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Cougar Energy has faced a lot of controversy over the past few months due to a contamination scare at their QLD based facility, which oddly enough was proven to be false. The controversy caused a fright, and despite the clearance of any wrong doing, an odour of wrong doing has remained over the company every since.

One thing I have said to the forum during the recent controversy, was that company needed to move their operations out of QLD. There has been a political agenda against underground coal gasification (UCG) in that state for quite some time. Perhaps the large coal seam gas presence within the state has felt threatened, and has been motivated to tarnish the reputation of a competing technology. I wouldn?t know personally but that sort of speculation could have some truth in it.

For Cougar Energy to see any chance of progressing, they would need to take their efforts in developing their UCG technology elsewhere. Yesterday, the company announced the signing of an agreement to develop their technology in China in a JV with Inner Mongolia DeTailong Investment Energy Ltd (DeTailong). The announcement also stated that discussions were ongoing with another Chinese company for another proposed joint venture.

This news was well received by the market yesterday. The stock price opened at 1.6c and rallied to a high of 2.5c before closing at 2.2c. A resistance level at 2.3c was identified at the time, and the close at 2.2c meant that it was tested and failed.

This morning, Cougar Energy opened at 2.3c and rallied. The resistance level was broken, and the above chart shows a solid break higher which was also backed up by a massive surge in trading volume. Over 500m shares changed hands today so clearly somebody thinks their technology is worth a bit, which is a bit funny when you think of the reaction from QLD. Maybe the Chinese are a bit smarter than some people here in Australia.

Cougar Energy closed just off the day?s high of 4.3c today, ending at 4.2c, for a very impressive 90% gain for the day.

We could still see much higher prices being made over the coming days, but I am reluctant to chase this. Significant gains have been made already, and the time to buy was yesterday and this morning. I tweeted about this stock yesterday, and again today during early trading this morning.