Mr. Alan Charuk reports
CBM ASIA DEVELOPMENT CORP. PROVIDESUPDATE OF ITS SEKAYU COALBED METHANE (CBM) PROJECT
CBM AsiaDevelopment Corp. has provided an update of its Sekayu coal bed methane(CBM) project in South Sumatra, Indonesia.
Jakarta-based PT Medco CBM Sekayu (MedcoEnergi), a wholly ownedsubsidiary of PT Medco Energi CBM Indonesia, is the operating partner ofthe Sekayu production-sharing contract, in which CBM Asia holds,indirectly, the right to earn an initial 12-per-cent interest.MedcoEnergi has notified the company that it has successfully drilledthe upper portion and set seven-inch casing in all three new CBM testwells (CBM-SE-01, -03 and -04).
At present, MedcoEnergi is in the process of procuring the services of awireline-coring tool that will sample the coal section of the threewells for gas content and permeability testing, planned for February,2011. Core Laboratories NV has been contracted to conduct the gascontent sampling and analysis on site. Weatherford International Ltd.has been contracted to perform the coreless critical desorption pressuretesting, while the permeability testing will be conducted by Medco.Production testing (dewatering) on the previously drilled CBM SE-02 willbe scheduled in February, 2011.
Once the new CBM reservoir data become available, most likely during thesecond quarter of 2011, the company plans to engage the services of aqualified reserves evaluator to audit the CBM resources at the block,based on National Instrument 51-101 -- Standards of Disclosure for Oiland Gas Activities. The reservoir data and the dewatering well will alsohelp guide the design of the CBM production pilot which, contingentupon positive results, is planned for the second half of 2011.
CBM Asia's newly appointed chairman, Scott H. Stevens, noted:"Indonesia's CBM industry is progressing, with over 20production-sharing contracts awarded thus far to major oil and coalcompanies and their partners. The four-well reservoir testing operationat Sekayu is an important milestone for demonstrating gas resources andproducibility at this highly prospective PSC, the first CBM licence tobe awarded in Indonesia."
We seek Safe Harbor.