CBM Asia announces joint acquisition deal in Kutai Basin

Vancouver-based coal-bed methane (CBM) developer CBM Asia Development Corp. announced on Wednesday that it has entered into a Joint Acquisition Agreement with Newton Energy CBM Limited and Ephindo IIthabi CMB Holding Inc., to participate jointly in the evaluation of prospective CBM resources in the 56,300 hectare Kutai II Block in the Kutai Basin, East Kalimantan.

CBM Asia will hold 28 percent participating interest.

The Kutai II Joint Acquisition Agreement outlines the responsibilities of participating members in conducting a Joint Evaluation Study of the Kutai II Block and submitting an application for a Production Sharing Contract (PSC) to the Director General of Oil and Gas. The Kutai II Block is adjacent to the existing Kutai-West PSC of which Newton, CBM Asia and Ephindo share interests, the Company said.(alex)