Oracle Coalfields says Sindh Thar coalfield definitive feasibility study, bankable feasibility study progressing well

London, April 19, 2011 (PPI): Oracle Coalfields PLC says definitive feasibility study DFS and bankable feasibility study BFS on its Block VI Thar Coalfield project in Pakistan's Sindh Province are progressing well.

The work program for developing coal deposit is proceeding with target of completing DFS and BFS in year 2011. Company appointed independent international consultants with experience in developing coal mine operations of this nature to oversee drilling and help complete Thar feasibility studies. It is in process of de-listing from PLUS and for its shares to start trading on AIM.

The continued rises in world energy prices have strengthened economic rationale for its project as cost of alternative imported supplies of oil and coal increase, company said on Tuesday. Oracle last week said it raised £3 million before expenses in a placing ahead of its AIM listing, £1 million more than it envisaged when it announced plan to raise additional funds at end of March.

UK developer of a 1.4 billion ton coal resource in Sindh Province, said in mid-February that it plans to move its listing to AIM from PLUS early in second quarter of 2011. At end of March it said it would use opportunity to raise £2 million for working capital.

Wardell Armstrong International WAI was appointed to prepare Environmental & Social Impact Statement which is now well advanced. In addition, company appointed SRK Consulting (UK) Ltd to carry out independent review of technical work on feasibility studies carried out by Oracle’s main technical consultant, Dargo Associates Ltd. SRK will prepare a definitive feasibility study to bankable standard. Aquaterra, an international water and environmental company is working with SRK on hydro geological assessment of the project.

At Thar located 380km east of Karachi in Sindh Province, Oracle plans to excavate lignite coal, which is brown in colour and has lower calorific value than thermal coal that goes for export from places such as Indonesia. Output from Thar will be used for power generation and specifically for new plants being developed by Karachi Electric Supply Company KESC. The two have a MoU, which it is hoped will transform into a supply agreement once both sides have concluded feasibility studies.