VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 1, 2012) - CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX VENTURE:TCF)(US:CBMDF)(FRANKFURT:IY2). CBM Asia announces that it has received formal notification from the Director General of Oil & Gas ("MIGAS") to begin a Joint Study of the 1,382 km2 Riau Area CBM Block. Under the Joint Study Agreement CBM Asia and its partner PT Tranaco Utama ("Tranaco") will conduct geological studies in cooperation with an Indonesian University to determine the economic viability of potential coalbed methane within the study area. If the study area is deemed economically viable CBM Asia and Tranaco will hold the right to apply for a Production Sharing Contract ("PSC") for the area.
The Riau study area is located in Central Sumatra, with its southern boundary sharing the northern boundary of the company's 70% held and operated Hulu PSC. CBM Asia has signed a Heads of Agreement with Tranaco under which CBM Asia will hold an 80% participating interest in the Riau Area CBM Block and will be the Operator. CBM Asia will pay 100% of the Joint Study costs which are estimated at USD300,000. The Joint Study is expected to take 4 months to complete.
CBM Asia also announces that it has made formal applications to conduct an additional three Joint Studies in prospective CBM areas in Sumatra and Kalimantan with a combined area of 7,704 km2. The company will make further announcements in regards to these Joint Studies on receipt of formal Joint Study approval notifications from MIGAS.
"We are excited to begin the Riau Joint Study as well as formally applying for three additional Joint Study areas. We have made a thorough analysis of these areas and expect the Joint Study reports to reflect our enthusiasm," comments CBM Asia's CEO Alan T. Charuk. "These areas as well as other growth opportunities under review support our goal to acquire a potential net recoverable resource base of 10-15 Tcf."
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 four 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 50 CBM PSCs have been granted by the Government of Indonesia, representing exploration commitments of 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
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. 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 annual MD&A dated April 26, 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. 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.
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.