COUGAR Energy is taking legal advice after joint venture partner...

COUGAR Energy is taking legal advice after joint venture partner Eneabba Gas said an agreement between the two companies had ended.

Cougar, which uses underground coal gasification technology to produce gas from coal seams, said the announcement on Friday from Eneabba came as it received a letter alleging Cougar had repudiated the terms sheet for the deal.

"Cougar Energy does not accept this allegation and is disappointed that Eneabba Gas has taken the steps it did on Friday," Cougar told the stock exchange.

"Cougar Energy is presently taking legal advice and will advise the market of further developments in due course."

The two companies had an agreement announced last June for a joint venture to develop the Sargon coal tenements in Western Australia.

Under the deal Cougar was to have a 50 per cent interest in one of the tenements and an option for further interest in the remaining tenements.

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On Friday Eneabba said it was still committed to utilising underground coal gasification in the Sargon tenements, with a review of the sites and a proposed activation plan in train by March 31.

Cougar has been in the spotlight after its Kingaroy underground coal gasification project in Queensland was suspended in July last year after traces of the carcinogen benzene and the toxic chemical toluene were found in bores at the site.

Cougar has since been striving to convince the state government to allow it to re-start the project.

The Queensland government is due to make a decision on whether to give the project the green light to recommence on January 28.


http://www.theaustralian.com.au/business/mining-energy/cougar-seeks-advice-over-eneabba-deal/story-e6frg9ef-1225993573292


This is why CNX broke the deal with ENB. Not a reliable company IMO.