July 30, 2010 -
Cougar Energy has replied to a series of questions posed to the company by the Australian Stock Exchange in the wake of its
$1.23 million share issue in mid-July this year and the water contamination scare that followed at its Kingaroy UCG plant shortly afterwards.
The ASX quizzed Cougar about exactly when it first became aware that benzene and toluene had been detected in groundwater; when it first learned of the DERM order; and why it didn't release the information to the market at an earlier time.
In its reply, Cougar states that it didn't have enough information to determine whether the recorded levels were related to the company's activities as hydrocarbons can derive from a number of sources.
Cougar also said it didn't consider that the test results indicated that serious or material environmental harm had been or was being caused.
"If DERM considered that the Test Results indicated a threat to the environment, the company would have expected DERM to contact it immediately," the letter to the ASX states.
- Cougar Energy has released the full text of its letter to the ASX (189kb PDF)