VANCOUVER, BRITISH COLUMBIA--(Marketwire -08/19/11)- CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX-V: TCF.V - News)(US: CBMDF.PK - News)(Frankfurt: IY2.F - News) announces that Medco Energi has received final gas content data from Core Laboratories N.V. for the CBM-SE-04 well at the Sekayu coalbed methane production sharing contract in South Sumatra.
Core Laboratories conducted gas content analysis on nine coal samples that were cored and desorbed from the CBM-SE-04 well at the Sekayu block, which as previously reported penetrated a total 147 feet of coal. Gas contents ranged from 76 to 203 standard cubic feet per ton (scf/ton) on a dry, ash-free (d.a.f.) basis, averaging 141 scf/ton d.a.f.
That is about triple the average coal seam gas content in the Powder River Basin in Wyoming, USA, which the US Geological Survey and other experts consider to be the closest commercial CBM analog for South Sumatra. The Powder River Basin is the world's second most productive CBM basin, currently producing 1.5 billion cubic feet per day (Bcfd) from thick, low-rank coal seams similar to those in South Sumatra. Note that wellhead gas prices in South Sumatra currently are 50% higher than in the Powder River Basin.
CBM Asia's Chairman Scott H. Stevens noted "Gas content from CBM-SE-04 is 40% higher than anticipated. Immediate gas production from the nearby CBM-SE-02 and -03 wells prior to stimulation and with minimal dewatering is highly encouraging. Medco's operations at the Sekayu PSC continue to confirm good gas content and permeability, along with high gas saturation in the thick coals that are present across the block."
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 entered into a binding letter of intent to acquire a participating interest in a production sharing contract ("PSC") for CBM on the 580.3 km2 Sekayu block located in the South Sumatra Basin where three exploration wells are being drilled by Medco Energi, following initial exploration drilling of a production test well 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. Sekayu Block Interests of the Company, Ephindo and Batavia Energy are held in South Sumatra Energy, Inc. The Company also has an 18% net working interest in a PSC for CBM on an 869 km2 block located in the Kutai Basin of East Kalimantan. 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 more than 30 CBM PSCs have been granted by the Government of Indonesia, representing exploration commitments of over US$100 million during the next three years. In addition to CBM Asia, other companies active in CBM exploration in Indonesia include BP, Dart Energy, ENI, ExxonMobil, Medco, and TOTAL. The Company trades on the TSX Venture Exchange under the symbol "TCF". http://www.cbmasia.ca
ON BEHALF OF CBM ASIA DEVELOPMENT CORP.
Alan T. Charuk, President & CEO
For further information on CBM Asia Development Corp., please visit our website at www.cbmasia.ca.
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. See "Risks and Uncertainties" in the Company's annual MD&A dated April 27, 2011 available on SEDAR at www.sedar.com 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.
- CBM Asia Development
CBM Asia Development Corp.
(604) 684-2340 or (866) 504-4755
For investor relations contact:
1 877 642 7622
CBM Asia Development Corp.
404-815 Hornby Street, Vancouver, BC
604.684.2340 or Toll-Free: 866.504.4755