|
|
CBM Asia Development Corp. (TSX-V:TCF - News)(US: CBMDF)(Frankfurt:IY2 - News) announces that Mr.
Clint Sharples has resigned as Chairman of the Board of Directors. Mr.
Sharples will continue to serve as a director of the company. The Board
gratefully acknowledges Mr. Sharples' contributions to the company as
Chairman during the past four years.
The Board is pleased to announce that
effective today current director Mr. Scott H. Stevens will assume the
position of Chairman. Mr. Stevens first joined the board as a director on January
26, 2010. Since 1995, Mr. Stevens has helped to pioneer Indonesia's rapidly
emerging coalbed methane industry. 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), ExxonMobil, Shell,
TOTAL, the Asian Development Bank, and Indonesia's Department of Energy and
Mineral Resources ("MIGAS").
Internationally, Mr. Stevens has managed
coalbed methane exploration and production programs in North America, China,
and Poland, including the successful identification of prospects, geologic
and reservoir evaluation, 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. His report served as the basis for Indonesia's
coalbed methane industry, with over 20 production licenses awarded to date to
BP, ExxonMobil, Medco, Dart Energy, their partners, as well as to other
companies.
"As CBM Asia and its partners move
ahead with well testing programs in Sumatra and Kalimantan, Scott's extensive
experience with reservoir evaluation and reserve accreditation will be an
asset to the company," said Mr. Al Charuk, CEO 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 1,000,000 common shares of the Company at a
price of CAD$0.15 per share for a period of five years.
The Company also announces that it has
arranged a private placement of 3,333,333 common shares (the
"Shares") at a price of CDN$0.15 per Share for gross proceeds of
CDN$500,000 (the "Private Placement").
The private placement includes an
over-allotment option, at the sole discretion of the Company, to increase the
size of the offering by up to an additional 1,000,000 common shares, for
additional gross proceeds of $150,000.
The net proceeds of the Private
Placement will be used to fund the exploration and development of the
Company's coalbed methane interests in Indonesia and for general working
capital purposes.
A finder's fee may be payable in
connection with the Private Placement in accordance with policies of the TSX
Venture Exchange.
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 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".
ON BEHALF OF CBM ASIA DEVELOPMENT CORP.
Alan T. Charuk, President & CEO
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.
|
|