Having achieved successful ignition using air injection, Cougar Energy staff and technology partners (Ergo Exergy Technologies Inc., led by Dr Michael Blinderman, currently on site, earlier post) will ramp the gasification process up over the coming weeks, prior to the undertaking of a series of trials to test both underground and surface operations under a range of conditions.

Data will be collected over a minimum period of six months for inclusion in the pre-feasibility study currently being prepared by Cougar staff, and for the bank feasibility study which will follow.

The Company is investigating the economics of utilizing small scale plant to take gas from the project in this pre-production phase to generate power to run the site. In addition, an assessment is being made of the economic returns of various power production scenarios for the 200 MW Stage 1, with the advantage of generating cash flows earlier than previously planned.

This ignition represents the second successful initiation of a UCG project in Australia by Dr Len Walker, Managing Director & CEO of Cougar Energy and Dr Michael Blinderman of Ergo ExergyTechnologies, following on from the pre-production burn at Chinchilla in Queensland from 1999-2002.