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CBM Asia Development Corp. (TSXV:TCF,US:CBMDF,FWB:IY2) provided an update on recent testing activities at the Kutai West PSC, signed a Memorandum of Understanding (MOU) with PT Navigat Energy, and arranged a $3.8 million non-brokered private placement.
As quoted in the press release:
Kutai West Test Results. The Company in collaboration with operator Newton Energy reports the following operational results from the KW-CBM-1 well in the Kutai West PSC, East Kalimantan. Service contractor Halliburton has conducted DFIT (mini-frac) reservoir tests on four coal seam intervals to measure permeability and pore pressure. Halliburton then successfully pumped hydraulic stimulations as designed into the four coal seam intervals. The rig has been released and a progressive cavity pump has been installed in the well for long-term production testing.
Gas-to-Power MOU. CBM Asia signed a Memorandum of Understanding (MOU) with PT Navigat Energy to supply up to 5.0 MMscf/d of coalbed methane from its planned production pilot(s) to gas engine power generation project(s) in the Barito Basin, South Kalimantan, Indonesia. The two parties will proceed to negotiate with PT PLN (Persero), Indonesia’s state power supplier, on the sale of power and gas. CBM Asia’s role will be limited to gas producer and supplier.
Private Placement. The Company has received subscriptions and funds totaling approximately CAD250,000 for the CAD3.8 million private placement announced on November 25, 2013 and is in the process of execution. The CAD517,734 management tranche announced on August 26, 2013 is fully subscribed with all funds received. The management tranche has been transferred to the new Private Placement and will be executed following public disclosure of the conclusion on the ExxonMobil Umbrella Agreement amendment and TSX-V acceptance.
CBM Asia Development Corp. President and CEO, Alan Charuk, said:
With the signing of Gas-to-Power MOU and the Gas-to-LNG MOU (signed in September), we have established commercial channels for early monetization of up to 55 MMscf/d from pilot production and beyond under Plan of Developments. The quality of our potential gas offtakers, joint venture partners and their financial supporters will play a major role in our ability to secure project financing for these exciting development programs.
Click here to read the CBM Asia Development Corp. (TSXV:TCF,US:CBMDF,FWB:IY2) press release
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