NEWS RELEASE CBM Asia Development Corp (C-TCF) - News Release
CBM Asia's CBM-KW-02 well at up to 265 scf/t gas
2012-04-24 08:20 ET - News Release
Shares issued 155,085,601
TCF Close 2012-04-23 C$ 0.185
Mr. Scott Stevens reports
CBM ASIA REPORTS SIGNIFICANT INCREASE IN GAS CONTENT RESULTS OF 234 TO 265 SCF/TON AT KUTAI WEST PSC
CBM Asia Development Corp. has been informed by the operator Newton Energy Capital Ltd. that final gas content lab reports have been completed for the first coalbed methane exploration test well (CBM-KW-02) at the Kutai West coalbed methane production sharing contract block, located in East Kalimantan, Indonesia. CBM Asia holds an 18% working interest in the Kutai West CBM PSC.
"These final gas content results are significantly above our expectations," noted Scott Stevens, Chairman of CBM Asia. "We look forward to confirming these results in the second CBM test well currently being drilled. As mentioned in our previous press release the test results are supported by Dart Energy's exploration results at the Sangatta West PSC to the north and VICO's Sanga-Sanga PSC which lies adjacent to the east."
Independent Australian-based contractor GeoGAS desorbed a total of 17 samples from the CBM-KW-02 well. Gas content of pure coal samples (ash content less than 15%) ranged from 7.31 to 8.27 m3/tonne (234 to 265 scf/ton), when reported on a dry, ash-free basis. Gas quality was excellent, averaging 96% methane (CH4) with less than 3% CO2 and other inerts. Sorption isotherm data indicate the coals are close to saturated with methane.
On March 15, 2012 the drilling rig spud the second of four planned core wells at the Kutai West PSC and is currently drilling ahead below 500 meters. CBM Asia notes that VICO Indonesia, operated by BP and ENI, as well as the Indonesian government have reported that commercial CBM production began in March 2011 from the adjoining Sanga-Sanga PSC and is being exported from the Bontang LNG facility to North Asian consumers.