April 27, 2012
CBM Asia Reports Second Exploration Well Encounters 32 Meters of Net Coal At Kutai West PSC
VANCOUVER, BRITISH COLUMBIA, April 27, 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 that the second exploration well (CBM-KW-01) at the Kutai West Coalbed Methane Production Sharing Contract ("Kutai West CBM PSC") block has reached target depth of 900 meters. Approximately 32 meters of net coal were encountered. CBM Asia holds an 18% working interest in the Kutai West CBM PSC, which is located in East Kalimantan, Indonesia, close to the Bontang LNG export facility.
"We are encouraged by the results of the CBM-KW-O1 well so far," comments Alan Charuk, President and CEO of CBM Asia. "The net coal thickness of 32 meters is 28% thicker than net coal thickness of 25 meters found at the CBM-KW-02 well which we recently released results on. We look forward to receiving gas content results from core samples over the upcoming weeks."
The drilling rig is expected to be demobilized from the CBM-KW-01 site once permeability tests have been completed. The rig will then move to the third location to drill the CBM-KW-04 exploration well which is located approximately halfway between CBM-KW-01 and CBM-KW-02. The Kutai West PSC is directly west of VICO's Sanga-Sanga CBM PSC, which has been producing CBM for export from the Bontang LNG facility to North Asian consumers since March 2011. The Indonesian government recently announced that Sanga-Sanga CBM will earn USD7.50/Mcf for gas to be sold to local power producers.
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 further information on CBM Asia Development Corp., please contact Alan Charuk at (604) 684-2340, or (866) 504-4755, email firstname.lastname@example.org or visit our website at www.cbmasia.ca.
For investor relations contact: Micro Cap et al at 1 877 642 7622, or email@example.com
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
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.