CXY 0.00% 0.3¢ cougar energy limited

Ann: Successful completion of air linkage testing, page-9

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    re: Ann: Successful completion of air linkage... dan1... I am no expert on UCG!

    But from my understanding is the announcement means that they have successfully drilled the wells required for the UCG reactor and that they have tested the seam and the wells etc to see if when they pump air down the well, that it flows through the coal seam and flows back up through the desired production well.

    This is a very important step. I am guessing it also means that they have tested to see whether the pressure that they can pump down into the coal seam will be suitable to not cause damage to the underground water supplies. This off the top of my head is done by using a suitable air pressure, if the air pressure is too high then it will blow out of the water in the coal seam... and that isn't good! So it appears that they have "ticked this box". Note that this is the main area of environmental concern, and if this is successful then the whole project should get the green light from the QLD government. Of course the EPA will want probably months of data on monitoring bores once the UCG reactor is ignited before any approvals for full production is given, but this is a VERY significant step.

    I could be wrong but I think the next major step in the process is ignition of the UCG reactor which is intended for early 2010 I think. Might be a few minor milestones in between like building gas processing plant etc.

    Thats the way I see it anyway.

    So major step in the process.... with Wandoan JORC due this month it could be finally time for the Cougar to leap ahead once more!
 
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