CBM Asia Adds 705 Bcf of Prospective Resources With Latest NSAI Report

CBM Asia Development Corp.(TSX VENTURE:TCF) has announced that qualified reserves evaluator Netherland, Sewell & Associates Inc. (NSAI) has completed its coalbed methane resource estimate for the Kutai West production sharing contract (PSC) in East Kalimantan, Indonesia. The NSAI technical report can be found on the company's website and on SEDAR.

NSAI's latest appraisal concluded the following key findings under its best estimate (most likely case):

• 3,915 Bcf of gross unrisked prospective gas resources (705 Bcf net).
• Estimated 80% probability of geological discovery.
• 50% overall probability of commerciality including geological and development risks.
• Gas content of 300 scf/ton (dry, ash-free basis).

"The company has established 705 Bcf of net unrisked prospective gas resources near the Bontang LNG facility, which exports natural gas to North Asia at prices in excess of USD12/Mcf," notes CBM Asia chairman Scott H. Stevens. "Combined with NSAI's previous estimate for the Sekayu PSC in South Sumatra of 276 Bcf of net prospective resources, the company's total net unrisked prospective resources from its Kutai West and Sekayu PSC's equals 981 Bcf (4.976 Tcf gross). These two blocks represent just 6.1% (307 km²) of the company's total net acreage position of 5,070 km² within nine PSC's and one joint study, supporting our 15-Tcf target in Indonesia."

Stevens further comments, "Actual exploration costs incurred at the Sekayu and Kutai West PSC's total less than USD0.01/Mcf, far below the current natural gas prices of USD5.50 to 9.40/Mcf in South Sumatra and higher in East Kalimantan near the Bontang LNG facility."

CBM Asia Development Corp. is headquartered in Vancouver, British Columbia.