CBM Asia Operational Update
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/22/13 -- CBM Asia
Development Corp. ("CBM Asia" or the "Company") (TSX VENTURE:TCF),
(US:CBMDF) (FRANKFURT:IY2) provides an operational update on its
coalbed methane (CBM) properties in Indonesia.
-- ExxonMobil Joint Venture. CBM Asia and ExxonMobil have agreed to extend
the Umbrella Agreement signed on December 19, 2012. Both companies are
engaged in amending certain terms of the agreement and the Company with
approval from ExxonMobil will announce details in the near future.
"Our confidence in the commercial viability for CBM in Kalimantan is
high and we look forward to success in the coming drilling season,"
states Alan Charuk, President and CEO of CBM Asia Development Corp. "We
expect to be able to release full details of the contract amendment in
the near future."
-- Sekayu PSC. On May 23, 2013 Medco Energi, the operator of Sekayu PSC,
resumed production testing at the CBM-02 well, installing a new high-
capacity submersible pump. The well is producing a steady 3,000 bbl/day
of potable-quality formation water from the Miocene-age Palembang coal
seams. Gas production was initiated almost immediately and is increasing
as the well dewaters. Gas produced from the well is being consumed on
site to drive the downhole pump.
Coring operations have been completed at the CBM-01 well. The Company is
awaiting final gas content and coal analysis reports. 4 1/2" casing has
been run, cemented and perforated adjacent to the Palembang C coal seam
at a depth of 1,380 - 1,404 feet.
"The rapid gas production to surface exhibited by the CBM-02 well
confirms the high gas saturation previously measured on the Sekayu block
and is consistent with results achieved by other CBM operators in the
South Sumatra Basin", noted CBM Asia's Chairman Scott H. Stevens. "These
well tests provide information needed to optimize the multi-well pilot
design, which is expected to more effectively dewater the coal seams and
achieve higher gas flow rates along with commercial production.
-- Kutai West PSC. Newton Energy, the operator of the Kutai West PSC, plans
to begin completion and stimu
lation operations on four coal seams in the
KW-CBM-01 well in September 2013. Dewatering at this location will
follow pending the results of the stimulation program.
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
ON BEHALF OF CBM ASIA DEVELOPMENT CORP.
Alan T. Charuk, President & CEO
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.
The gas in place estimates referred to herein have not been
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, there are no assurances that the Company will
be successful in negotiating amendments to the current umbrella
agreement with ExxonMobil on terms satisfactory to the Company or at
all. In addition, the proposed farm-in arrangement with ExxonMobil
contemplated in the umbrella agreement 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, 2012 year end annual MD&A dated April 24, 2013 and first
quarter 2013 interim MD&A dated May 29, 2013. 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.
CBM Asia Development Corp.
(604) 684-2340 or (866) 504-4755
Micro Cap et al
1 877 642 7622
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