VANCOUVER, British Columbia--(BUSINESS WIRE)--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 first coalbed methane exploration core well (“CBM-KW-01”) in the Kutai West Coalbed Methane Production Sharing Contract (“Kutai West CBM PSC”) block, located in East Kalimantan, Indonesia, was spud on December 12, 2011. CBM Asia holds an 18% working interest in the Kutai West CBM PSC.
CBM Asia’s Chairman, Mr. Scott Stevens commented “This well is a key first step towards delineating coalbed methane resources and commercial potential of the highly promising Kutai West PSC. The Balikpapan coal seams correlate with coalbed methane reservoirs already commercially producing next door at VICO’s Sanga-Sanga CBM PSC. In March 2011, VICO, a joint venture between BP and Eni, announced the first commercial coalbed methane to LNG production at the Bontang LNG plant for export to Asia’s high demand gas markets.”
CBM-KW-01 will be a vertical well aimed at evaluating gas potential and reservoir properties of coal seams in the Miocene-age Balikpapan Formation. Historical data from this formation including coal seam thickness and gas content, along with drilling in the area covered by the Kutai West CBM PSC, indicate that the coal seams are well developed with prolific shallow gas. Coring will begin beneath the surface casing and continue to a depth of approximately 1,000 meters. The CBM-KW-01 is the first in a series of four wells set out in a work program delineating the southeastern part of the block, considered the most prospective and closest to potential gas markets.
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
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. See “Risks and Uncertainties” in the Company’s annual MD&A dated April 27, 2011 available on SEDAR at www.sedar.com 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.