Thar Coal Field, Pakistan - Power ProjectCougar Energy has an...

Thar Coal Field, Pakistan - Power Project

Cougar Energy has an interest in developing a UCG power project in Pakistan through its 47.8% owned subsidiary Cougar Energy (UK) Ltd. The UK Company (CUK) applied for a lease in the extensive Thar Coal Field in the east of Sindh Province, and in November 2007 was notified of an Offer of Grant of an Exploration Licence over 47.3 sq. km. within Block III defined by previous drilling.

The Geological Survey of Pakistan has drilled 27 holes in this area at approximately 1km spacing, which were cored and geophysically logged across the zone containing the coal seams. Within this area the coal seams vary from 8m to 23m thick, at depths varying from 115m to 205m, and hence contain a very large resource to which UCG technology may apply.

With elections in Pakistan earlier this year, and the formation of the new Thar Coal and Energy Board to oversee coal allocations and development in the region, the Offer of Grant to CUK is being held by the Government as part of an overall review of the Thar development. The Company remains confident that the Grant will eventuate and that the Government understands the significant role that UCG may play in the utilisation of the huge Thar coal deposit. The focus of Cougar's Thar UCG project on power generation reflects the need for Pakistan to increase its generating output, with severe load shedding being necessary to match demand and supply.

The resource target is over 1 billion tonnes inside the lease boundary.