CBM Asia Development Corp.
TSX VENTURE : TCF
FRANKFURT : IY2

CBM Asia Development Corp.

October 07, 2009 09:00 ET

CBM Asia Announces Preliminary Results of Indonesia's First Coalbed Methane Well

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 7, 2009) -

NOTE: Press Photo accompanies this news release

CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX VENTURE:TCF)(US:CBMDF)(FRANKFURT:IY2) announces that, together with the operator PT Medco Energi Internasional Tbk ("Medco") and Indonesian partner PT Ephindo, they have completed drilling on Indonesia's first commercially drilled coalbed methane test well (CBM-SE-02) in the Sekayu Production Sharing Contract ("Sekayu PSC") block located in the South Sumatra Basin, Indonesia.

Targeting the major coal seams of the Muara Enim Formation, CBM-SE-02 reached a total depth of 1,950 feet penetrating coal seams with cumulative thickness of 90 feet. Within the upper group, the Palembang B, the well penetrated a coal seam with a thickness of 40 feet. The Palembang C seam, also in the upper group of the formation, showed a single 20-foot thick coal seam. In the lower Maura Enim unit, the Pangadang A, three seams with an aggregate coal thickness of 30 feet were encountered over an interval of 60 feet. The test well was cased to 878 feet, with the five coal seams cored using PT Halliburton Indonesia's wireline retrievable coring system. Samples preserved in sealed canisters have been shipped to the Center for Geological Survey, Geological Agency of Indonesia in Bandung, where gas contents and saturations will be determined over the next few weeks. An injection falloff test was successfully conducted in the Palembang B coal to assess permeability.

The Company entered into a binding letter of intent to acquire a participation interest in the 58,349 hectare Sekayu PSC and has committed to fund an initial US$3.25 million in exploration expenditures to prove reserves and submit a plan of development to the Government of Indonesia. "We are pleased with preliminary results from Indonesia's first coalbed methane well, where the coal seams penetrated were consistent with our expectations", stated Mr. Alan Charuk, President and Chief Executive Officer of CBM Asia. "The drilling of this well begins the process of confirming the geological model of the Sekayu block, which was derived in the course of the Joint Evaluation Study, based on extensive subsurface control and 2-D seismic plus geotechnical data provided by the Government of Indonesia. The comprehensive data utilized in this study has greatly increased our understanding of the geology of this massive basin. Medco expects to drill ten more exploratory/evaluation wells by the end of 2010."

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 has entered into a binding letter of intent to acquire a participating interest in a production sharing contract ("PSC") for CBM on a 58,349 hectare block located in the South Sumatra Basin where initial exploration drilling of a production test well commenced in the second half of 2009. The Company has committed to fund an initial US$3.25 million in exploration expenditures on the Sekayu PSC to prove reserves and submit a Plan of Development to the Government of Indonesia. The Company also has an 18% net working interest in a PSC for CBM on a 76,000 hectare block located in the Kutai Basin of East Kalimantan. As geotechnical lead, the Company is responsible for directing a US$5.6 million exploration and appraisal program to November 2011, to determine commercial feasibility of CBM production for the Kutai-West PSC and submit a Plan of Development. The Company has 40% net working interests in a second 56,500 hectare block also in the prolific Kutai Basin. 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 (SPE, 2004). Between May 2008 and August 2009, 15 CBM PSCs were granted by the Government of Indonesia, representing exploration commitments of US$95.68 million over the next 3 years. The Company trades on the TSX Venture Exchange under the symbol "TCF".

ON BEHALF OF CBM ASIA DEVELOPMENT CORP.

Alan T. Charuk, President & CEO

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. Investors 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. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

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