COUGAR ENERGY LIMITED - ASX: CXY

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Description

Cougar is making New Power for Australia. Not only can Cougar make use of Australia's natural abundant coal reserves, but it can do so while greatly reducing the greenhouse gases emmitted from traditional coal fired power stations. With its own huge coal resources, and working jointly with other holders of massive coal deposits, Cougar specialises in underground coal gasification(UCG) and electricity generation. It has the team, vision and expertise to move forward and create UCG power stations that will not only underpin Australia and the world's need for power, but help reduce greenhouse gases and move the power industry towards a future where UCG power stations are wide spread internationally.

Kingaroy, Queensland

In June 2008 Cougar Energy announced a JORC compliant resource of 73 million tonnes of coal (indicated 28 million and inferred 45 million). The coal is contained in two seams – the Kunioon and Goodger seams. The depth of the two seams ranges from 130 – 300 metres with thicknesses of 5 – 17 metres and 2-13 metres respectively. Both seams are well suited to the UCG technology. The current resources support a project life of minimum 30 years, while further drilling will be undertaken in 2009 -10 to the north of the tenement to determine the extensions to the existing identified seams.

Key milestones targeted for 2009 -2010
+ award construction contract and commence building works
+ connect power to site
+ ignition of the UCG process
+ testing and evaluation of gas production and plant performance
+ bank feasibility study (leading into funding of the project)

Wandoan, Queensland

Cougar Energy’s tenement interests in Queensland’s Surat Basin represent the next major development step in the Company’s growth profile. Cougar Energy maintains interests in a number of leases in the coal resource rich Surat Basin in Queensland:

+ in its own name, EPC 1118 near Wandoan , and
+ in association with Cockatoo Coal Limited (Cougar Energy has the rights to coal resources at depths below 150 metres.)

Cougar Energy’s immediate focus is on EPC 1118 and the adjacent lease EPC 1134 (where Cockatoo Coal announced encouraging drilling results on 20 July 2009). The Company announced a new JORC Compliant resource on EPC 1118 on 18 August 2009: 341 million tonnes (34 million indicated and 307 million inferred).

This resource exceeded the Company’s expectations and now further confirms the reliable continuation of the Macalister Seam occurring in the Walloon Coal Measures upon which EPC 1118 is situated. The size of the resource allows Cougar Energy enhanced flexibility in planning commercial development in the area, including replicating the Kingaroy development.

South Gippsland, Victoria

Cougar Energy’s interests in Victoria have the potential for large scale low emissions projects utilising brown coal. In September 2007, Cougar Energy entered into a Memorandum of Understanding (MOU) with Ignite Energy Resources Ltd (formerly Victoria Coal Resources Pty Ltd) in relation to the potential for applying UCG technology to the brown coal deposits known to exist within its Exploration Licence (EL) 4416. The Company has reviewed the data on the licence and identified areas (Designated Areas) where coal seams have the potential for exploitation using UCG technology.

Key milestones targeted for 2009 -2010
+ sign joint venture with Ignite Energy Resources
+ commence drilling program at target sites

Cougar Energy (UK) Limited

Cougar Energy (UK) Limited (CUK) is 47.8% owned by Cougar Energy Limited.

CUK applied for a lease in the extensive Thar Coal Field in the east of Sindh Province and in November 2007 was notified of an Offer of Grant of an Exploration Licence over 47.3 square kilometres within Block III defined by previous drilling. The company expects the Grant of Offer to be made to CUK in 3Q 2009.

The Geological Survey of Pakistan has drilled 27 holes in this area at approximately one kilometre spacing, which were cored and geophysically logged across the zone containing the coal seams. Within this area the coal seams vary from 8 metres to 23 metres thick, at depths varying from 115 metres to 205 metres, and hence contain a very large resource to which UCG technology may apply.

Pakistan has a great need to increase its generating output to meet escalating demand. At present load shedding is necessary to match demand and supply, with supply to homes in Karachi being cut for more than six hours per day. As a result of the shortage of supply, prices received by power generators in Pakistan are more than double average Australian prices.

There is clearly significant political uncertainty which may affect the financing of infrastructure development in Pakistan. CUK is already taking steps to ensure that its developmental and financial exposure will be minimized in the event that the relevant licence is granted.

In March 2008, CUK signed a Memorandum of Understanding with Essar Exploration and Production Limited (EEPL). EEPL is a member of the Essar Group of Companies, one of India’s largest companies with interests in India and overseas in steel, shipping, power, oil and gas, telecom and construction businesses. The MOU specifically provided for both companies to jointly evaluate and develop UCG projects within coal concessions held by a number of Public Sector Undertakings in India and with other companies within and outside India as may be mutually agreed.

It is well understood that India has vast unused coal resources, much of which may be amenable to application of the UCG process, and the country also suffers from a shortage of power nationally. As a result of this view, CUK is also discussing potential application of the technology with a number of other Indian companies.

Mine For

underground coal gassification, coal, ucg

Location of operation(s)

Pakistan, Queensland, Victoria, India

Address

Suite 1002, 530 Little Collins St
MELBOURNE, VIC, AUSTRALIA

Phone

+61 3 9909 7200

Email

Website

http://www.cougarenergy.com.au/

Last Updated

29/04/2010