities was as follows:

30 June 2009			Pound Sterling £'000	Australian Dollar £'000	Total £'000
Cash at bank floating interest rate			302	-	302
Cash at bank on which no interest is received			1	2	3
			303	2	305

30 June 2008			Pound Sterling £'000	Australian Dollar £'000	Total £'000
Cash at bank floating interest rate			2,715	-	2,715
Cash at bank on which no interest is received			-	5	5
			2,715	5	2,720

At balance sheet date, cash at bank floating interest rate is accruing weighted average interest of 0.76% (2008: 5.48%). As required by IFRS 7, the Group has estimated the interest rate sensitivity on year end balances and determined that a two percentage point increase or decrease in the interest rate earned on floating rate deposits would have caused a corresponding increase or decrease in net income in the amount of £6,000 (2008: £54,000).

Capital Management

The Group considers its capital to comprise its ordinary share capital, share premium and accumulated retained losses as well as the reserves (consisting of share based payments reserve, foreign currency translation reserve and merger reserve).

The Group's objective when maintaining capital is to safeguard the entity's ability to continue as a going concern, so that it can provide returns for shareholders and benefits for other stakeholders.

The Company meets its capital needs by equity financing. The Group sets the amount of capital it requires to fund the Groups project evaluation costs and administration expenses. The Group manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. 

The Company and Group do not have any derivative instruments or hedging instruments. It has been determined that a sensitivity analysis will not be representative of the Company's and Group's position in relation to market risk and therefore, such an analysis has not been undertaken.

Fair values

The fair values of the Group and Company's financial instruments approximates to the book value.

3. REVENUE AND SEGMENTAL INFORMATION

The Group had no operating revenue during the period.

In the opinion of the Directors, the Group operates in one business segment, the exploration and evaluation of coal. The Parent Company operates a head office based in the United Kingdom which incurred certain administration and corporate costs. The Group's operations span two countries, Australia and the United Kingdom, where each geographical location is characterised by its separate business segment as above therefore the segmental information below only reflects the activities of Group by business segment.

Segment revenue and segment result

	Segment revenue		Segment result
Continuing operations	2009 £'000	2008 £'000	2009 £'000	2008 £'000
Coal (Australia)	-	-	(148)	(42)
Administration and Corporate  (United Kingdom)	-	-	(1,181)	(782)
	-	-	(1,329)	(824)
Finance income			57	58
Loss before tax			(1,272)	(766)
Income tax benefit			152	-
Loss after tax			(1,120)	(766)

The share based payment charge is included within the United Kingdom segment result.

Segment assets and liabilities

	Total Assets		Total Liabilities
	2009 £'000	2008 £'000	2009 £'000	2008 £'000
Coal (Australia)	6,779	5,016	103	68
Administration and Corporate  (United Kingdom)	421	2,872	107	137
Total of all segments	7,200	7,888	210	205

Other segment information

	Depreciation and amortisation		Capital expenditure
Continuing operations	2009 £'000	2008 £'000	2009 £'000	2008 £'000
Coal (Australia)	1	-	1,568	1,624
Administration and Corporate  (United Kingdom)	18	18	-	59
	19	18	1,568	1,683

4. LOSS FROM OPERATIONS

			Group
			2009 £'000	2008 £'000
This has been arrived at after charging/(crediting):
Audit fee			20	-
Fees payable to the Company's auditor and its associates in respect of :
The auditing of accounts of subsidiaries of the Company pursuant to legislation			4	-
Audit fee - prior year auditor			-	12
Fees payable to the Company's auditor and its associates in respect of :
Other fees			-	-
Audit fee - prior year subsidiary auditor			-	5
The auditing of accounts of associates of the Company pursuant to legislation
Other fees			-	6
Depreciation			19	18
Staff costs (Note 6)			220	184
Share based payments expense			292	-
Operating lease charges - land and buildings			42	42
Net foreign currency losses			2	1

