Cougar Energy Signs MoU for UCG Projects in China and Mongolia

Monday, December 14, 2009

• Establishment of joint company with Direct Invest Pte Ltd of Singapore
• Focus on developing UCG projects in China and Mongolia
• Initial project discussions commenced with Chinese company
• UCG technology is well suited to the region's coal resources
• Significant growth upside as the Chinese Central Government looks to reduce CO2 emissions from its coal mining industry

Cougar Energy Limited has executed a Memorandum of Understanding (MOU) with Direct Invest Pte Ltd, the Singapore domiciled subsidiary of the Direct Invest Group, to establish Cougar Direct Invest China Limited (CDIC) for the purpose of developing Underground Coal Gasification (UCG) projects in the People's Republic of China and in Mongolia.

CDIC will be 60% owned by Cougar Energy and 40% owned by Direct Invest Pte Ltd with equal board representation and voting rights.

The MOU envisages the establishment of special purpose companies for each project identified for development, with the funding to be sourced through individual equity raisings and bank finance.

Both China and Mongolia possess vast coal resources and CDIC will be seeking to build business relationships with the major mining and exploration companies in both countries.

Direct Invest is chaired by Michael Dobbs-Higginson, who has had a distinguished career as an investment banker and an entrepreneur in Europe and Asia, as well as being a non-executive chairman, director and/or advisor to various public and private companies particularly in Asia. For a period of six years he was Chairman of Merrill Lynch Asia Pacific and a member of Merrill Lynch New York's Global Capital Committee. Prior to that, he held similar positions with Credit Suisse First Boston. He is based in Singapore and is involved with a number of international companies in their investments in the Asia Pacific region.

Mr Dobbs-Higginson is directly involved in the identification of projects for CDIC, and preliminary discussions with the first Chinese company have been initiated by him. This company's core business is in clean energy and environmental protection applications. It operates in 20 provinces in China, and provides a range of services to the major coal mining companies in those provinces.

Dr Len Walker, Managing Director of Cougar Energy, commented:
'The Chinese authorities have signalled their intention to tackle the challenge of reducing emissions from their coal mining operations. We believe that UCG technology is at the forefront of producing both cleaner and cheaper energy from such resources in long-term sustainable operations. There
are many prospective sites in both China and Mongolia which are suitable for UCG development.'

'CDIC has been founded to combine the complimentary talents of the shareholders, and to ensure that projects in the region are developed using a sound long-term strategy. We bring the technical evaluation and project design and development skills and combine this with Direct Invest's ability to evaluate and structure projects and its extensive network of contacts in China and Mongolia'.

'The development of projects via CDIC represents a highly prospective and exciting growth opportunity for Cougar Energy as we continue to expand our coal resources and operating entities across the globe utilising the world's leading commercial UCG technology,' said Dr Walker.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More

Related News

Join 70,000 other oil and gas professionals

Network with others, build your profile, and receive the latest oil and gas news in your inbox. It's free!

Your details are never shared or sold. We hate spam too.

» More Jobs       » Upload a free Job       » Upload your CV

More Europe Jobs

More Global Jobs

Opinion & Commentary

  • Eight pieces of our oil price predicament
    A person might think that oil prices would be fairly stable. Prices would set themselves at a level that would be high enough for the majority of producers, so ...
  • Give us a break...
    I see that Oil & gas UK has been talking again about the need for George Osborne to ‘put his money where his mouth is’ (I paraphrase!) and change the fiscal terms operati ...
  • Why it's different this time
    Is this downturn in oil prices going to be different for investors? I think it might. In fact, I think North American energy companies have a good chance of withstanding th ...

» More Opinion & Commentary         » Write for us             RSS RSS

Oil & Gas Training

Mastering 4D Seismic
Ian Jack, London, 06 Nov 2014

Petroleum Geology of West Africa
Duncan Macgregor, London, 12 Nov 2014

Introduction to Contingency Planning: The value to oil and gas companies in high-risk areas
Mark Theobald, London, 18 Nov 2014

All Upcoming Training

Opinions & Commentary

Oil price, Schlumberger, Petrofac, Lamprell, Pantheon, Aminex and finally...

by Malcolm Graham-Wood

Read More »