CBM Asia Development Corp.
OTC Bulletin Board : CBMDF

CBM Asia Development Corp.

April 27, 2011 17:33 ET

CBM Asia Development Corp.: Gas to Surface from Thick, Near-Saturated Coals at Sekayu PSC, South Sumatra, Indonesia

Pandangan A coals estimated gas content at 93% saturation

Short term dewatering test underway

Small amount of flammable gas being produced to surface

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 27, 2011) - CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX VENTURE:TCF)(US:CBMDF)(FRANKFURT:IY2) announces that MedcoEnergi has measured a high degree of coal seam gas saturation in the CBM-SE-02 well at the Sekayu coalbed methane production sharing contract in South Sumatra.

CBM Asia's Chairman Scott H. Stevens noted: "This test confirms good gas content and high gas saturation in the thick coals present across the Sekayu PSC. Combined with additional gas desorption data anticipated soon from Medco's three deeper test wells, the Company expects that its third-party consultant will have sufficient data for evaluating the resources and commercial potential of coalbed methane development at Sekayu."

Well-site contractor Weatherford International Ltd. conducted Coreless Critical Desorption Pressure testing on the 36-foot thick Pandangan A coals within the 1,710- to 1,793-foot depth interval. Coal seam gas content was measured at approximately 100 scf/ton (dry, ash-free basis), with an estimated 93% level of gas saturation. Gas composition has not yet been determined but the gas being produced to surface is flammable.

MedcoEnergi subsequently installed a downhole pump in the well and has begun a short-term test to dewater the coal seams. Already, a small amount of gas is being produced to the surface from these still unstimulated coal seams.

About MedcoEnergi.

MedcoEnergi is the first Indonesian company operating in the oil & gas exploration and production business listed in Jakarta Stock Exchange since 1994. Now, MedcoEnergi has transformed itself from local company to become an energy company operating in Indonesia and overseas, with focus on Oil and Gas, power generation and renewable fuels.


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 the 58,349-hectare Sekayu block located in the South Sumatra Basin where 3 exploration wells are currently being drilled by MedcoEnergi, following initial exploration drilling of a production test well 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. 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). Since 2008 approximately 25 CBM PSCs have been granted by the Government of Indonesia, representing exploration commitments of 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, and TOTAL. The Company trades on the TSX Venture Exchange under the symbol "TCF".


Alan T. Charuk, President & CEO

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. 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 does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

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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