CBM Asia clarifies 15 TCF target

By Peni Pedriawan

Canada-based firm CBM Asia Development Corp (CBM Asia) 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).

The company said in a press statement on Wednesday that such figure represents its 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 (Sekayu PSC), and the second for the Kutai West PSC in East Kalimantan.

The Company holds a 26 percent 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 (less than 3 percent) of its 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.

Editing by Benget Besalicto Tnb.