JatOil’s initial goal was to develop a biofuel business through the production of crude jatropha oil from plantations in Indonesia.

But coal mining is a serious business in the country and, for little JatOil, the temptation of quick cashflow was too strong.

In September JatOil struck a binding memorandum of understanding agreement to acquire Blackrock Resources.

Blackrock has binding agreements to secure a large prospective coal project in Kalimantan region, and another project which is near production.

Jatoil said the two projects total more than 40 million tonnes of JORC-compliant coal resources.

Domestic and export thermal coal is expected, with “possibly some coking-quality coal”

“Blackrock Coal builds on Jatoil’s experience in Indonesia and can provide significant revenue in 6 to 9 months,” the biofuel junior said in an investor presentation last week.

The company expects significant jatropha revenues in more than 2 years.

A shareholder meeting on the Blackrock transaction passed all resolutions on Thursday and JatOil shares were put in a trading halt on Friday, with announcements expected this week.

JatOil also struck a conditional deal to acquire two coal exploration permits, and two coal permit applications in Queensland from private company Spinifex Rural Management last week.

If the binding letter of intent is successfully executed, JatOil will pick up more than 550 square kilometres of exploration ground in the Galilee Basin near tenements held by Adani, Gina Rinehart’s Hancock Coal and Clive Palmer’s Waratah Coal.

Permit EPC 2101 contains 100 sub-blocks between two of Linc Energy’s tenements in the Richmond area of the north western Galilee basin.

JatOil said EPC 1988 covers 18 sub-blocks “between” tenements of Waratah and Hancock Coal.

Permit application EPCA 2166 is a small slice of six sub-blocks north of the tenement Linc sold to Adani last year.

EPCA2020 is west of Waratah tenements and consists of 44 sub-blocks.

JatOil must complete the Blackrock acquisition as part of the conditions for the Spinifex deal, which is also subject to shareholder and regulatory approvals.

The Spinifex deal was struck for $A200,000 cash plus five million ordinary JatOil shares.

Exclusive negotiations between the two companies also involve Spinifex tenements in the Surat and Bowen basin, JatOil said.

“Australian investors have responded positively to our announced move into coal,” JatOil CEO Phil Hodgson said.

“Now, we are taking an opportunity to make Jatoil even more relevant to local investors through the acquisition of valuable Australian coal tenements in the Galilee Basin.”

Despite the recent achievement of 200 tonnes of crude jatropha oil production in Central Java, Hodgson accepts the company’s new coal destiny.

“We need to boost shareholder value and the coal interests are the right fit for us right now to deliver that.”

JatOil shares last closed at 5.9c and have not yet traded this morning.