May 09, 2012
CBM Asia Strategic Update: Targeting 10-15 Tcf of Net Recoverable Resources

 

VANCOUVER, BRITISH COLUMBIA, May 9, 2012 – CBM Asia Development Corp. (“CBM Asia” or the “Company”) (TSX.V TCF), (US: CBMDF) (FWB: IY2).  CBM Asia’s strategic goal is to acquire, through joint ventures, farm-ins and PSC applications, a significant land position in Indonesia’s rapidly emerging coalbed methane industry with the potential to yield 10-15 Tcf of net recoverable resources.

The Company believes that Indonesia’s CBM industry continues to provide a unique investment opportunity.  Acreage acquisition costs remain low at  USD4.88/ acre, based on CBM Asia’s actual costs to date, whereas finding costs are some of the least expensive worldwide.  For example, the demonstrated Sekayu PSC finding costs for CBM Asia and its partners were less than USD0.01/Mcf[1], a remarkably low figure which includes three test wells and the USD1.0 million signature bonus to the Indonesian government.

CBM Asia currently has interests in four PSCs (two of which are majority controlled and operated) and one PSC application (majority controlled and operated).  The Company’s net acreage position is approximately 4,392 km2 (1,084,872 acres), including the pending Hulu PSC and Bentian Baser PSC area extensions (the “Total Net Acreage”).  The Company is optimistic its current position can provide a substantial portion of its recoverable resource target. On November 2, 2011 CBM Asia announced an NI 51-101 compliant recoverable unrisked gross prospective resource (best estimate) of 1.06 Tcf at the Sekayu PSC; net 254 Bcf to the Company[2].  This interest represents a net area of approximately 139 km2 (34,400 acres) or less than 3.2% of the Total Net Acreage.

“The drilling results at our Sekayu and Kutai West PSCs, as well as those from other CBM operators and BP-ENI’s first commercial CBM gas sales to the Bontang LNG facility, provide strong indications that Indonesia’s CBM industry is likely to be large and successful” comments Alan Charuk, President and CEO of CBM Asia. “With the success at our second CBM block, Kutai West PSC, we are committed to seeking out and acquiring further CBM PSCs in order to achieve our recoverable resource target of 10-15 Tcf. Our current portfolio of four PSCs and one application provides a significant step towards that target.”

Mr. Charuk further added “with Indonesian CBM PSC’s offering favorable after-tax contractor take of approximately 45%, domestic gas prices in a favorable range of USD5.00-11.00/Mcf and LNG export prices of USD15.00/Mcf, combined with low acquisition and finding costs, we believe Indonesia’s CBM industry has the potential to generate significant returns for the Company.”

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[1] Based on recoverable unrisked gross (100%) prospective gas resources of 1,061,983 MMcf (best estimate) and total exploration expenditures of approximately US$9.3 million as at September 30, 2011.

[2] Based on the Company’s right to acquire, indirectly, a 12% participating interest in the Sekayu PSC, together with the exclusive right to secure financing, indirectly, on behalf of an additional 12% participating interest in the Sekayu 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 further information on CBM Asia Development Corp., please contact Alan Charuk at (604) 684-2340, or (866) 504-4755, email corpcom@cbmasia.ca or visit our website at www.cbmasia.ca.

For investor relations contact: Micro Cap et al at 1 877 642 7622, or info@microcapetal.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

T.604.684.2340 F.604.684.2474 TF.866.504.4755

www.cbmasia.ca

 

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 26, 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.