CBM Asia (CBMDF)

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CBM Asia Development Corp.: Second Tranche of Private Placement Closed; Appointment of Chief Financial Officer; Corporate Update

April 27, 2011 12:26 PM EDT
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 27, 2011) - CBM Asia Development Corp. (the "Company") (TSX VENTURE: TCF)(US: CBMDF)(FRANKFURT: IY2) announces that further to its news release dated April 8, 2011 it has now closed the second tranche of its non-brokered private placement of common shares announced on March 23, 2011. The Company has issued an additional 452,490 common shares at a price of $0.17 per share for proceeds of $76,923, for a total private placement of 5,732,404 common shares for total gross proceeds of $974,509.

A cash finder's fee of $31,750 was paid and 119,852 common shares at a deemed price of $0.17 per share were issued in connection with this private placement.

The common shares issued pursuant to the second tranche of the private placement and the finder's fee shares are subject to a four month and one day hold period expiring on August 28, 2011.

The Company is pleased to announce that James Hurren has been appointed as the Chief Financial Officer of the Company following his appointment as interim Chief Financial Officer on November 1, 2010. Mr. Hurren has worked in the area of oil and gas for a number of years and has developed expertise in financial management and strategy. He holds an undergraduate degree in accounting from the University of Lethbridge and is currently completing the final stage of his MBA (Finance) at the University of Manchester.

Corporate Update

CBM Asia further announces that the joint acquisition agreement for the application for a coalbed methane production sharing contract ("PSC") over the 56,300 hectare Kutai II block in East Kalimantan, Indonesia (the "Kutai II Block") originally announced on June 23, 2010 has expired. As a result, the Company's participating interest in the potential PSC should revert back from 28% to 40%. However, the Company is currently in dispute with the other interest holder regarding its ownership interest in the Kutai II Block and intends to commence arbitration proceedings in Singapore under the terms of its participation agreement in order to secure the Company's interest in any future PSC for the Kutai II Block and protect the interests of CBM Asia's shareholders.

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 58,349-hectare Sekayu block located in the South Sumatra Basin where 3 exploration wells are currently 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 a 76,000-hectare 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 approximately 25 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, 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