VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/31/13 -- CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX VENTURE: TCF)(US: CBMDF)(FRANKFURT: IY2) announces 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):
1. 3,915 Bcf of gross unrisked prospective gas resources (705 Bcf net).2. Estimated 80% probability of geological discovery.3. 50% overall probability of commerciality including geological and development risks.4. Gas content of 300 scf/ton (dry, ash-free basis).
Note: Prospective resource estimates are not proven reserves or contingent resources. Please see further notes below for important disclosures on risks.
"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's 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 (1), supporting our 15-Tcf target (2) in Indonesia.
Mr. 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."
Kutai West PSC: Resource Estimate
Texas-based Netherland, Sewell & Associates, Inc. (NSAI) prepared the resource assessment of the Kutai West PSC as of December 31, 2012 in accordance with Canadian NI 51-101 standards and the COGE Handbook. NSAI has prepared numerous resource studies for CBM operators in Australia, China, Indonesia and other countries. Please see notes below for important disclosures on risks.
NSAI estimates the unrisked gross (100%) prospective gas resources and unrisked gross prospective gas resources to CBM Asia's interest in the Kutai West PSC as of December 31, 2012 as follows:
Unrisked Prospective Gas Resources (Bcf) Gross CBM Asia GrossCategory (100 Percent) (18% working interest)---------------------------------------------------------------------------Low Estimate 2,303.2 414.6Best Estimate 3,915.6 704.8High Estimate 5,829.9 1,049.4
Gas volumes are expressed in billions of cubic feet (Bcf) at standard temperature and pressure bases.