5. FINANCE INCOME

			Group
			2009 £'000	2008 £'000
Bank interest received / receivable			57	58

6. STAFF COSTS (INCLUDING DIRECTORS)

			Group
			2009 £'000	2008 £'000
Salaries and fees			440	396
Long term benefits			10	2
Share based payments			292	-
Salaries expense			742	398
Capitalised to intangible assets			(230)	(214)
Total			512	184

The Group averaged 7 employees during the period ended 30 June 2009 (2008: 6 employees). The Company averaged 6 employees during the period (2008: 6 employees). The amount capitalised to intangible assets relates to a portion of the staff costs in connection with three of the Group's Directors.

Directors have been assessed as the only key management of the Group.

		Group
Key Management personnel remuneration		2009 £'000	2008 £'000
Directors' short term benefits
Directors' fees and salary		408	396
Long term benefits		10	2
Share based payments		284	-
Total Director Remuneration		702	398
The amounts set out above include remuneration for the highest paid Director as follows:
Short term benefits		144	144
Total		144	144

No directors exercised any share options during the period. The long term benefits relate to compulsory superannuation in Australia.

The Company provides Directors' and Officers' liability insurance at a cost of £13,000 (2008: 10,000). This cost is not included in the above table.

7. LOSS FOR THE FINANCIAL YEAR

The Company has taken advantage of Section 408 of the Companies Act 2006 and has not included its own income statement in these financial statements. The Company's loss for the year was £990,000 (2008: loss £206,000).

8. LOSS PER SHARE 

The loss for the period attributed to shareholders is £1,120,000 (2008: Loss £766,000).

This is divided by the weighted average number of Ordinary shares outstanding calculated to be 358.2 million (2008: 294.2 million) to give a basic loss per share of 0.31p (2008: basic loss per share of 0.26p).

As inclusion of the potential ordinary shares would result in a decrease in the loss per share they are considered to be anti-dilutive and, as such, the effect of the dilution has not been applied in the calculation. The potential future share issues that may dilute the loss per share relate to 52,500,000 options on issue (2008: 27,750,000) disclosed at note 16.

9. INCOME TAX

			Group
			2009 £'000	2008 £'000
Current year taxation
Group corporation tax at 28% - 30% on results for the period (2008: 28% - 30%)			152	-
Factors affecting the tax charge for the year
Loss on ordinary activities before tax			(1,272)	(766)
Loss on ordinary activities at the Group standard rate of 28% - 30% (2008: 28% - 30%)			(359)	(226)
Effects of:
Non deductible expenses			83	-
Temporary differences			(342)	(486)
Tax concession (research & development)			152	-
Future tax benefit not brought to account			618	712
Total tax credit for the period			152	-

Unprovided deferred tax asset:
Group tax losses carried forward of £8,835,000 (2008: £6,720,000) multiplied by standard rate of corporation tax 28% - 30%, recoverable only when it is probable that the taxable profit will be available.			2,600	1,964

10. INTANGIBLE ASSETS

			Group
			2009 £'000	2008 £'000
Exploration and evaluation
Cost
At beginning of period			4,987	2,957
Additions			1,568	1,622
Currency translation adjustment			54	408
Carrying value at 30 June			6,609	4,987

Exploration and evaluation relates to the development of an integrated coal-to-liquid plant and co-generation power facility, supported by an open-cut coal mine at its Arckaringa Project in South Australia.

11. PLANT AND EQUIPMENT

	Group £'000	Company £'000
Cost
Opening balance at 1 July 2007	8	8
Additions	61	59
At 30 June 2008	69	67
Additions	-	-
At 30 June 2009	69	67
Depreciation
Opening balance at 1 July 2007	2	2
Depreciation charge for the period	18	18
At 30 June 2008	20	20
Depreciation charge for the year	19	18
At 30 June 2009	39	38
Net book value
At 30 June 2009	30	29
At 30 June 2008	49	47
At 30 June 2007	6	6

12. INVESTMENTS

UNLISTED INVESTMENTS

	Group		Company
	2009 £'000	2008 £'000	2009 £'000	2008 £'000
Cost
Investments in subsidiaries (i)	-	-	-	-

(i) The investment in subsidiaries is £2 (2008: £2).

