considering investing

Hi all,

I was in this share early in the year and jumped out during the decline. Starting to see CXY show signs of life and considering reinvesting, however must admit I'm struggling with the decision.

Here is a snippet from an article Oct 18th on the Government fighting the claims (link at bottom of post also) which is obviously biased towards the Government.

My questions for you (dex would be great to get a response if you have time), are more around the medium term (1 year) outlook for CXY and UCG (let's assume it's not tied up in court for years):
a) if the court case is won.
b) if the court case is lost.

Cheers,
Lok

Here is a snippet from the article that made me pull my bid out of CXY this morning...

'Right thing'
But the South Burnett Regional Council says an energy company hid flaws in its proposed UCG project at Kingaroy from the State Government.

Mayor David Carter says the company also did a poor job consulting with the community.

"Basically when the contamination happened, [Cougar Energy] didn't let DERM know that for a number of days and that's just unacceptable," he said.

"Once they found that there was contamination, it was their own testing that found that they had contaminated the ground water.

"They should have done something about that in a much quicker means, and I think by not telling the community that's not how this thing should happen."

Councillor Carter says he doubts Cougar Energy's decision to sue the State Government will be successful and the State Government has done the right thing.

"It's just unacceptable to myself and the farming community that's around where the Cougar Energy plant is," he said.

"It's just unacceptable that they've basically put carcinogens into the local ground water supply there.

"I just think that's just unacceptable for that project to continue, when particularly we don't know where that water runs to."

Meanwhile, a residents group that fought against the gas project says it is not worried about the company's lawsuit against the State Government.

Kingaroy Concerned Citizens Group spokesman Gary Tessman says he hopes the case will not succeed because it could potentially see the project reopened.

"If it started up again and if we do get contamination, there could be really high amounts of losses as far as agricultural land and productivity in this area," he said.

Mr Tessman says the project threatened underground water supplies.

"I fully commend the actions of what the State Government did and I find that they did the right thing," he said.

"Certainly I hope that in the court case they find that way, because it's very important we keep this thing shut down."

Law professor Graeme Orr says Cougar Energy's move to name and sue public servants over its closed Kingaroy power plant is unusual.

He says says the company is facing an uphill battle.

"To get tort damages they have to show that the Government owe them a duty of care," he said.

"But when you are talking about things like a government environment department and environmental law, the primary duty of care of the government is to us as the public, not to any particular company that may or may not be polluting the environment."


http://www.abc.net.au/news/2011-10-18/government-vows-to-defend-cougar-energy-legal-action/3576412