CBM Asia Development Corp.
OTC Bulletin Board : CBMDF

CBM Asia Development Corp.

May 06, 2010 09:30 ET

CBM Asia Announces Update to Kutai-West Coalbed Methane Work Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 6, 2010) - CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX VENTURE:TCF)(US:CBMDF)(FRANKFURT:IY2), announces that it has been informed by its operating partner Newton Energy Capital Limited ("Newton Energy Capital"), that it has invited through public tender potential service contractors to participate in the pre-qualification process for its upcoming drilling program in the Kutai-West coalbed methane Production Sharing Contract ("PSC") block, in East Kalimantan, Indonesia.

On May 3, 2010, Newton Energy Capital, a wholly owned subsidiary of Indonesia's Tanito Coal Group, advertised in Media Indonesia Newspaper, for Integrated Drilling Project Management to consolidate the various services required to perform the 2010 Work Program. CBM Asia has received confirmation from Newton Capital Energy that it has obtained approvals required from Indonesia's Executive Agency for Upstream Oil and Natural Gas Activities (BPMigas) for the 2010 Work Program. Newton Energy Capital expects to commence its proposed US$3 million coalbed methane work program in the second half of 2010, provided proper services can be contracted without further tendering. The program will include a 4-6 well drilling program to evaluate coalbed methane potential of the 76,000 hectare block, of which 6 potential drill sites for 3 core hole test wells and 3 pilot well holes have been identified amongst Newton Energy Capital's existing road infrastructure. CBM Asia has been appointed geotechnical lead and based on the Company's participation interest in the Kutai-West PSC, is responsible for 30% percent of the 2010 Work Program expenditures.


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. Sekayu Block Interests of the Company, Ephindo and Batavia Energy are held in South Sumatra Energy, Inc. 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 (Stevens and Hadiyanto, 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". http://www.cbmasia.ca


"Alan T. Charuk"

President & CEO

Gas-in-place resource estimates make no allowance for recovery of the gas. The volumes of gas which may be recoverable will depend on the reservoir characteristics encountered and future economic conditions. These gas in place estimates are not compliant with volumes of oil and gas resources classified as "discovered petroleum initially-in-place" within the meaning of the Canadian Oil & Gas Evaluation Handbook (COGE Handbook). The term "discovered petroleum initially-in-place" is equivalent to discovered resources, and is defined in the COGE Handbook to mean that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production.

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.

Neither 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.

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