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Cougar Energy Limited (ASX: CXY) provides the following market update. The Company’s Board of Directors continues to conduct a review of Cougar Energy’s operational and financial requirements as a result of the Queensland Government’s decision to delay the approval of re-ignition of the Kingaroy pilot plant until an environmental evaluation is completed and assessed.
The Cougar Energy review includes on-going discussions with financiers and investors as to funding alternatives for the Company’s projects. As a result of the delay and uncertainty as to when its Kingaroy operations will recommence, Cougar Energy has taken steps to consolidate its financial position. In line with this process, it has today regrettably made the decision to terminate the employment of the majority of staff at the Kingaroy project and in the Company’s Brisbane and Melbourne offices. Various arrangements with contractors and local services providers have also been discontinued for the time being. Managing Director Dr Len Walker said that it was a difficult decision to give notice to valued and talented members of the Cougar Energy team. “I am grateful to every one of our employees for their dedication and commitment to building our groundbreaking UCG projects in Australia and I wish them every success in the future,” he said. The future of the Kingaroy project will remain under constant review until the environmental evaluation process has been completed. A core number of staff will be retained to continue progressing the development of Cougar Energy’s projects in Australia and overseas. |
