trading halt, page-16

Factfinder

In reply to your post and an earlier comment of yours ... "My guess is that we are going to be dazzled by the size and source of this equity raising" ... I'm umming and ahhing.

I guess now that they are in a trading halt that will only be released with news of the funding deal, I can post pretty much anything that was on my mind prior to the market opening this morning. Fwiw, I was going to stump up for some more options for the first time in ages.

In point form ...

# Len has said at previous meetings that the trial burn wouldn't commence until there was funding in place to see project development beyond the trial burn.

# Hopefully this means that the announcement will cover funding to deliver Kingaroy 40MW which previous guidance said would cost $55mill for a 60/40 debt/equity balance.

# Allowing for $9mill to be raised from exercised options by Dec 08, the raising would therefore be for $18.4mill (but say $20 mill), which at hopefully not less than 20c/share creates 92mill (but say 100mill) more shares.

# My wildest dream would be that the funding source would be a deep pocketed visionary and/or market making company and that the funding is staged, subject to Cougar hitting technical/project milestones ... possibly by a series of convertible notes with increasing coupon value and possibly going beyond Kingaroy 40MW.

# If the potential scale of the ucg power generation business is anything like I postulated in some posts over the weekend, then funding Cougar should appeal to many large energy concerns or diversified groups that like to dominate the markets in which they choose to operate (I can think of some that fit this description) ... after all, the model that I think Cougar are chasing could have them producing and selling syngas to fuel power generation projects around the globe. Within a decade I could see it plausible for Cougar to be selling 500+PJ of gas per year to a diversified portfolio of long dated projects.

# My worst nightmare would be for this halt to be assoociated with interim funding in the absence of a long term funding arrangement ... but the sp sure hasnt behaved over the past few weeks like this might be the case ... and with LNC's ucg publicity machine including the PWC report, I would have felt that CXY was on the right side of the bargaining table for ucg funding in an environment of conventional energy woes.

Sigh, it'l be a long few days ...

Dex