CBM Asia and ExxonMobil Sign Farm-in Joint Venture in the Barito and
Kutai Basins, Indonesia
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/20/12 -- CBM Asia
Development Corp. ("CBM Asia" or the "Company") (TSX
VENTURE:TCF)(US:CBMDF)(FRANKFURT:IY2) announces that it has signed a
joint venture agreement with ExxonMobil to farm into four existing
coalbed methane production sharing contracts (PSC) in the Barito
Basin, South Kalimantan, Indonesia and acquire rights to farm into
certain additional PSCs in the Kutai Basin, East Kalimantan. CBM Asia
and ExxonMobil would hold equal ownership interest in each PSC.
The final terms and conditions of the proposed farm-in remain subject
to the negotiation and execution of formal agreements between
ExxonMobil and CBM Asia, as well as, among other conditions,
Barito Basin. CBMA will acquire a 35% to 37.5% participating
interests in four existing PSCs in the Barito Basin, South
Kalimantan, Indonesia. CBM Asia and ExxonMobil plan to carry out
certain pilot well test programs, and CBM Asia will fund certain
operating costs associated with the PSCs.
Kutai Basin. In addition, CBM Asia will acquire the right to farm
into 50% of ExxonMobil's future participating interest in certain
coalbed methane PSCs in which ExxonMobil may acquire an interest
located in the Kutai Basin, East Kalimantan. Subject to, among other
things, government approval, upon ExxonMobil acquiring its
participating interest in one or more of such existing and potential
PSCs, ExxonMobil will farm out/assign 50% of its participating
interest to CBM Asia.
"The Barito Basin holds approximately 100 Tcf of in-place(1) CBM
resources based on industry estimates," states CBM Asia Chairman
Scott Stevens. "Deep coal deposits there are exceptionally thick,
laterally continuous, gas-charged and have very simple structural
conditions. Regional urban centers and the extensive coal mining
industry provide near term gas monetization opportunities, while the
coastal location near Banjarmasin and the Bontang LNG facility offers
access to north Asian markets. CBM Asia considers the Barito Basin to
be one of the world's best undeveloped CBM basins."
"CBM Asia's management and technical teams have developed excellent
working relationships with ExxonMobil during the past several
months," notes CBM Asia President and CEO Alan T. Charuk. "We believe
ExxonMobil and CBMA will combine technical and financial strength
with efficient operations to effectively develop these Barito and
Kutai Basin CBM opportunities. The Barito Basin PSC's farm-ins and
the potential Kutai Basin PSCs will result in a material increase in
our Indonesian acreage position and potential recoverable resource.
We now look forward to executing the operational phase of our
strategy while farming out interests in certain majority owned PSCs
to reduce our forward capex requirements."
(1) Society of Petroleum Engineers Paper 88630 (not NI 51-101
BPMigas. On November 13, 2012, Indonesia's Constitutional Court
disbanded Indonesia's upstream oil & gas regulator BPMigas.
Immediately following the Constitutional Court's ruling, Indonesian's
President Susilo Bambang Yudhoyono issued a Presidential regulation
and two ministerial decrees establishing SKSPMigas under the
supervision of the Ministry of Energy and Mineral Resources (MEMR) to
assume the functions of a regulator until a new, permanent body is
formed under a planned revision of the 2001 Oil and Gas Law or until
the formulation of a new law. In public statements the President
assured foreign investors that all existing production sharing
contracts (PSCs) will be honored. CBM Asia's operations in Indonesia
continue as normally.
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".
ON BEHALF OF CBM ASIA DEVELOPMENT CORP.
Alan T. Charuk, President & CEO
The gas in place estimates referred to herein 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 proposed 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
second quarter 2012 interim MD&A dated August 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. 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 Corp.
President & CEO
(604) 684-2340 or (866) 504-4755
Micro Cap et al
1 877 642 7622
Press spacebar to pause and continue. Press esc to stop.