CBM Asia Development Corp.
OTC Bulletin Board : CBMDF

CBM Asia Development Corp.

September 16, 2009 14:57 ET

CBM Asia Arranges CDN$3,000,000 Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 16, 2009) - CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX VENTURE:TCF)(OTCBB:CBMDF)(FRANKFURT:IY2) announces that it has arranged a private placement of 10,000,000 units (the "Units") at a price of CDN$0.30 per Unit for gross proceeds of CDN$3,000,000 (the "Private Placement"). Each Unit consists of one common share (a "Share") and one share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to acquire an additional Share (a "Warrant Share") at a price of CDN$0.40 per Warrant Share for a period of 36 months, provided that if the Company's shares trade at CDN$1.25 per Share or more for 20 consecutive days, the Company shall have the right to accelerate the expiry date of the Warrants upon 30 days notice.

The net proceeds of the Private Placement will be used to fund the exploration and development of the Company's coalbed methane interests in Indonesia and for general working capital purposes.

A finder's fee is payable in connection with the Private Placement in accordance with policies of the TSX Venture Exchange.


CBM Asia Development Corporation ("CBM Asia" or the "Company") is a Canadian-based unconventional gas company with significant coalbed methane ("CBM") exploration and development opportunities in Indonesia. The Company has 24% net participation interest in a Production Sharing Contract ("PSC") for CBM on a 58,349 hectare block located in the South Sumatra Basin of Indonesia where initial exploration drilling of a production test well is scheduled to commence in the second half of 2009. 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 over the next three years (to November 2011), to determine commercial feasibility of CBM production for the Kutai-West PSC and submit a Plan of Development to the Government of Indonesia. 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 reserves in the world with a potential 453 trillion cubic feet ("Tcf"), more than double the country's natural gas reserves. The South Sumatra Basin, the largest CBM basin in Indonesia, is estimated to contain in-place resources of approximately 183 Tcf; and the Kutai Basin, the third largest CBM basin in Indonesia, is estimated to contain in-place resources of approximately 80 Tcf (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".


Alan T. Charuk, President & C.E.O.

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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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