CBM Asia Development Corp.
OTC Bulletin Board : CBMDF

CBM Asia Development Corp.

February 02, 2010 09:30 ET

CBM Asia Announces Further Test Results From First Exploration Well in South Sumatra; March Spud Date Set for Second Well

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 2, 2010) - CBM Asia Development Corp. (TSX VENTURE:TCF)(US:CBMDF)(FRANKFURT:IY2) ("CBM Asia" or the "Company"), together with Jakarta-based operator PT Medco Energi Internasional Tbk ("Medco"), Ephindo Ilthabi CBM Holdings Inc. ("Ephindo") and Batavia Energy, Inc ("Batavia"), announces further results from the CBM-SE-02 coalbed methane test well in the Sekayu Production Sharing Contract ("Sekayu PSC") block, located in the South Sumatra Basin, Indonesia.

CBM Asia also announces the March 2010 projected spud date for Medco's second coalbed methane test well at the Sekayu block. CBM-SE-01 will be located approximately 18 km south of the first test well. Coal seam objectives in the planned well are projected to be below 1500-foot depth, with the potential for significantly higher gas contents. Medco has contracted a rig for this well and initiated site preparation. Protocols for core recovery and gas content measurement at the new well have been strengthened.

Core Laboratories has completed a comprehensive analysis of two coals sampled from the CBM-SE-02 well. These tests indicate the methane storage capacity at the relatively shallow sample depth (1074-1082 feet) ranges from 75 to 85 standard cubic feet per ton (scf/ton), computed on a dry, ash-free basis. Based on these measurements, the storage capacity at the deeper planned SE-01 well is projected to be in the range of 90 to 110 scf/ton, or possibly higher. Laboratory analysis of other coal samples from the SE-02 well continues and further results are expected within coming weeks.

CBM Asia President and CEO Al Charuk noted that "recent analyses conducted by Core Laboratories on the CBM-SE-02 coal samples confirm the gas storage potential at the Sekayu PSC. In addition, the highly favorable 500-millidarcy permeability measured in this well is an excellent indication of reservoir quality, comparable to permeability found in Wyoming's prolific Powder River CBM basin. While this project is still at an early stage of reservoir evaluation, we are encouraged by the results to date. We anticipate that Medco's planned stepout well will help to extend the CBM potential into a deeper, more prospective portion of the Sekayu block."


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.

Contact Information