Send PM
Followers 41
Posts 3195
Boards Moderated 0
Alias Born 05/15/2010

Re: None

Wednesday, 01/25/2012 1:27:42 PM

Wednesday, January 25, 2012 1:27:42 PM

Post# of 136
CBM Asia Announces Heads of Agreement to acquire Prospective Coalbed Methane PSC in Kalimantan, Indonesia

CBM Asia Development Corp. TCF
1/25/2012 1:00:00 PM
CBM Asia Announces Heads of Agreement to acquire Prospective Coalbed Methane PSC in Kalimantan, Indonesia
CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX.V: TCF) (US: CBMDF) (FWB: IY2) announces that it has signed a Heads of Agreement (“Agreement”) with PT Tranaco Utama (“Tranaco”), a private Indonesian company that holds the first rights to undertake a production sharing contract (“PSC”) for a 1,500 square kilometre coalbed methane block in Kalimantan, Indonesia.
Under the terms of the Agreement, CBM Asia has the right to acquire 80% participation interest in the proposed coalbed methane PSC and be appointed operator (with Tranaco to hold the remaining 20% participation interest) in consideration for reimbursing Tranaco’s sunk costs and paying any signing bonus to the Indonesian government upon the award of a PSC. On January 18, 2012, CBM Asia and Tranaco submitted a proposal to the Director General of Oil and Gas (“Migas”) to approve the award of a coalbed methane PSC through the Direct Offer Mechanism under Ministerial Regulation of the Department of Energy and Mineral Resources. The proposal is based on a Joint Evaluation Study undertaken by Tranaco in 2011.
“This Agreement represents the advancement of our business strategy to materially expand our land position in Indonesia where, in 2011, we acquired a 70% participating interest and operatorship in the Bentian Besar CBM PSC and the Hulu CBM PSC,” commented Mr. Alan T. Charuk, CBM Asia’s CEO and President, “There are a number of coalbed methane PSCs in proximity to the block area operated by Exxon Mobil and BP.”

It's all happened before and it will all happen again. Might as well profit from it.