CBM Asia Development Corp.
OTC Bulletin Board : CBMDF

CBM Asia Development Corp.

January 25, 2010 09:30 ET

CBM Asia CEO Appointed to Board of South Sumatra Energy

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 25, 2010) - CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX VENTURE:TCF)(US:CBMDF)(FRANKFURT:IY2) is pleased to announce that further to its news release of December 18, 2009, Mr. Alan T. Charuk, Chief Executive Officer and President, has been appointed to the Board of Directors of South Sumatra Energy Inc. ("SSE").

SSE is a private company jointly owned by Jakarta-based PT Ephindo ("Ephindo") and Toronto-based McLaren Resources, Inc. ("McLaren") that, together with Jakarta-based operator PT Medco Energi Internasional Tbk ("Medco"), holds the first coalbed methane Production Sharing Contract ("PSC") to be awarded by the Government of Indonesia, the 58,349 hectare Sekayu Block ("Sekayu PSC") located in the South Sumatra Basin, Indonesia. SSE and Medco each hold 50% interests in the Sekayu PSC. On December 18, 2009, CBM Asia announced that it had closed its letter of intent with Batavia Energy, Inc. ("Batavia"), as McLaren's successor-in-interest, to acquire 24% of South Sumatra Energy, representing a 12% working interest in the Sekayu PSC.

Mr. Charuk joins South Sumatra Energy's five member board of directors. The other directors are CBM Asia's Vice President Operations, Mr. Charles Bloomquist, who serves as Chairman of SSE, a position he has held since the company's formation in 2007; President of Batavia, Mr. John Kontak, a Toronto-based attorney with 25 years in international law and business development; Ephindo's CEO and President, Mr. Sammy Hamzah, a former Senior Vice President of UNOCAL Indonesia; and Ephindo's Mr. Patrick Alexander, a senior executive with 25 years experience in finance and investment banking, formerly Managing Director for Chase Manhattan Mergers & Acquisitions, Asia.

Mr. Alan T. Charuk stated: "I am honoured to join the distinguished Board of South Sumatra Energy and its partner, Indonesia's leading independent oil and gas company, Medco. The Sekayu PSC is the site of first commercially drilled coalbed methane well in Indonesia, a country where declining conventional gas reserves and growing domestic and export demands have prompted the government to expedite development of unconventional resources."


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 the right to earn an estimated 12% 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 conventional 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".


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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