Subsidiaries of Altona Energy Plc

Entity	Country of Registration	Holding		Nature of Business
		2009 %	2008 %
Direct
Altona Australia Pty Limited	Australia	100	100	Holding Company
Indirect
Arckaringa Energy Pty Limited	Australia	100	100	Evaluation of the Arckaringa Project

13. TRADE AND OTHER RECEIVABLES

	Group		Company
	2009 £'000	2008 £'000	2009 £'000	2008 £'000
Current trade and other receivable
Other receivables (i)	40	52	27	32
Tax credit receivable	152	-	-	-
Prepayments and accrued income	25	41	25	41
	217	93	52	73

Non current trade and other receivable
Loans due from Group companies (ii)	-	-	6,749	5,026
Rent deposit (iii)	36	36	36	36
Tenement bond	3	3	-	-
	39	39	6,785	5,062

(iii) Rent deposit is refundable upon expiry of the lease.

14. TRADE AND OTHER PAYABLES

	Group		Company
	2009 £'000	2008 £'000	2009 £'000	2008 £'000
Trade payables	167	187	71	119
Accruals and other payables	43	18	36	18
	210	205	107	137

Trade and other payables are non interest bearing and are normally settled on terms of 30 days from month end.

15. SHARE CAPITAL

Authorised

	Group		Company
	2009 £'000	2008 £'000	2009 £'000	2008 £'000
1,000,000,000 Ordinary shares of 0.1p each (2008: 1,000,000,000)	1,000	1,000	1,000	1,000

Allotted, called up and fully paid

	Group		Company
	2009 £'000	2008 £'000	2009 £'000	2008 £'000
358,165,784 ordinary shares of 0.1p each (2008: 358,165,784)	358	358	358	358

There were no share issues in the year ended 30 June 2009.

During the prior period the Company issued the following Ordinary 0.1 pence fully paid shares for cash:

Date	Issue Price	Number of Shares	Nominal Value £'000
1 July 2007	Opening balance	283,165,784	283
29 February 2008	Placing at 4.75p per share (gross)	22,000,000	22
6 June 2008	Placing at 4.85p per share (gross)	53,000,000	53
30 June 2008	Closing balance	358,165,784	358

The following described the nature and purpose of each reserve within owners' equity:

Reserve	Description and Purpose
Share premium	Amount subscribed for share capital in excess of nominal value.
Merger reserve	Reserve created on issue of shares on acquisition of subsidiaries in prior years.
Share based payments reserve	Reserve created for equity settled share based payments to employees and consultants.
Foreign exchange reserve	Cumulative translation differences of net assets of subsidiaries.
Retained losses	Cumulative net gains and losses recognised in the consolidated income statement.

16. SHARE BASED PAYMENTS

The Company periodically grants share options to employees, consultants and Directors, as approved by the Board. At 30 June 2009 and 30 June 2008, the following share options were outstanding in respect of the ordinary shares:

Year ended 30 June 2009

Grant Date	Expiry Date	Number of Options	Issued in Year	Forfeited / Expired	Exercised in Year	Number of Options Outstanding	Exercise Price per Option
10.03.05	10.03.10	1,750,000	-	-	-	1,750,000	1.00p
03.08.06	02.08.11	3,000,000	-	-	-	3,000,000	8.00p
03.08.06	02.08.11	3,000,000	-	-	-	3,000,000	12.00p
03.08.06	02.08.11	3,000,000	-	-	-	3,000,000	16.00p
13.10.06	12.10.11	6,000,000	-	-	-	6,000,000	7.00p
13.10.06	12.10.11	5,000,000	-	-	-	5,000,000	10.00p
13.10.06	12.10.11	3,000,000	-	-	-	3,000,000	14.00p
24.04.07	23.04.12	1,500,000	-	-	-	1,500,000	4.75p
24.04.07	23.04.12	1,500,000	-	-	-	1,500,000	9.50p
20.08.08	19.08.13	-	12,375,000	-	-	12,375,000	5.00p
20.08.08	19.08.13	-	12,375,000	-	-	12,375,000	7.00p
		27,750,000	24,750,000	-	-	52,500,000

