CBM Asia Development Corp.
OTC Bulletin Board : CBMDF

CBM Asia Development Corp.

January 26, 2010 09:30 ET

CBM Asia Appoints Coalbed Methane Expert Scott H. Stevens to Board

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 26, 2010) - CBM Asia Development Corp. (TSX VENTURE:TCF)(US:CBMDF)(FRANKFURT:IY2) ("CBM Asia" or the "Company") is pleased to announce that the Board of Directors has appointed Mr. Scott H. Stevens as a director.

Mr. Stevens, Senior Vice President and Director of Advanced Resources International, Inc., is an internationally recognized coalbed methane expert and one of the principal founders of Indonesia's rapidly emerging coalbed methane industry. Since 1995 he has worked with numerous multinational oil and gas companies, as well as the Government of Indonesia, to evaluate coalbed methane resources and develop current regulations for coalbed methane investment in that country. Mr. Stevens was the first to recognize and rigorously quantify Indonesia's prospective 450 trillion cubic feet ("Tcf") of coalbed methane resources, through extensive studies on behalf of PT Caltex Pacific International (Chevron Asia), the Asian Development Bank, and Indonesia's Department of Energy and Mineral Resources ("MIGAS").

Internationally, Mr. Stevens has worked with companies such as Chevron, ConocoPhillips, and BHP Billiton to manage coalbed methane exploration and production programs in North America, China, and Australia, including the successful identification of prospects, geologic and reservoir evaluation of acquisition targets, and completion of high production wells. In 2004, the Society of Petroleum Engineers published his industry-acclaimed study entitled "Indonesia: Coalbed Methane Indicators and Basin Evaluation" which ranked Indonesia's top onshore coalbed methane basins in terms of geology, inferred reservoir quality, proximity to gas markets, and drilling infrastructure.

"We are honoured and delighted to have someone with Scott's credentials join our Board. Scott is an internationally renowned expert on coal bed methane in Asia and Indonesia in particular, and we look forward to his contribution as a director of CBM Asia," said Mr. Al Charuk, C.E.O. and President of the Company. Mr. Stevens was instrumental in assisting the Government of Indonesia in developing the country's coalbed methane contract laws which saw the award of Indonesia's first coalbed methane production sharing contract ("PSC"), the Sekayu PSC in the South Sumatra basin, on May 27, 2008. Earlier this year, the Company acquired the right to earn a 12% working interest in the Sekayu PSC and participated in the drilling of Indonesia's first official coalbed methane test well. The South Sumatra basin was ranked by Mr. Stevens as the largest prospective basin for coalbed methane in Indonesia with an estimated 183 Tcf of gas-in-place.

Mr. Stevens has been granted a stock option to acquire a total of 300,000 common shares of the Company at a price of CAD$0.29 per share for a period of five years.


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".


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

  • CBM Asia Development Corp.
    Alan Charuk
    604.684.2340 or Toll Free: 866.504.4755
    604.684.2340 or Toll Free: 866.504.4755
    604.684.2474 (FAX)