Second Exploration Well Encounters 32 Meters of Net Coal
At Kutai West PSC
VANCOUVER, BRITISH COLUMBIA, April 27, 2012 – CBM Asia Development Corp. (“CBM Asia” or the “Company”) (TSX.V TCF), (US: CBMDF) (FWB: IY2) has been informed by the operator Newton Energy Capital Limited that the second exploration well (CBM-KW-01) at the Kutai West Coalbed Methane Production Sharing Contract (“Kutai West CBM PSC”) block has reached target depth of 900 meters. Approximately 32 meters of net coal were encountered. CBM Asia holds an 18% working interest in the Kutai West CBM PSC, which is located in East Kalimantan, Indonesia, close to the Bontang LNG export facility.
“We are encouraged by the results of the CBM-KW-O1 well so far,” comments Alan Charuk, President and CEO of CBM Asia. “The net coal thickness of 32 meters is 28% thicker than net coal thickness of 25 meters found at the CBM-KW-02 well which we recently released results on. We look forward to receiving gas content results from core samples over the upcoming weeks.”
The drilling rig is expected to be demobilized from the CBM-KW-01 site once permeability tests have been completed. The rig will then move to the third location to drill the CBM-KW-04 exploration well which is located approximately halfway between CBM-KW-01 and CBM-KW-02. The Kutai West PSC is directly west of VICO’s Sanga-Sanga CBM PSC, which has been producing CBM for export from the Bontang LNG facility to North Asian consumers since March 2011. The Indonesian government recently announced that Sanga-Sanga CBM will earn USD7.50/Mcf for gas to be sold to local power producers.