Year ended 30 June 2008

Grant Date	Expiry Date	Number of Options	Issued in Year	Forfeited / Expired	Exercised in Year	Number of Options Outstanding	Exercise Price per Option
10.03.05	10.03.10	1,750,000	-	-	-	1,750,000	1.00p
03.08.06	02.08.11	3,000,000	-	-	-	3,000,000	8.00p
03.08.06	02.08.11	3,000,000	-	-	-	3,000,000	12.00p
03.08.06	02.08.11	3,000,000	-	-	-	3,000,000	16.00p
13.10.06	12.10.11	6,000,000	-	-	-	6,000,000	7.00p
13.10.06	12.10.11	5,000,000	-	-	-	5,000,000	10.00p
13.10.06	12.10.11	3,000,000	-	-	-	3,000,000	14.00p
24.04.07	23.04.12	1,500,000	-	-	-	1,500,000	4.75p
24.04.07	23.04.12	1,500,000	-	-	-	1,500,000	9.50p
		27,750,000	-	-	-	27,750,000

The highest and lowest price of the Company's shares during the year was 7.00p and 0.85p (2008: 8.25p and 2.80p). The share price at year end was 4.75p (2008: 4.01p).

There was no vesting period for options other than for the 7.00p options issued during the period which vested 12 months from the date of grant. The share based payment expense is recognised over the vesting period.

The weighted average exercise price of share options at 30 June 2009 was 7.9p (2008: 9.8p).

The inputs into the Black Scholes model are as follows:

Grant date	Share price at date of grant	Exercise price	Volatility %	Option life	Dividend yield	Risk-free investment rate	Fair value per option
20.08.2008	3.15p	5.0p	0.60	19.08.2013	0%	4.49%	1.4p
20.08.2008	3.15p	7.0p	0.60	19.08.2013	0%	4.49%	1.1p

Expected volatility was determined by calculating the historical volatility of the Group's share price since listing. 

The Group recognised a total expense of £292,000 (2008: £Nil) related to equity-settled share based payment transactions during the year. There is a further £19,000 to be recognised in the subsequent financial period, in relation to the above issue of options.

17. COMMITMENTS 

As at 30 June 2009, the Group had entered into the following material commitments:

Exploration commitments

The Group has three exploration tenements in South Australia. The exploration commitments relating to EL 3361 Wintinna, to EL 3360 Westfield and to EL 3362 Murloocoppie were met during the 2009 financial year. Under the terms of its three ELs, the Group is required to spend a total of AUD $345,000 (£168,000) for the period 6 June 2009 to 5 June 2010.

Total operating lease commitments

Leasing arrangements

Operating leases relate to office facilities. The Company entered into a 5 year lease with a break clause after 3 years. The lease was entered into jointly, with Braemore Resources Plc (Refer Note 18). The below numbers represent the total lease commitments for the office facility.

	Group		Company
	2009 £'000	2008 £'000	2009 £'000	2008 £'000
Non-cancellable operating lease payments
Not longer than one year	62	83	62	83
Longer than one year and not longer than five years	-	62	-	62
	62	145	62	145

18. RELATED PARTY TRANSACTIONS 

The Key Management personnel disclosures are included in Note 6 to the financial statements.

