The scope of the agreement will also include the project design for Altona’s 30,000BPD clean energy coal to liquids project.
The two companies will look to determine a drilling contractor for an upcoming test drilling programme at Arckaringa which is expected to begin in January 2013.
Results from drilling will be used to update the existing Mine Schedule draft and hydro-geological model and will lay the ground for Groundwater Management Plan and Mining & Rehabilitation Plan for review with the South Australian authorities.
Parsons Brinckerhoff regional director for South Australia David Boyd remarked, "The project has the potential to make a major contribution to the growing reputation of this State as a leading place for investment in this market sector."
Altona owns 49% stake in three exploration licenses in the Permian Arckaringa Basin in South Australia.
