Cougar Energy said that it has reached an agreement with the Queensland government over the company's underground coal gasification project in the South Burnett region of south east Queensland.

The company's UCG plant at Kingaroy remains shut despite government tests clearing the project of contaminating bores.

The state government said that Cougar also has not provided all the information required for an environmental assessment of the project.

However, Cougar Energy managing director Dr Len Walker said that talks held with government officials on Friday have resolved the issue.

He added that "We had proposed to install four new monitoring bores within the pilot plant area and we will be going ahead with those as quickly as we can. The department was requesting more information in relation to the installation of the new bores and in particular measures we'd taken of mitigating any risk of the same problem occurring as it occurred with our first production wells."

(Sourced from ABC Online)