Cougar signs up for Victorian UCG JV

Brisbane (Energy Publishing) - Queensland underground coal gasification (UCG) company Cougar Energy has executed a terms sheet with Ignite Energy Resources (IER) for a farm-in joint venture to investigate an UCG project on an IER tenement in the Gippsland region of Victoria.

The companies are preparing a formal joint venture agreement in which each will have a 50% interest in the project covering an area of about 400sqkm of EL4416. The tenement hosts a lignite deposit.

After signing the JV agreement, Cougar will immediately begin a $1M initial exploration drilling and associated work program.

Further contributions to the development of the project will be on a 50/50 basis.