VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 01/09/13 — CBM Asia Development Corp. (“CBM Asia” or the “Company”) (TSX VENTURE: TCF)(US: CBMDF)(FRANKFURT: IY2) wishes to clarify certain statements made in its news release of January 2, 2013 recapping its operations for 2012. The Company stated that based on recent acreage acquisitions and well testing it was increasing its target of establishing net recoverable gas from its existing acreage positions to 15 TCF (2.5 billion barrels of oil equivalent)(1). The Company wishes to clarify that such figure represents the Company–s target goal and does not constitute an actual estimate of resources for its current acreage. Furthermore, such target should be expressed in terms of “recoverable unrisked prospective resources” rather than “net recoverable gas”.
To date, the Company has commissioned two independent evaluations of its resource potential; the first for its Sekayu production sharing contract in South Sumatra, Indonesia (the “Sekayu PSC”) and the second for the Kutai West PSC in East Kalimantan.
On November 2, 2011, the Company reported that Texas-based Netherland, Sewell & Associates, Inc. (NSAI) had prepared a resource assessment of the Sekayu PSC in accordance with Canadian National Instrument 51-101 (“NI 51-101”) and the COGE Handbook as of September 30, 2011 as follows:
The Company holds a 26% participating interest in the Sekayu PSC resulting in recoverable unrisked net prospective gas resources attributable to the Company–s interest of 276,115 MMcf (best estimate), 82,953 MMcf (low estimate) and 534,629 MMcf (high estimate) as of September 30, 2011.
The second evaluation for the Kutai West PSC, also being prepared by NSAI, is expected to be available in the first quarter of 2013.
Where appropriate data is available, additional qualified independent resource estimates may be commissioned this year. The Company points out that its participating interest in the Sekayu PSC represents only a very small percentage (i.e. less than 3%) of the Company–s current total net coalbed methane acreage in Indonesia of approximately 1.25 mn acres (not including certain options and rights to acquire up to an additional 2.13 mn net acres of land).
The Company also cautions that the above-noted target was not prepared by a qualified reserves evaluator within the meaning of NI 51-101 and there are no assurances that the Company will be successful in achieving such target, in whole or in part.
Important Notes
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. Indonesia has one of the largest CBM resources in the world with a potential 453 trillion cubic feet in-place(2), 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”.
ON BEHALF OF CBM ASIA DEVELOPMENT CORP.
Alan T. Charuk, President & CEO
For further information on CBM Asia Development Corp., visit our website at .
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. The economics of exploring, developing and operating resource properties are affected by many factors including, but not limited to, the cost of exploration and development operations, conclusions of economic evaluations, unexpected formations or pressures, premature declines in reserves, potential environmental damage, blow-outs, fires, variations in the amount and saturation of CBM contained in individual coal seams and the rate of production therefrom, fluctuations in gas prices and the availability of capital. There are no assurances that the Company–s work programs will result in the discovery of commercially viable or economically producible properties. 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 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.
Contacts:
CBM Asia Development Corp.
Alan Charuk
President & CEO
(604) 684-2340 or (866) 504-4755
(604) 684-2474 (FAX)
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