September 1, 2010 - The ability of Cougar Energy to continue as a going concern is dependent upon it raising new capital and on the State Government lifting the Environmental Protection Order on its Kingaroy UCG project.
Cougar Energy's Preliminary Annual Report released today reveals the company incurred a loss of $4.09 million (more than $1m more than the previous 12 months) and had cash outflows of $4.65 million (more than double from the previous year) during the year ended June 30.
Assets totalled $37.6 million but the report states that in the event Cougar Energy is not permitted to proceed with its Kingaroy project, the value of its Kingaroy assets would be impaired. It has been estimated this writedown could be as much as $26 million.
The company's forecast working capital requirements for the next 12 months exceeds the company's current cash position."This indicates a material uncertainty that may cast doubt over the Company's ability to continue as a going concern, unless additional capital can be raised," the report states.
However Directors believe there is "a reasonable expectation" that they can raise additional funding.
* * * 
The
Kingaroy Concerned Citizens Group has released three protest signs which it is urging South Burnett residents who oppose Underground Coal Gasification to post prominently around town.
The signs,
(right), read "Ban UCG Now", "UCG is Toxic" and "UCG Planned Here". They are available as a set of three for $10. For more information, contact
Gary Tessman on 0428-621-991.
* * *UPDATE:
Late this afternoon Cougar Energy announced that trading in its shares would recommence on the ASX tomorrow (September 2).
The company also released its new share prospectus, details of its ongoing equity financing and the text of a letter to shareholders where it has vigorously defended its environmental record and the safety of its Kingaroy UCG Project.