CBM Asia (CBMDF)

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Fourth Quarter 2011: Investor Update

VANCOUVER, BRITISH COLUMBIA, October 21, 2011 - CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX.V: TCF) (US: CBMDF) (FWB: IY2) provides an update on the Company’s achievements year to date as well as planned developments for the fourth quarter 2011.
CBM Asia’s Chairman Scott H. Stevens noted, “today the Company has a stronger position in Indonesia’s commercializing CBM industry, as a result of better-than-expected well testing results at the Sekayu Production Sharing Contract (PSC) in South Sumatra, substantial increases in the Company’s net acreage with the acquisition of two additional PSC’s which we will operate, and the establishment of a strong Asian investor base from Hong Kong, Singapore, South Korea and Thailand. We anticipate that resource assessments on the Company’s Indonesia CBM holdings will be finalized early in the fourth quarter of 2011.”

Fourth Quarter 2011 Development Plans
Resource Estimates: The Company has received notice from Netherland, Sewell & Associates, Inc (NSAI) that the final report on the Sekayu PSC original gas in place and prospective resource estimates will be ready in approximately three weeks.
The Company has hired Resource Consulting International (RCI) of Colorado to conduct a resource estimate compliant with Canadian standards on Kutai West PSC, Hulu PSC and Besar PSC. A Company director will be leading the RCI report.

Sekayu PSC Production Pilot: as discussed in previous Company news releases the Sekayu coring and production test program in South Sumatra has yielded better-than-expected results in all key factors for CBM development; coal thickness, gas content, permeability, and rapid gas-to-surface. As a result, our operating partner Medco Energi has decided to accelerate the production pilot program to demonstrate commerciality. Drilling is anticipated to begin early in 2012. The 2012 work program also includes completing the coring and dewatering at CBM-SE01. Budget approval for this program is expected by the end of October.

The Sekayu PSC has been amended to allow for early sales of test gas, anticipated sometime in 2012, ahead of full-scale commercial development. The Company believes the pilot production program will establish the Company’s first proved reserves and sales revenues, while further defining the block’s overall recoverable resource potential.

Kutai West PSC First Well: The Kutai West PSC in East Kalimantan lies directly adjacent to the Sanga- Sanga PSC, where VICO (owned by BP and ENI) recently reported commercial CBM production began in March 2011. VICO, which is exporting its produced CBM to Japan from the Bontang LNG facility, estimated CBM resources at Sanga Sanga to be 13 Tcf (non 51-101 compliant). At Kutai West the Company’s operating partner is currently preparing locations and planning to spud its first CBM core well during the fourth quarter 2011.
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Exploration of Newly Acquired Acreage: CBM Asia acquired a 70% participation interest in an additional 3,913 km2 (2,793 km2 net) during the third quarter of 2011, becoming operator of the Hulu PSC in Central Sumatra and the Besar PSC in East Kalimantan. During the coming months the management team will submit an exploration plan to BPMIGAS to be executed starting the second quarter of 2012.
Jakarta Office Opening: the Company is finalizing lease arrangements and expects to open its Jakarta office next month and begin hiring a core local operations staff to help design and execute the Hulu and Besar PSCs exploration programs.