CBM Asia gets offer to fund CBM projects

By Ruli Setiawan

CBM Asia Development Corp. reported that it has received preliminary offers from institutional investors and regional oil & gas companies for multi-year financing schemes that would fund the exploration phases of its coal bed methane (CBM) project in Indonesia.

The company said in a press statement on Wednesday that it is currently supporting the respective due diligence and expects the process to take several more weeks to be concluded.

The management team and the board of directors are evaluating the terms and conditions of each offer and will make further announcements in due course.

Previously, early in March the company announced a non-brokered private placement of up to 71,428,572 shares at a price of C$0.21 per share for gross proceeds of up to C$15 million.

The company said that the funds raised from this private placement will be invested directly into the Barito Basin and Central Sumatra Basin production drilling with the goal of achieving first production by year-end, a critical milestone for CBM Asia.

Editing by Benget Besalicto Tnb.