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Following the announcement regarding development plans of the Kutai West PSC last week, CBM Asia Development Corp. (TSXV:TCF,OTCBB:CBMDF,FWB:IY2) announced a non-brokered private placement of C$11,000,000 secured loans with bonus shares. CBM Asia is also taking steps to reduce general and administrative expenses, reducing staff levels and office sizes for both Vancouver and Jakarta.
As quoted in the press release:
The Company is offering up to 550 Units at a price of CAD$20,000 per Unit for aggregate gross proceeds of up to CAD$11,000,000, subject to the Issuer’s right to increase the size of the Offering at its sole discretion. The Units will be sold directly by the Issuer and through certain dealers, agents and other finders, registered and otherwise.
CBM Asia CEO, Charles Bloomquist, said:
The Company has been under new executive management since late January. In the short time since then, staffing and costs have been substantially reduced and the Company has focused on the development of commercial gas production from the Kutai West PSC. Kutai West is our most significant asset with 705 Bcf of independently evaluated gas resource (net to CBM Asia), is located next to the Sanga-Sanga PSC which is already in commercial production, and offers excellent alternatives for marketing gas at attractive prices in the near term.
Click here to read the CBM Asia (TSXV:TCF) press release
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