Welcome!

News Feed Item

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

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 Gross
Category                        (100 Percent)        (18% working interest)
---------------------------------------------------------------------------
                                                                           
Low Estimate                          2,303.2                         414.6
Best Estimate                         3,915.6                         704.8
High Estimate                         5,829.9                       1,049.4

Gas volumes are expressed in billions of cubic feet (Bcf) at standard temperature and pressure bases.

Important Notes


1.  A Production Sharing Contract (PSC) between CBM Asia, its partners and
    the Indonesian Government executed for Kutai West gives CBM Asia and its
    partners the right to explore for coalbed methane. If a commercial
    discovery is made, CBM Asia and its partners have the right to develop
    and produce from Kutai West. CBM Asia holds an 18% participating
    interest in the Kutai West PSC.

2.  The above prospective resources have been estimated using probabilistic
    methods and are dependent on a CBM discovery being made. If a discovery
    is made and development undertaken, the probability that the recoverable
    volumes will equal or exceed the unrisked estimated amounts is 90% for
    the low estimate, 50% for the best estimate, and 10% for the high
    estimate.

3.  Prospective resources are those quantities of petroleum estimated, as of
    a given date, to be potentially recoverable from undiscovered
    accumulations by application of future development projects. Prospective
    resources have both an associated chance of discovery and a chance of
    development. The chance of commerciality is the product of these two
    risk components. There is no certainty that any portion of the
    prospective resources will be discovered. If discovered, there is no
    certainty that it will be commercially viable to produce any portion of
    the prospective resources. Prospective gas resources are undiscovered
    resources and represent exploration opportunities and quantify the
    development potential in the event a petroleum discovery is made and
    should not be construed as reserves or contingent resources.

4.  Unrisked prospective resources for CBM prospects are estimated ranges of
    recoverable gas volumes assuming their discovery and development and are
    based on estimated ranges of in-place volumes. Geologic risking of
    prospective resources addresses the probability of success for the
    discovery of a significant quantity of potentially moveable petroleum;
    this risk analysis is conducted independent of estimations of petroleum
    volumes. For CBM prospects, principal geologic risk elements include
    coal quantity, gas content, and coal permeability. Development risking
    of prospective resources for CBM accumulations should include
    consideration of whether the entire area addressed by the assessment can
    and will be developed; this component is generally unique to CBM
    prospects because of the thickness and areal extent and wide variability
    in rock, gas content, and production characteristics across that areal
    extent. For CBM prospects, principal development risk elements are
    reservoir quality across the evaluated acreage, development and
    application of technology needed to commercially produce the acreage,
    the ability to depressure the reservoir over a reasonable period of
    time, project commercial conditions (financial, marketing, legal,
    social, and governmental factors), and a reasonable expectation of a
    commitment to develop the acreage. 

Geologic and development risk factors for the Kutai West PSC are shown in
the following table:

                                                                            
                               Prob-                       Probab-   Overall
                             ability                         ility   Probab-
                                  of                            of  ility of
         Discovery            Disco-     Development      Develop-   Commer-
        Risk Factor             very    Risk Factors          ment   ciality
         (Percent)         (Percent)      (Percent)      (Percent) (Percent)
                                                                            
                      Coal                 Gas                              
Coal         Gas     Perm-             Produc-  Economic                    
Quantity Content  eability             ibility  Recovery                    
----------------------------------------------------------------------------
100          100        80        80        70        90        63        50

5.  For a further discussion of the risks and uncertainties associated with
    the recovery of unrisked prospective resources and other significant
    factors relevant to the above estimates, please refer directly to NSAI's
    technical report entitled "Estimates of Prospective Resources to the CBM
    Asia Development Corporation Interest in Certain Coalbed Methane
    Properties located in the Kutai West Block Kutai Basin, Indonesia as of
    December 31, 2012" filed on SEDAR at www.sedar.com and posted on the
    Company's website at www.cbmasia.ca.

ABOUT CBM ASIA DEVELOPMENT CORP.

