CBM Asia Development Corp. (TSXV:TCF,FWB:IY2) reported highlights from 2012 on its coalbed methane properties in Indonesia: gross acreage holdings increased to 2.45 million acres, 6 CBM test wells drilled and tested measuring higher-than-expected gas content at the Kutai West PSC (Production Sharing Contract) in East Kalimantan, and a Joint-Venture Agreement to farm into ExxonMobil’s Barito Basin CBM blocks as well as potential PSCs and Joint Studies in the Kutai Basin.
As quoted in the press release:
2012 Recap: This truly has been an exciting year for CBM Asia:
- Material CBM Acreage Position. CBM Asia acquired material positions in key coalbed methane (CBM) basins in Indonesia, which the Company considers to be in the final stages of Indonesia’s CBM industry land grab. Our gross acreage holdings increased to 2.45 million acres (1.25 mn net), up significantly from 0.69 million acres (0.31 mn net) held at year-end 2011. The company also acquired the optionality to acquire a further gross 4.1 million acres (2.13 mn net).
- Successful Six-Well De-risking Program. CBM Asia and its partners drilled and tested a total of 6 CBM test wells during 2012 measuring higher-than-expected gas content at the Kutai West PSC (Production Sharing Contract) in East Kalimantan. We also began to dewater 2 test production wells at the Sekayu PSC in South Sumatra, with steadily increasing and encouraging rates of gas desorption.
- Partnership with ExxonMobil. CBM Asia signed a Joint-Venture Agreement to farm into ExxonMobil’s Barito Basin CBM blocks as well as potential PSCs and Joint Studies in the Kutai Basin. We are currently reviewing Joint Operating Agreements (JOAs) and other instruments governing the individual PSCs. Subject to government approval, we expect to play a leading role in drilling operations during 2013. This partnership has the potential to transform the Company.
- Larger 15 Tcf Gas Resource Target. Based on the successful acreage acquisition and well testing, CBM Asia now targets the goal of proving up 15 Tcf of net recoverable gas (2.5 billion barrels of oil equivalent) from its existing acreage positions, up from our previous target of 10 to 15 Tcf. We continue to seek very low exploration costs in the range of USD0.01/Mcf, far below the current range of natural gas sales prices in Indonesia (USD6.00 up to USD15.00/Mcf).
- Institutional Shareholder Base. CBM Asia shareholders register now includes, for the first time, large financial institutions from Hong Kong, New York, London and Toronto providing long-term support and stability.
- Indonesia Operations Office. CBM Asia’s Indonesian operations office in Jakarta opened in April 2012. In-country staff now totals 16, including 12 operational (geologists and engineers) and 4 administrative. Keith Potter, General Manager and President Director (CEO) of the Company’s Indonesian operations, has extensive CBM experience (Australia and Indonesia) and has worked in Indonesia for 12 years. As exploration and operations management have shifted to Indonesia the Vancouver office has been downsized to two employees to handle only headquarter administrative functions.