Proactive Investor's  Instablog

Proactive Investor
Send Message
Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
My company:
My blog:
  • Cougar Energy Ready To Spring Into UCG In Asia In 2013 0 comments
    Jan 9, 2013 8:14 PM

    While Cougar Energy's (ASX: CXY) Underground Coal Gasification (UCG) efforts are gaining ground in Asia, it is full steam ahead in 2013 towards unlocking the value of its conventional coal business.

    Under the guidance of new CEO and Managing Director Rob Neill, Cougar Energy is poised to implement its two-pronged strategy this year with further development of its Australian coal assets in Queensland's Bowen and Surat Basins, while at the same time progressing its key prospective UCG projects in Indonesia and Mongolia.

    Kandoman Resources

    Cougar is seeking to unlock the value of its Wandoan and Mackenzie coal assets in Queensland, Australia that have a 360 million tonne JORC compliant thermal coal resource in the Surat Basin and a PCI coal asset with an exploration target of between 120 million and 170 million tonnes in the Bowen Basin respectively.

    To that end, it had formed Kandoman Resources as a separate, wholly-owned subsidiary company to secure funding to build value in the assets and progress their development to the pre-feasibility stage.

    Once capitalised, Kandoman Resources will also evaluate opportunistic acquisitions to further build its coal asset base with a view to a possible spin off to realise value for shareholders.

    This includes assessing a range of potential investors and various investment opportunities that came to Cougar's attention while pursuing coal assets with UCG potential in the Asian region.

    "Amongst the first actions that Kandoman Resources will undertake once funding is secured will be an initial drilling program to establish a JORC resource at its Mackenzie Project and conduct coal testing to confirm the PCI/Coking properties and coal quality," Neill said.

    Underground Coal Gasification

    As previously flagged, one of the key planks that Cougar has set this year for its Asian Business Strategy is to establish its first commercial project in Indonesia, possibly under its agreement with PT MedcoEnergi Mining.

    This aims to develop a 30 megawatt power plant using UCG gas feedstock.

    UCG meets the major objectives of the Indonesian Government's coal resource upgrading, which also includes the development of stranded coal assets.

    In addition, the company seeks to continue its partnering initiatives in Mongolia, where recently it signed off on a Memorandum of Understanding with Mongolia-focused Hulaan Coal Corporation to assess its coal assets for UCG development potential.


    Cougar Energy is expected to have a busy year ahead as it moves to unlock intrinsic value in its coal assets and spearheading a push into Asian UCG project development.

    This provides the opportunity for enhanced value creation over the short term that could take Cougar beyond its current market capitalisation of A$7.6 million.

    Leveraging relationships with resources and energy aligned companies in the region should open up opportunities for value enhancement across the coal assets and UCG development.

    Key catalysts include the defining of a JORC Resource at their Mackenzie project and the development of a commercial UCG project with PT MedcoEnergi Mining in Indonesia.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong/China.

Back To Proactive Investor's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.