CBM Asia Development Corp. is a Canadian-based unconventional gas company with significant coalbed methane ("CBM") exploration and development opportunities in Indonesia. The Company holds various participating interests in five production sharing contracts (each a "PSC") for CBM in Indonesia, with the right to farm-into 4 additional PSCs. Indonesia has one of the largest CBM resources in the world with a potential 453 trillion cubic feet in-place(3), more than double the country's natural gas reserves (Stevens and Hadiyanto, 2004). Since 2008 a total of 54 CBM PSCs have been granted by the Government of Indonesia, representing exploration commitments of well over US$100 million during the next 3 years. In addition to CBM Asia, other companies active in CBM exploration in Indonesia include BP, Dart Energy, ENI, ExxonMobil, Medco, Santos, and TOTAL. BP, ENI, and the Indonesian government have confirmed that commercial CBM production started in March 2011 from the Sanga-Sanga PSC and is being exported from the Bontang LNG facility. The Company trades on the TSX Venture Exchange under the symbol "TCF".www.cbmasia.ca

ON BEHALF OF CBM ASIA DEVELOPMENT CORP.

Alan T. Charuk, President & CEO

(1) This figure includes 4 existing PSCs in the Barito basin, South Kalimantan to which the Company has the right to farm into under its joint venture agreement with ExxonMobil announced December 20, 2012.

(2) See the Company's news release of January 9, 2013 for further details regarding the Company's 15 Tcf resource target.

(3) Society of Petroleum Engineers Paper 88630 (not NI 51-101 compliant). These gas in place estimates have not be classified as "discovered petroleum initially-in-place" within the meaning of the Canadian Oil & Gas Evaluation Handbook (COGE Handbook). The term "discovered petroleum initially-in-place" is equivalent to discovered resources, and is defined in the COGE Handbook to mean that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. There are no assurances that any portion of the estimated gas in place resources will be discovered. Furthermore, the above estimates make no allowance for the recovery of the gas which will depend on, among other things, the reservoir characteristics encountered and future economic conditions.

This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. Specifically, the farm-in arrangement with ExxonMobil referred to herein is subject to, inter alia, the negotiation and execution of formal agreements, governmental and third party approvals, satisfactory due diligence and available financing. There are no assurances that the Company will be successful in entering into formal agreements with ExxonMobil on commercially acceptable terms or at all. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those made in our Canadian continuous disclosure filings available on SEDAR at www.sedar.com including our December 31, 2011 year end annual MD&A dated April 26, 2012 and third quarter 2012 interim MD&A dated November 28, 2012. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...
Existing Big Data solutions are mainly focused on the discovery and analysis of data. The solutions are scalable and highly available but tedious when swapping in and swapping out occurs in disarray and thrashing takes place. The resolution for thrashing through machine learning algorithms and support nomenclature is through simple techniques. Organizations that have been collecting large customer data are increasingly seeing the need to use the data for swapping in and out and thrashing occurs ...
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that’s no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, will explore how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He wi...
In his session at @ThingsExpo, Arvind Radhakrishnen discussed how IoT offers new business models in banking and financial services organizations with the capability to revolutionize products, payments, channels, business processes and asset management built on strong architectural foundation. The following topics were covered: How IoT stands to impact various business parameters including customer experience, cost and risk management within BFS organizations.
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics ...
Given the popularity of the containers, further investment in the telco/cable industry is needed to transition existing VM-based solutions to containerized cloud native deployments. The networking architecture of the solution isolates the network traffic into different network planes (e.g., management, control, and media). This naturally makes support for multiple interfaces in container orchestration engines an indispensable requirement.
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, will discuss th...
yperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let’s say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it....
SYS-CON Events announced today that App2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. App2Cloud is an online Platform, specializing in migrating legacy applications to any Cloud Providers (AWS, Azure, Google Cloud).
Recently, IoT seems emerging as a solution vehicle for data analytics on real-world scenarios from setting a room temperature setting to predicting a component failure of an aircraft. Compared with developing an application or deploying a cloud service, is an IoT solution unique? If so, how? How does a typical IoT solution architecture consist? And what are the essential components and how are they relevant to each other? How does the security play out? What are the best practices in formulating...
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single-threaded, you can effectively identify hot spots in your serverless code. In his session at @DevOpsSummit at 21st Cloud Expo, Dave Martin, Product owner at CA Technologies, will give a live demonstration and code walkthrough, showing how ...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...