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

CBM Asia Development Corp.

January 08, 2013 09:36 ET

CBM Asia 2013 Work Program Designed to Generate Production, Revenue and Upgrade Resources

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 8, 2013) - CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX VENTURE:TCF)(US:CBMDF)(FRANKFURT:IY2) announces its 2013 work program designed to see first commercial gas flows, upgrade resources and potentially generate revenues.

Following the exploration successes of 2012, our 2013 work program is production orientated incorporating two production pilot programs, one in the Barito basin and the other in Central Sumatra, as well as dewatering activities at the Sekayu PSC and the Kutai West PSC. The production pilots are planned in areas where CBM Asia holds operatorship, thus avoiding reliance on outside partners.

"2013 will be an impactful year for us," comments CBM Asia's President and CEO Alan Charuk. "With the number of core wells drilled and dewatering tests conducted by us and other CBM companies in Indonesia we believe there is enough geological evidence to support an accelerated drive into small-scale production pilots. We are currently gearing our operations towards that goal and with the Company in operatorship control we can reduce unforeseen delays as witnessed at the non-operated Sekayu PSC in 2012. Production pilots have the ability to generate revenue, establish and/or upgrade resources and provide the empirical evidence of commerciality. Furthermore we believe the change in our derisking strategy coupled with our Central Sumatra farm-out agenda substantially reduces future capital requirements and will ultimately increase return on investment."

Barito Basin: The work program calls for one core well on the Kuala Kapuas I PSC and one 5-well production pilot. The exact location of the core well and the pilot are to be determined but negotiations on rig deployment are well advanced. We plan drilling to commence in June. If production rates are satisfactory CBM Asia intends to sell the pilot gas to a small-scale power production unit. Such sales would result in first revenue for the company and assist in establishing a resource calculation for this PSC. CBM Asia is responsible for 100% of the capital cost.

Central Sumatra Basin: The work program calls for one 5-well production pilot. Negotiations on rig deployment are well advanced and we plan drilling to commence in October. If production rates are satisfactory CBM Asia plans to sell pilot gas to a small-scale power production unit generating first revenue and establish a resource calculation for the block. CBM Asia is responsible for 100% of the capital cost.

Sekayu PSC. Operator PT Medco Energi plans to core the CBM-SE-01 well and continue dewatering operations at the CBM-SE-02, CBM-SE-03 and CBM-SE-04 wells. The aim of the dewatering exercise is to determine producibility of the reservoir and to help locate the planned 5-well production pilot.

Dewatering data gathered in 2012 on wells CBM-SE-02 and CBM-SE-03 revealed a significant increase gas production rates as downhole pressure decreased, a positive indicator that desorption is starting to occur. The next step is to individually test the three thickest coal seams at the CBM-SE-02 well to determine their flow characteristics, which will help optimize future well completions at the Sekayu PSC. CBM-SE-03 will continue to de-water the Palembang C coal after pump replacement and cleanup. Dewatering of the CBM-SE-04 well will continue.

CBM Asia expects the dewatering exercise will establish commerciality, production capability and result in an upgrade in resource classification. Having paid its initial earn-in costs, CBM Asia is responsible for 26% of the capital cost at the Sekayu PSC going forward.

Kutai West PSC. Operator Newton Energy plans to drill one exploration well in the western portion of the block and dewater the CBM-KW-01 well to prove production potential and the extent of the coal seam sweet spots in the western portion of the block. CBM Asia is responsible for 30% of the capital cost going forward until we have paid our earn-in costs.

Reduction in Derisking Capex. Much of CBM Asia's newly acquired and Joint Study acreage in the Barito and Central Sumatra basins is contiguous, thus data gained from one block helps derisk the adjoining block. This close proximity enables CBM Asia to reduce its capital expenditures to derisk an individual PSC to the target 70-80% confidence level to approximately USD8.5-10 million including acquisition costs, one-to-three core wells, and one 5-well production pilot. This substantially reduces the Company's long-term capital requirements, which had previously estimated that two 5-well production pilots were required with a gross expenditure of USD15-20 million per isolated PSC.

Central Sumatra Farm-out. The company is actively planning to farm-out material interest of its assets in the Central Sumatra basin to reduce 2013 and future longer-term capital costs and also accelerate production pilot drilling.

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 five 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(1), more than double the country's natural gas reserves (Stevens and Hadiyanto, 2004). Since 2008 a total of 54 CBM PSCs have been granted by the Government of Indonesia, representing exploration commitments of well 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

(1) The gas in place estimates referred to herein have not be 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. There are no assurances that any portion of the estimated gas in place resources will be discovered. Furthermore, the above estimates make no allowance for the recovery of the gas which will depend on, among other things, the reservoir characteristics encountered and future economic conditions.

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. Specifically, the proposed 2013 work program referred to herein is subject to, inter alia, successfully concluding current negotiations on rig deployment, operational risks associated with coalbed methane exploration and development, unanticipated geological formations, actual results from operations, governmental and third party approvals and available financing. There are no assurances that the Company will successfully complete all or any part of its 2013 work program or that the results from such program will be consistent with the Company's expectations. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those made in our Canadian continuous disclosure filings available on SEDAR at www.sedar.com including our December 31, 2011 year end annual MD&A dated April 26, 2012 and third quarter 2012 interim MD&A dated November 28, 2012. 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.

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.

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