July 31, 2012
CBM Asia Reports Excellent Gas Quality And Final Exploration Well at the Kutai West Coalbed Methane PSC, Indonesia
High-Methane Coalbed Gas Confirmed with Very Low CO2
Suitable for Pipeline or LNG Export
VANCOUVER, BRITISH COLUMBIA, July 31, 2012 – CBM Asia Development Corp. (“CBM Asia” or the “Company”) (TSX.V TCF), (US: CBMDF) (FWB: IY2) reports excellent gas quality has been measured at the Kutai West Coalbed Methane Production Sharing Contract (“Kutai West CBM PSC”), located in East Kalimantan, Indonesia. Newton Energy Capital Limited operates the Kutai West CBM PSC, in which CBM Asia holds an 18% working interest.
Contractor PT GeoServices measured the composition of coalbed methane gas desorbed from eleven (11) coal samples cored from a depth of 317 to 842 meters in the CBM-KW-01 exploration well. All gas samples tested high in methane and very low in carbon dioxide. The methane content averaged 91.1%, while the CO2 content averaged 0.14%. Combustible ethane and propane also were present (average 0.5% each), while inert gas such as nitrogen accounted for the balance. The gas compositional testing indicates that the CBM gas in the CBM-KW-01 well is of high quality, suitable for transport via pipeline or conversion to LNG.
CBM Asia also reports that the fourth and final well, CBM-KW-03, reached a target depth at 1,000 meters. The exploration well, designed to delineate the coal extent at the south-eastern edge of the syncline in the C ‘sweet spot’ encountered 11.5 meters of net coal as expected.
With the aerial extent, coal thickness, gas content and gas quality of the C sweet spot confirmed the Kutai West partners are now planning development activities for the next exploration phase which will likely include a production pilot. The Kutai West block is adjacent to the Sanga-Sanga PSC, where BP, ENI, and partners (VICO) have been commercially producing coalbed methane and exporting it as LNG to north Asia since March 2011.
“With gas content levels exceeding 200 scf/ton and net coal thickness within sweet spot C of 25-32 meters we are excited to be moving toward the second exploration phase and begin the planning process for the production pilot program,” comments CBM Asia President and CEO Alan T. Charuk. “BP’s success in delivering CBM gas to the Bontang LNG and securing local gas sales contracts in the range of USD7.50/Mcf underscores the potential of the Kutai West PSC.”
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 annual MD&A dated April 27, 2011. 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.