CBM Asia Development Corp.

TSX VENTURE : TCF
OTCBB : CBMDF
FRANKFURT : IY2


CBM Asia Development Corp.

April 28, 2014 08:00 ET

CBM Asia Announces Operations Update on Kutai West and Board, Management Changes

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 28, 2014) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

Following the announcement in regard to the development plans of the Kutai West PSC (April 4, 2014), CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX VENTURE:TCF)(US:CBMDF)(FRANKFURT:IY2) announces an update on coalbed methane production operations at the block, where the Company holds 705 Bcf of net prospective recoverable resources.1 The Company also announces the resignation of board member Adam Clarke and the return of Keith Potter to his former position as General Manager, Indonesia.

During the past few weeks the KW-CBM01 well at Kutai West has been undergoing initial production testing. Operator Newton Energy has installed a progressive cavity pump in the well and is adjusting pump rates and position to optimize dewatering and gas production. Although the well is an isolated CBM test and at a very early stage of dewatering, already gas rates of 16 Mcfd have been measured. This confirms earlier testing which indicated a high degree of gas saturation. The longer term plan is to drill four new wells surrounding the KW-CBM01 well for improved dewatering and higher gas production.

Our plan at Kutai West is similar to what VICO Indonesia has already accomplished at two CBM pilots in the adjacent Sanga-Sanga PSC, where commercial production has been underway for three years. VICO, the joint-venture between BP and ENI, recently announced plans to drill 20 additional CBM wells at Sanga-Sanga to provide more gas supply for the Bontang LNG export facility.

Separately, consistent with the Company's ongoing cost cutting measures, director Adam Clarke has resigned from all management and board positions. However, Mr. Clarke remains available to the Company on a consulting basis during the ongoing capital raise. The Company gratefully recognizes the many contributions Mr. Clarke has made during his past three years of service. In Jakarta, Mr. Keith Potter stepped down as the company's VP Operations, but continues in his duties as General Manager Indonesia.

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 feet3 in-place, 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, 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.
"Charles W. Bloomquist"
President and CEO

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.

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. The economics of exploring, developing and operating resource properties are affected by many factors including, but not limited to, the cost of exploration and development operations, conclusions of economic evaluations, unexpected formations or pressures, premature declines in reserves, potential environmental damage, blow‐outs, fires, variations in the amount and saturation of CBM contained in individual coal seams and the rate of production therefrom, fluctuations in gas prices and the availability of capital. There are no assurances that the Company's work programs will result in the discovery of commercially viable or economically producible properties or that the Company will be successful in completing the Offering in whole or in part. Gas in place estimates referred to in this news release are not NI 51-101 compliant and do not represent "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 referred to herein will be discovered. Furthermore, such 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. 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, 2012 year end annual MD&A dated April 24, 2013 and June 30, 2013 interim MD&A dated August 20, 2013. 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.

THIS NEWS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL SECURITIES AND THE COMPANY IS NOT SOLICITING AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

1 NI 51-101 compliant resource audit conducted by NSAI in January 2013

Contact Information

  • CBM Asia Development Corp.
    Charles Bloomquist
    Email corpcom@cbmasia.ca

    Investor Relations
    Micro Cap et al
    1 877 642 7622
    info@microcapetal.com

    CBM Asia Development Corp.
    404-815 Hornby Street
    Vancouver, BC, V6Z 2E6
    T.604.684.2340 / TF.866.504.4755
    604.684.2474 (FAX)
    www.cbmasia.ca