bp and lawrence livermore ucg, page-9

Ptolemy,

I think you better take another look at the list of potential projects that CXY has access to through it's already negotiated farm-in agreements. The first of these that is well underway is Kingaroy, for which Cougar managed to raise $2.1m @7c/share to fund the site characterisation program. This in itself should give you a pretty good idea of the likelihood of success of this project.

You speak as if there is only room for BP in the UCG environment globally. That would be the same as saying all small iron ore plays might as well pack up and shut shop because Rio Tinto and BHP have the market covered.

BP's agreement with Lawrence Livermore Labs is clear from this excerpt from the article referred to: "The technical objective based on BP's in-house data is for LLNL to provide BP with expertise, model results, new capabilities and insights into the operation and environmental management of UCG." They are starting to develop a knowledge base on UCG - a long way behind Dr Len Walker and Cougar Energy which is likely to have a successful burn before the middle of next year.

And one final point you are clearly overlooking - what do you think individual succesful UCG projects are likely to do for BP's share price in comparison to what they will do to Cougar's share price?

If you still think you'll make more money out of investing in BP than CXY, or that CXY will not make it just because BP is starting to look at playing in the same space then go and buy BP.

But don't start advising people to sell their Cougar shares as a result of your own ill-drawn conclusions.