May 15, 2012
CBM Asia Enters Indonesia Coalbed Methane Partnership With Continental Energy Corporation
VANCOUVER, BRITISH COLUMBIA, May 15, 2012 – CBM Asia Development Corp. (“CBM Asia” or the “Company”) (TSX.V TCF), (US: CBMDF) (FWB: IY2). CBM Asia is pleased to announce it has entered into a Joint Study and Bid Group agreement with Continental Energy Corporation (OTC-BB:CPPXF) to investigate coalbed methane (“CBM”) exploration and development opportunities in Indonesia.
Under the agreement, CBM Asia and Continental will jointly and exclusively study selected areas in Indonesia with the objective of identifying geologically favorable areas to be jointly pursued as targets of opportunity for direct acquisition of coalbed methane production sharing contracts (“PSC”) offered by the Indonesian government. Acquisitions would be by public tender or direct proposal tender conducted under joint study arrangements.
Successful CBM PSC acquisitions shall be shared by CBM Asia and Continental under a pre-agreed joint operating agreement ("JOA") with participating interest of 75% CBM Asia and 25% Continental. CBM Asia shall act as operator under the JOA and any CBM PSC and pay 100% of the JOA's CBM PSC general and administrative costs. All CBM PSC acquisition costs and other JOA exploration and drilling costs shall be borne by the parties in proportion to their respective JOA participating interests.
“We are very excited having Continental Energy as a partner. Continental has extensive geological knowledge of certain areas of interest to us as well as on-the-ground operating experience,” comments Alan Charuk, President and CEO of CBM Asia. “We have identified several areas of interest which we and our new partner will be actively pursuing in the near future.”
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
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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 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.