QLD:Cougar Energy has hopes for test bore

AAP General News (Australia)
12-14-2010
QLD:Cougar Energy has hopes for test bore

BRISBANE, Dec 14 AAP - Five months after its test well near Kingaroy was closed, Cougar
Energy is hopeful new water tests will speed its re-opening.

The Queensland government suspended Cougar Energy's pilot underground coal gasification
(UCG) project in mid-July after underground water at the site and a neighbouring property
was found to be contaminated with benzene and toluene.

Cougar on Tuesday said new results showed a single test indicated a level of 1 part
per billion of benzene.

"No benzene or toluene was detected in any other monitoring bores," the company said
in a statement.

"It is important to note that this finding does not present any danger to local landholder
water supplies and does not exceed the Australian Drinking Water Guideline," the company
said.

"Cougar Energy continues to co-operate and work with the Queensland government and
DERM (Department of Environment and Resource Management) to enable the re-commencement
of the Kingaroy trial project at the earliest possible time."

In a statement to the ASX on Monday, Cougar said it had submitted the final six environmental
reports required by the government last Friday.

It said the reports were the culmination of extensive work over the past four months
and water testing since November from new monitoring bores close to the pilot plant had
shown no sign of the chemicals.

The Queensland Department of Environment and Resource Management will advise by 17
January 2011 whether it will accept the company's environmental reports.

AAP stg/msk

KEYWORD: COUGAR

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