Energy group Altona Resources plc, the UK-listed Australian company which expects to list on the local exchange later this year, has extended an agreement with BP Australia Pty Ltd to develop a project in South Australia.

The pair have extended a non-binding agreement to work together to evaluated development opportunities for Altona's Arckaringa coal-to-liquids and power project in the state to the end of June 2009.

The agreement includes the evaluation of coal-to-liquids developments and market potential for coal-to-liquids fuel products, Altona said in a statement.

Altona earlier this month said it planned to list on the Australian Securities Exchange in the December quarter of this year, subject to market conditions.

Bell Potter Securities Ltd is advising Altona, which is listed on the UK AIM market, on its proposed Australian listing.

Altona's primary focus is the completion of a bankable feasibility study for its wholly owned Arckaringa Project for an integrated 10 million barrel per year coal-to-liquid plant with a 560 megawatt co-generation power facility.