CBM Asia announces resources estimate for Sekayu PSC

CBM Asia Development Corp. announces that qualified reserves evaluator Netherland, Sewell & Associates, Inc. (NSAI) has completed its coal bed methane (CBM) resource estimate for the Sekayu Production Sharing Contract (PSC) in South Sumatra.

CBM Asia's Chairman Scott H. Stevens said that the estimate - prepared by respected third-party evaluator NSAI - validate the thick coal seams, positive gas content results, and gas-to-surface that the company has recently reported.

Based on these results, the company is assisting operator Medco Energi to plan its pilot production program, with the goal to achieve commercial production in 2012.

The company expects of potentially increasing resources volumes and continuing the process of upgrading the resources to proved reserves status.

"The resource results support CBM Asia's investment target of maximizing our return on exploration investment. Indeed to September 2011 the Sekayu consortium has spent approximately US$9.3 million - inclusive of signature bonus - yielding an estimated 1,062 Bcf of recoverable prospective resources,? said Stevens.

The Sekayu PSC represents only 11 percent of CBM Asia's total coalbed methane net acreage in Indonesia and only 4.5 percent including the extensions under application on the company's new interests in the Hulu and Bentian Besar PSCs.

?We believe CBM Asia's other properties offer a similar return on investment potential and that Resource Consulting International's upcoming resource estimate will provide further insight to the potential scale of the company's overall resource base," Stevens added. (romel)