August 07, 2012
CBM Asia Reports Final Gas Content Analysis for the CBM-KW-01 Exploration Well at the Kutai West Coalbed Methane PSC, Indonesia
Gas Content Averaging 275 ft3/ton is Over Five Times
Greater than at USA Commercial Analog Field
VANCOUVER, BRITISH COLUMBIA, August 7, 2012 – CBM Asia Development Corp. (“CBM Asia” or the “Company”) (TSX.V TCF), (US: CBMDF) (FWB: IY2) reports high final gas content values with excellent gas quality have 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 gas content of seventeen (17) coal samples that were cored from the CBM-KW-01 exploration well. The final gas content ranged from 155 to 359 ft3/ton (average 275 ft3/ton), reported on an industry-standard “dry, ash-free” basis. The concentration of methane and other hydrocarbon gases averaged over 97% with low CO2.
“Gas content averaging 275 ft3/ton is much better than expected and some of the highest measured to date in Indonesia,” noted CBM Asia Chairman Scott H. Stevens. “By comparison, it is over five times higher than in the Powder River Basin, Wyoming, USA, which the US Geological Survey considers to be Indonesia’s closest commercial analog and the world’s second most productive CBM field at 1.4 Bcfd. High gas content is an excellent indicator for the upcoming production pilot program at Kutai West.”
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.