During the period the subsidiary company Arckaringa Energy Pty Ltd paid geological consultancy fees and expenses reimbursements of £36,000 (2008: £72,000), and director fees of £24,000 (2008: £24,000) to Rank Geological Services Pty Ltd, a company related to Norman Kennedy, Director of Altona Energy Plc. At 30 June 2009 £3,000 (2008: £7,000) of the total balance was outstanding. The Director fees are included in the numbers disclosed in Note 6 Staff Costs.

During the period, the Company paid £12,000 (2008: £Nil) to Reabold Ltd, a company related to Anthony Samaha, for consulting fees. These fees are included in the numbers disclosed in Note 6 Staff Costs.

During the period, the Company paid £144,000 (2008: £144,000) to CJL Consultants Limited, a company related to Christopher Lambert, for director fees. These fees are included in the numbers disclosed in Note 6 Staff Costs.

During the period, the subsidiary company Arckaringa Energy Pty Ltd paid rent and other administrative expenses of £19,000 (2008: £8,000) to PepinNini Minerals Limited, a company of which Norman Kennedy and Christopher Lambert are directors. At 30 June 2009, there was £4,000 owing (2008: £Nil).

The Company has entered into a joint lease of office facilities with Braemore Resources Plc, a related party due to common Directors. At 30 June 2009, there was £16,000 owing from Braemore Resources Plc (2008: £Nil).

19. POST BALANCE SHEET EVENTS 

In August 2009, the Company completed a placing with institutional investor, Invesco Perpetual, issuing 12,195,122 new ordinary shares at 4.10 pence per share to raise £500,000 before costs, to provide additional working capital for the Company.

On 18 November 2009, the Company announced that its wholly owned subsidiary, Arckaringa Energy Pty Ltd, had signed a binding agreement with CNOOC New Energy Investment Ltd that agrees the terms of the Unincorporated Evaluation Joint Venture Agreement to fund the BFS for the Arckaringa Project and the pathway for its development. The Agreement is conditional upon the receipt by the parties of the relevant third party consents, including from the Chinese government and the Australian Foreign Investment Review Board.

20. CONTINGENT LIABILITIES

In a prior financial period, the Group acquired the subsidiary Arckaringa Energy Pty Ltd. At that time Arckaringa Energy Pty Ltd was the holder of three exploration licences in South Australia. The Group obtained advice that this acquisition could be assessed as not subject to the land rich stamp duty provisions relating to South Australian property. Revenue SA has been reviewing this acquisition and at the date of these accounts, the Group has not yet received an assessment. The advice provided to the Group indicates that should stamp duty ultimately be payable it may amount to AUD$252,000 (GBP £123,000).

In the event that an additional stamp duty payment is required the amount paid would represent an increase in the amount recognised as capitalised exploration and evaluation expenditure.

The Group has not recognised a liability in connection to additional stamp duty as the Directors believe that no further stamp duty is payable in connection to this matter, based on professional advice received at the time of acquisition and subsequently, and in the absence of further details from Revenue SA.

  NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that the Annual General Meeting of ALTONA ENERGY PLC (the "Company") will be held at Hilton London Green Park (Blake Room 2), Half Moon Street, Mayfair, London W1J 7BN on 18 December 2009 at 10.30 a.m. for the purpose of considering and, if thought fit, passing the following resolutions which will be proposed as ordinary resolutions in the case of resolutions 1, 2, 3, 4 and 5 and as a special resolution in the case of resolution 6.

ORDINARY BUSINESS

1 To receive and adopt the financial report of the Company, together with the directors' report and the auditors report for the year ended 30 June 2009.

2 To re-appoint as a director of the Company Christopher Walter Lambert, who retires by rotation under the Articles of Association of the Company and, being eligible, offers himself for re-election.

3 To re-appoint as a director of the Company Christopher John Schrape, who retires by rotation under the Articles of Association of the Company and, being eligible, offers himself for re-election.

4 To re-appoint BDO LLP as auditors of the Company to act until the conclusion of the next Annual General Meeting and to authorise the Directors to determine their remuneration.

