CBM Asia Webcast, ExxonMobil Joint Venture, 2012 Recap and 2013 Work
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/07/13 -- CBM Asia
Development Corp. ("CBM Asia" or the "Company") (TSX
VENTURE:TCF)(US:CBMDF)(FRANKFURT:IY2) announces that its Chairman,
Scott Stevens will host a conference call and live webcast for
analysts and investors on Thursday, January 10, 2013 at 1:15 p.m.
Pacific Daylight Time (4:15 p.m. Eastern Time) to discuss the impact
of the partnership with ExxonMobil and the outlook for 2013.
Conference Call Numbers:
Canada & USA Toll Free Dial In: 1-800-319-4610, UK Toll Free
0808-101-2791, local Vancouver 604 638 5340 or Outside Canada, USA or
the UK Call: 1-604-638-5340.
The call is being webcast and can be accessed at CBM Asia's website
at http://www.cbmasia.ca/ or enter the following URL into your web
Questions will be accepted any time in advance up to the conclusion
of the formal part of the presentation. Should you have questions
that you would like addressed during the Q&A portion of the Web Cast
please email your questions to firstname.lastname@example.org.
CBM Asia-ExxonMobil Joint Venture Background
On December 20, 2012 CBM Asia announced it signed a farm-in joint
venture agreement with ExxonMobil. The final terms and conditions of
the proposed farm-in remain subject to negotiation and execution of
formal agreements between ExxonMobil and CBM Asia as well as, among
other conditions, government approvals. Under the farm-in joint
venture agreement the Company will acquire a 35% to 37.5%
participating interest in four existing PSCs (Banjar I PSC, Banjar II
PSC, Barito I PSC and Tapin PSC) in the Barito Basin, South
Kalimantan. The total gross area of the four PSCs is approximately
4,258 km2 or 1.0 million acres. CBM Asia considers the Barito Basin
to be the largest and best undeveloped CBM exploration opportunity in
the world, with an industry gas-in-place estimate of 102 Tcf(1).
Details of the farm-in joint venture include:
-- CBM Asia will provide assistance to drill and conduct two 5-well
production pilots at its sole cost: one in the Banjar II PSC and the
second in the Barito I PSC. CBM Asia and ExxonMobil will complete
remaining exploratory drilling obligations under the applicable Firm
Commitment work programs for the Banjar I, Banjar II and Barito I PSCs,
sharing costs equally. CBM Asia will fulfill its farm-in commitment on
completion of these pilots and exploratory drilling. CBM Asia estimates
the total cost of the farm-in commitment to be USD15 million, with most
expenditures expected to occur over a period of approximately 12 months
starting in June 2013.
-- Depending on the results of the planned 5-well production pilots in the
Banjar II and Barito I PSCs, CBM Asia will have the option to
participate in completion of the Tapin PSC Firm Commitment work program,
paying 50% of the Firm Commitment work program costs.
-- The CBM Asia ExxonMobil farm-in joint venture also provides the
potential opportunity for CBM Asia to participate alongside ExxonMobil
in three existing PSCs and future PSCs tendered by the Government of
Indonesia in the area of three completed Joint Studies in the Kutai
Basin, East Kalimantan. The total gross area of the six PSCs/Joint
Studies is approximately 8,859 km2 or 2.2 million acres. Subject to
government approval and upon ExxonMobil acquiring its PI in one or more
of such existing and future PSCs, ExxonMobil will farm out/assign 50% of
its PI to CBM Asia. All exploration costs will be split evenly between
CBM Asia and ExxonMobil. Subject to Government of Indonesia approval,
CBM Asia will act as nominee operator.
1. Society of Petroleum Engineers Paper 88630 (not NI 51-101
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.
(604) 684-2340 or (866) 504-4755
Micro Cap et al
1 877 642 7622
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