VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 14, 2012) - CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX VENTURE:TCF)(US:CBMDF)(FRANKFURT:IY2) has been informed by the operator Newton Energy Capital Limited that the third exploration well (CBM-KW-04) reached target depth (TD) of 1,000 meters on May 26, 2012 at the Kutai West Coalbed Methane Production Sharing Contract ("Kutai West CBM PSC") block, located in East Kalimantan, Indonesia. CBM Asia holds an 18% working interest in the Kutai West CBM PSC.
CBM-KW-04 well logs indicate 31 meters of net coal in the Balikpapan Formation which is line with the CBM-KW-01 net coal thickness of 32 meters and is 24% thicker than the 25 meters of net coal found at the CBM-KW-02 well. The drilling rig is now in transit to the next exploration well location, CBM-KW-03, which is south of the first three wells. The CBM-KW-03 well is expected to spud within the next week and will test the continuity of coal targets of the block.
Separately, on April 1, 2012 CBM Asia opened its Jakarta Representative Office at the Talavera Office Park Jl. T.B. Simatupang Kav, 22-26, South Jakarta. The office, which is located close to many of Indonesia's oil field service companies, is managed by Mr. Keith Potter, General Manager, Indonesia. It will house the core technical and administrative teams responsible for CBM Asia's day-to-day operations.
"We are encouraged by the results of the CBM-KW-04 well logs as they confirm continuous thick coal seams through the eastern section of the block," comments Alan Charuk, President and CEO of CBM Asia. "We are also delighted to open the Jakarta office as it allows us to begin operating and planning the exploration of our majority owned PSCs as well as those we plan to acquire. Keith Potter, who joined us six months ago as General Manager-Indonesia, has many years of operating and administrative experience in Indonesia and is recruiting a top-rated CBM team to execute our business plan in time and in a cost effective manner."
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 39 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 27, 2011. 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.