News: Cougar shares jump on Asia strategy

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Shares in Cougar Energy Limited (ASX:CXY) jumped more than 18 per cent on the last trading day after the underground coal gasification company detailed its Asian strategy at its annual general meeting.

Managing director, Len Walker, told shareholders the company is now looking to Asia for new project opportunities not only “chasing the Queensland government for money”.

The comments came after Cougar last week announced it is suing the Queensland Government for more than $34 million in damages.

The legal action relates to the enforced shut down of Cougar’s $550 million underground coal gasification project at Kingaroy after toxic cancer-causing chemicals were identified in a groundwater monitoring bore.

Dr Walker says Cougar is now negotiating with officials in China, Mongolia and Indonesia to access coal deposits suitable for development.

Shares in Cougar Energy closed 18.75 per cent higher on Friday at $0.019.

Cougar Energy booked a net loss of $35.27 million in the 2011 financial year