ORDINARY RESOLUTION

5 That in substitution for all existing authorities under the following section to the extent unutilised, the Directors be generally and unconditionally authorised pursuant to Section 551 of the Companies Act 2006 (the "Act") to allot equity securities (within the meaning of section 560 of the Act) up to an aggregate nominal amount of £100,000. The authority referred to in this resolution shall be in substitution for all other existing authorities, and shall expire (unless previously renewed, varied or revoked by the Company in general meeting) at the earlier of the next Annual General Meeting of the Company and the date falling 15 months following the date of the Annual General Meeting being convened by this Notice.  The Company may, at any time prior to the expiry of the authority, make an offer or agreement which would or might require relevant securities to be allotted after the expiry of the authority and the Directors are hereby authorised to allot relevant securities in pursuance of such offer or agreement as if the authority had not expired.

SPECIAL RESOLUTIONS

6 That in substitution for all existing authorities to the extent unutilised, the Directors, pursuant to Section 570 of the Act, be empowered to allot equity securities (within the meaning of Section 560 of the Act) for cash pursuant to the authority conferred by Resolution 5 as if Section 561 of the Act did not apply to any such allotment provided that this power shall be limited to:

(a) the allotment of equity securities where such securities have been offered (whether by way of a rights issue, open offer or otherwise) to the holders of ordinary shares in the capital of the Company in proportion (as nearly as may be) to their holdings of such ordinary shares but subject to such exclusions or other arrangements as the Directors may deem necessary or expedient to deal with equity securities representing fractional entitlements and with legal or practical problems under the laws of, or the requirements of, any regulatory body or any stock exchange in, any territory; and 

(b) the allotment, other than pursuant to (a) above, of equity securities: 

(i)  arising from the exercise of options and warrants outstanding at the date of this resolution; 

(ii)  other than pursuant to (i) above, up to an aggregate nominal value of £75,000, 

and this power shall, unless previously revoked or varied by special resolution of the Company in general meeting, expire at the earlier of the conclusion of the next Annual General Meeting of the Company and the date falling 15 months following the date of the Annual General Meeting being convened by this Notice. The Company may, before such expiry, make offers or agreements which would or might require equity securities to be allotted after such expiry and the Directors are hereby empowered to allot equity securities in pursuance of such offers or agreements as if the power conferred hereby had not expired.

If you are a registered holder of Ordinary Shares in the Company, whether or not you are able to attend the meeting, you may use the enclosed form of proxy to appoint one or more persons to attend and vote on a poll on your behalf. A proxy need not be a member of the Company.

A form of proxy is provided.

This may be sent by facsimile transfer to 01252 719 232 or by mail to:

The Company Secretary

Altona Resources Plc, c/o Share Registrars Limited

Suite E, First Floor, 9 Lion & Lamb Yard

Farnham, 

Surrey GU9 7LL

In either case, the signed proxy must be received no later than 48 hours (excluding any part of a day which is not a working day) before the time of the meeting, or any adjournment thereof.

By Order of the Board Registered office:

Third Floor

Stephen Ronaldson 55 Gower Street

Company Secretary London WC1E 6HQ

20 November 2009

**ENDS**

For further information visit www.altonaenergy.com or please contact:

Christopher Lambert	Altona Chairman	Tel: +44 (0) 20 7024 8391
Christopher Schrape	Altona Managing Director	Tel: +44 (0) 20 7024 8391
Samantha Harrison	Ambrian Partners Limited	Tel: +44 (0) 20 7634 4705
Alexandra Carse	Ambrian Partners Limited	Tel: +44 (0) 20 7634 4705
Paul Youens	St Brides Media & Finance Ltd	Tel: +44 (0) 20 7236 1177
Hugo de Salis	St Brides Media & Finance Ltd	Tel: +44 (0) 20 7236 1177

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Altona Energy