June 26, 2012
CBM Asia Reports that Gas Content at Kutai West CBM Well Averages 5.56 m3/t (178 scf/ton) on As-Received Basis
Second Test Well Confirms Attractive Gas Content at this PSC,
Which Adjoins Commercially Producing BP/ENI CBM Block
VANCOUVER, BRITISH COLUMBIA, June 26, 2012 – CBM Asia Development Corp. (“CBM Asia” or the “Company”) (TSX.V TCF), (US: CBMDF) (FWB: IY2) has been informed by the operator Newton Energy Capital Limited of the preliminary gas content measurements from the second exploration well (CBM-KW-01) at the Kutai West Coalbed Methane Production Sharing Contract (“Kutai West CBM PSC”) block, located in East Kalimantan, Indonesia. CBM Asia holds an 18% working interest in the Kutai West CBM PSC.
Australian gas content contractor GeoGas measured the gas content of 12 coal core samples from the Balikpapan Formation in the CBM-KW-01 well. The gas content averaged 5.56 m3/t (178 scf/ton) on a preliminary, as-received basis (arb), i.e., prior to correction for ash and moisture content. The gas content of two samples exceeded 7 m3/t (224 scf/ton) arb. Previously, CBM Asia reported that approximately 32 meters of net coal was logged in this well.
“This second well confirms that thick coals with attractive coal seam gas contents are present in the Kutai West PSC. The block is located immediately adjacent to commercial CBM production and development taking place at BP/ENI’s Sanga-Sanga PSC,” comments CBM Asia Chairman Scott H. Stevens. “We look forward to receiving the final gas content desorption results for this well from Newton and GeoGas soon.”
ABOUT CBM ASIA DEVELOPMENT CORP.
CBM Asia Development Corp. is a Canadian-based unconventional gas company with significant coalbed methane ("CBM") exploration and development opportunities in Indonesia. The Company holds various participating interests in four production sharing contracts (each a "PSC") for CBM in Indonesia. Indonesia has one of the largest CBM resources in the world with a potential 453 trillion cubic feet in-place, more than double the country's natural gas reserves (Stevens and Hadiyanto, 2004).
Since 2008 a total of 39 CBM PSCs have been granted by the Government of Indonesia, representing exploration commitments of over US$100 million during the next 3 years. In addition to CBM Asia, other companies active in CBM exploration in Indonesia include BP, Dart Energy, ENI, ExxonMobil, Medco, Santos, and TOTAL. BP, ENI, and the Indonesian government have confirmed that commercial CBM production started in March 2011 from the Sanga-Sanga PSC and is being exported from the Bontang LNG facility. The Company trades on the TSX Venture Exchange under the symbol "TCF".www.cbmasia.ca
ON BEHALF OF CBM ASIA DEVELOPMENT CORP.
"Alan T. Charuk"
President & CEO
For investor relations contact: Micro Cap et al at 1 877 642 7622, or firstname.lastname@example.org
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CBM ASIA DEVELOPMENT CORP.
404-815 Hornby Street Vancouver, BC, V6Z 2E6
T.604.684.2340 F.604.684.2474 TF.866.504.4755
This news release contains forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those made in our Canadian continuous disclosure filings available on SEDAR at www.sedar.com including our December 31, 2011 year end annual MD&A dated April 26, 2012 and first quarter 2012 interim MD&A dated May 29, 2012. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.