Ergo Exergy - UCG

December 02, 2008

Cougar Energy Undertakes Site Characterisation Drilling at Kingaroy, Queensland, Australia

Cougar Energy Ltd. is currently undergoing a program of Site Characterisation at its flagship project in Kingaroy, Queensland. The program is focused on obtaining geological, geotechnical and hydrogeological data for design of the pilot plant and its eventual expansion into a commercial sized εUCG™ facility. Drilling of further exploration holes including core recovery has already commenced and confirms the existence of two significant coal seams at the proposed pilot site. A laboratory testing program on selected coal core samples has also been initiated. The installation of monitoring wells and down-hole instruments as well as a variety of in-situ testing is being undertaken. Extensive site characterisation provides for specific design of UCG operations and is an integral component of Ergo Exergy’s εUCG™ technology. The characterisation will be followed by design, construction and commissioning of the underground gasifier and surface facilities, which is expected to commence in early 2010.

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