VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 31, 2013) - CBM Asia Development Corp. ("CBM Asia" or the "Company") (News - Market indicators)(US:CBMDF)(FRANKFURT:IY2) announces that Qualified Reserves Evaluator Netherland, Sewell & Associates, Inc. (NSAI) has completed its coalbed methane resource estimate for the Kutai West Production Sharing Contract (PSC) in East Kalimantan, Indonesia. The NSAI technical report can be found on the Company's website and on SEDAR.

NSAI's latest appraisal concluded the following key findings under its Best Estimate (most likely case):

1. 3,915 Bcf of gross unrisked prospective gas resources (705 Bcf net).
2. Estimated 80% probability of geological discovery.
3. 50% overall probability of commerciality including geological and development risks.
4. Gas content of 300 scf/ton (dry, ash-free basis).

Note: Prospective resource estimates are not proven reserves or contingent resources. Please see further notes below for important disclosures on risks.

"The Company has established 705 Bcf of net unrisked prospective gas resources near the Bontang LNG facility, which exports natural gas to North Asia at prices in excess of USD12/Mcf," notes CBM Asia's Chairman Scott H. Stevens. "Combined with NSAI's previous estimate for the Sekayu PSC in South Sumatra of 276 Bcf of net prospective resources, the Company's total net unrisked prospective resources from its Kutai West and Sekayu PSC's equals 981 Bcf (4.976 Tcf gross). These two blocks represent just 6.1% (307 km²) of the Company's total net acreage position of 5,070 km² within nine PSC's and one Joint Study ⁽¹⁾, supporting our 15-Tcf target ⁽²⁾ in Indonesia.

Mr. Stevens further comments, "Actual exploration costs incurred at the Sekayu and Kutai West PSC's total less than USD0.01/Mcf, far below the current natural gas prices of USD5.50 to 9.40/Mcf in South Sumatra and higher in East Kalimantan near the Bontang LNG facility."

Kutai West PSC: Resource Estimate

Texas-based Netherland, Sewell & Associates, Inc. (NSAI) prepared the resource assessment of the Kutai West PSC as of December 31, 2012 in accordance with Canadian NI 51-101 standards and the COGE Handbook. NSAI has prepared numerous resource studies for CBM operators in Australia, China, Indonesia and other countries. Please see notes below for important disclosures on risks. 

NSAI estimates the unrisked gross (100%) prospective gas resources and unrisked gross prospective gas resources to CBM Asia's interest in the Kutai West PSC as of December 31, 2012 as follows:

Gas volumes are expressed in billions of cubic feet (Bcf) at standard temperature and pressure bases.

Important Notes

1. A Production Sharing Contract (PSC) between CBM Asia, its partners and the Indonesian Government executed for Kutai West gives CBM Asia and its partners the right to explore for coalbed methane. If a commercial discovery is made, CBM Asia and its partners have the right to develop and produce from Kutai West. CBM Asia holds an 18% participating interest in the Kutai West PSC.

2. The above prospective resources have been estimated using probabilistic methods and are dependent on a CBM discovery being made. If a discovery is made and development undertaken, the probability that the recoverable volumes will equal or exceed the unrisked estimated amounts is 90% for the low estimate, 50% for the best estimate, and 10% for the high estimate.

3. Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. The chance of commerciality is the product of these two risk components. There is no certainty that any portion of the prospective resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the prospective resources. Prospective gas resources are undiscovered resources and represent exploration opportunities and quantify the development potential in the event a petroleum discovery is made and should not be construed as reserves or contingent resources.

4. Unrisked prospective resources for CBM prospects are estimated ranges of recoverable gas volumes assuming their discovery and development and are based on estimated ranges of in-place volumes. Geologic risking of prospective resources addresses the probability of success for the discovery of a significant quantity of potentially moveable petroleum; this risk analysis is conducted independent of estimations of petroleum volumes. For CBM prospects, principal geologic risk elements include coal quantity, gas content, and coal permeability. Development risking of prospective resources for CBM accumulations should include consideration of whether the entire area addressed by the assessment can and will be developed; this component is generally unique to CBM prospects because of the thickness and areal extent and wide variability in rock, gas content, and production characteristics across that areal extent. For CBM prospects, principal development risk elements are reservoir quality across the evaluated acreage, development and application of technology needed to commercially produce the acreage, the ability to depressure the reservoir over a reasonable period of time, project commercial conditions (financial, marketing, legal, social, and governmental factors), and a reasonable expectation of a commitment to develop the acreage. 

Geologic and development risk factors for the Kutai West PSC are shown in the following table:

5. For a further discussion of the risks and uncertainties associated with the recovery of unrisked prospective resources and other significant factors relevant to the above estimates, please refer directly to NSAI's technical report entitled "Estimates of Prospective Resources to the CBM Asia Development Corporation Interest in Certain Coalbed Methane Properties located in the Kutai West Block Kutai Basin, Indonesia as of December 31, 2012" filed on SEDAR at www.sedar.com and posted on the Company's website at www.cbmasia.ca.

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⁽³⁾, 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

(1) This figure includes 4 existing PSCs in the Barito basin, South Kalimantan to which the Company has the right to farm into under its joint venture agreement with ExxonMobil announced December 20, 2012.

(2) See the Company's news release of January 9, 2013 for further details regarding the Company's 15 Tcf resource target.

(3) Society of Petroleum Engineers Paper 88630 (not NI 51-101 compliant). These gas in place estimates have not be 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, the farm-in arrangement with ExxonMobil referred to herein 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, 2011 year end annual MD&A dated April 26, 2012 and third quarter 2012 interim MD&A dated November 28, 2012. 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.