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

CBM Asia Development Corp.

November 26, 2013 13:05 ET

CBM Asia Update: Kutai West Operational Results, Gas-to-Power MoU and Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 26, 2013) -

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

CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX VENTURE:TCF) (US:CBMDF) (FRANKFURT:IY2) provides an update on recent testing activities at the Kutai West PSC, the signing of a Gas-to-Power Memorandum of Understanding with PT Navigat Energy and the CAD3.8 million non-brokered private placement.

Kutai West Test Results. The Company in collaboration with operator Newton Energy reports the following operational results from the KW-CBM-1 well in the Kutai West PSC, East Kalimantan. Service contractor Halliburton has conducted DFIT (mini-frac) reservoir tests on four coal seam intervals to measure permeability and pore pressure. Halliburton then successfully pumped hydraulic stimulations as designed into the four coal seam intervals. The rig has been released and a progressive cavity pump has been installed in the well for long-term production testing.

Preliminary well test analyses conducted by Halliburton, as well as the corresponding gas content data measured previously by GeoGas, are reported as follows;

Table 1: Coal Seam Reservoir Test Results from KW-001-CBM Well
Coal Interval Depth Absolute Pore Gas Content
Seam Top Bottom Permeability Pressure dry, ash-free
Interval (m) (feet) (m) (feet) (mD) (psi) (m3/t) (ft3/ton)
1 314.0 1030.2 319.0 1046.6 5.39 450 7.22 231
2 366.5 1202.4 368.0 1207.3 5.83 526 6.34 203
3 467.4 1533.5 470.0 1542.0 4.78 736 9.12 292
4 690.7 2266.1 693.7 2275.9 1.17 952 11.21 359
Halliburton report dated November 21, 2013: depth, permeability and pore pressure measurements
GeoGas Pty Ltd report dated July 2012: gas content measurements

CBM Asia Chairman Scott H. Stevens noted "These further tests at the Kutai West PSC, located just 20 km from the Bontang LNG export facility, demonstrate good coal seam permeability and reservoir pressure. Core testing conducted in 2012 demonstrated excellent gas content at the block. While permeability declined with depth, as expected, we plan to concentrate on the shallower coals above 2,000 feet which have good permeability in the 5-mD range."

Gas-to-Power MOU. CBM Asia signed a Memorandum of Understanding (MOU) with PT Navigat Energy to supply up to 5.0 MMscf/d of coalbed methane from its planned production pilot(s) to gas engine power generation project(s) in the Barito Basin, South Kalimantan, Indonesia. The two parties will proceed to negotiate with PT PLN (Persero), Indonesia's state power supplier, on the sale of power and gas. CBM Asia's role will be limited to gas producer and supplier.

PT Navigat Energy (www.navigat.com) is an integrated distributed power project developer in South East Asia focused on the value chain of equipment sales, services, construction and asset ownership of small scale power projects (1-100MW). The group is involved in the supply and development of a total 803 MW in Thailand, Indonesia and Myanmar and is supported by the largest power equipment supplier, General Electric and Standard Chartered Bank, one of the largest banks in Asia.

"With the signing of Gas-to-Power MOU and the Gas-to-LNG MOU (signed in September), we have established commercial channels for early monetization of up to 55 MMscf/d from pilot production and beyond under Plan of Developments," states Alan Charuk CBM Asia's President and CEO. "The quality of our potential gas offtakers, joint venture partners and their financial supporters will play a major role in our ability to secure project financing for these exciting development programs."

Private Placement. The Company has received subscriptions and funds totaling approximately CAD250,000 for the CAD3.8 million private placement announced on November 25, 2013 and is in the process of execution. The CAD517,734 management tranche announced on August 26, 2013 is fully subscribed with all funds received. The management tranche has been transferred to the new Private Placement and will be executed following public disclosure of the conclusion on the ExxonMobil Umbrella Agreement amendment and TSX-V acceptance.

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, with the right to farm-into 4 additional PSCs. 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 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

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.

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