VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 22, 2013) - CBM Asia Development Corp. ("CBM Asia" or the "Company") (News - Market indicators), (US:CBMDF) (FRANKFURT:IY2) provides an operational update on its coalbed methane (CBM) properties in Indonesia.
- ExxonMobil Joint Venture. CBM Asia and ExxonMobil have agreed to extend the Umbrella Agreement signed on December 19, 2012. Both companies are engaged in amending certain terms of the agreement and the Company with approval from ExxonMobil will announce details in the near future.
"Our confidence in the commercial viability for CBM in Kalimantan is high and we look forward to success in the coming drilling season," states Alan Charuk, President and CEO of CBM Asia Development Corp. "We expect to be able to release full details of the contract amendment in the near future."
- Sekayu PSC. On May 23, 2013 Medco Energi, the operator of Sekayu PSC, resumed production testing at the CBM-02 well, installing a new high-capacity submersible pump. The well is producing a steady 3,000 bbl/day of potable-quality formation water from the Miocene-age Palembang coal seams. Gas production was initiated almost immediately and is increasing as the well dewaters. Gas produced from the well is being consumed on site to drive the downhole pump.
Coring operations have been completed at the CBM-01 well. The Company is awaiting final gas content and coal analysis reports. 4 1/2" casing has been run, cemented and perforated adjacent to the Palembang C coal seam at a depth of 1,380 - 1,404 feet.
"The rapid gas production to surface exhibited by the CBM-02 well confirms the high gas saturation previously measured on the Sekayu block and is consistent with results achieved by other CBM operators in the South Sumatra Basin", noted CBM Asia's Chairman Scott H. Stevens. "These well tests provide information needed to optimize the multi-well pilot design, which is expected to more effectively dewater the coal seams and achieve higher gas flow rates along with commercial production.
- Kutai West PSC. Newton Energy, the operator of the Kutai West PSC, plans to begin completion and stimulation operations on four coal seams in the KW-CBM-01 well in September 2013. Dewatering at this location will follow pending the results of the stimulation program.
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. 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.
The gas in place estimates referred to herein have not been 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. There are no assurances that any portion of the estimated gas in place resources will be discovered. Furthermore, the above 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.
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. Specifically, there are no assurances that the Company will be successful in negotiating amendments to the current umbrella agreement with ExxonMobil on terms satisfactory to the Company or at all. In addition, the proposed farm-in arrangement with ExxonMobil contemplated in the umbrella agreement is subject to, inter alia, the negotiation and execution of formal agreements, governmental and third party approvals, satisfactory due diligence and available financing. There are no assurances that the Company will be successful in entering into formal agreements with ExxonMobil on commercially acceptable terms or at all. 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 first quarter 2013 interim MD&A dated May 29, 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 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.
