CBM Asia Development Corp.
OTC Bulletin Board : CBMDF

CBM Asia Development Corp.

June 30, 2009 23:31 ET

CBM Asia Updates News on Second PSC Application and Drill Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 30, 2009) - Further to CBM Asia Development Corp.'s (the "Company" or "CBM Asia") (TSX VENTURE:TCF)(OTCBB:CBMDF)(FRANKFURT:IY2) news release of June 25, 2009, CBM Asia today provided this updated news release to include its Indonesian partners, PT Ephindo ("Ephindo"), in the announcement.

CBM Asia announced that it has, through its Indonesian partner Ephindo, submitted an application for a second coalbed methane Production Sharing Contract ("PSC") in the gas-rich Kutai Basin of East Kalimantan, Indonesia, estimated to contain 80 TCD of coalbed methane (SPE 2004). This application covers an area of approximately 56,300 hectares that is adjacent to, and contiguous with, the area of the existing Kutai West PSC. Should a PSC be awarded, the Company will retain a 40% working interest in this new contract area.

On June 15, 2009, the Company and Ephindo completed the PSC application and submitted it for technical review by the government of Indonesia (Migas). A joint evaluation will follow in mid-July, to be conducted with the government appointed authority. The Company expects that, based on the results of this joint evaluation, expected to take about four months, a PSC might be awarded. If successfully awarded this second PSC, the Company's participation in projects under contract will total approximately 132,300 hectares, on which the Company intends to pursue a future work program exploring for coalbed methane.

Al Charuk, president of CBM Asia, had this to say, "I am pleased with the Company's progress in executing our business plan; the CBM Asia team has put in a great deal of hard work achieving this milestone."

In other news, the Company continues to work with its partner Ephindo, to prepare for the BP Migas bidding process for services on its Kutai West PSC. The bidding process includes services relating to the environment, drilling, logging, cementing, coring, laboratory analysis and construction. The Company expects equipment to be moved to PSC locations this summer in preparation for the initial drill program.

CBM Asia is a Canadian-based unconventional gas company with significant coalbed methane ("CBM") exploration and development opportunities in Indonesia. The Company 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. The Company is responsible for carrying out a US$5.6 million exploration and appraisal program over the next three years (to November 2011), to determine commercial feasibility of CBM production and submit a Plan of Development to the Government of Indonesia. Indonesia has one of the largest CBM reserves in the world with a potential 453 trillion cubic feet ("TCF"). The Kutai Basin, the third largest CBM basin in Indonesia, is estimated to contain in-place resources of approximately 80 TCF (SPE, 2004).


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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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