CBM Asia raises more funds for Indonesia projects
Saturday, February 11 2012 - 05:09 AM WIB
Vancouver-based firm CBM Asia Development Corp said it has completed a second closing of its non-brokered private placement for gross proceeds of US$2.94 million. Portion of shares offered through the private placement was purchased by directors and officers of the company.
The company also announces that, subject to Exchange acceptance, it has increased the size of the private placement from $5 million to $10 million. To date, the company has raised $4.23 million through the private placement.
The additional proceeds from the increased offering will be used to, among other things, fund the acquisition and exploration costs of the company's existing coalbed methane projects in Indonesia, identify and, if warranted, acquire new properties and for general working capital purposes, it said.
In managing the immediate and near-term capital requirement of the company's Indonesian coalbed methane projects, the company?s board is conducting a review of financial proposals, including equity and non-equity financing options, from a select group of interested parties.
?Based on market analysis and independent reports, the board believes the fundamentals of the Asian gas industry remain highly supportive of opportunities within Indonesia 's rapidly emerging coalbed methane industry,? it said.
The board anticipates completing the third tranche of the private placement shortly, it said.
CBM Asia has significant CBM exploration and development opportunities in Indonesia. The company holds various participating interests in four CBM PSCs in Indonesia including a 70 percent participating interest in the GMB Indragiri Hulu block covering 519 km2 in Central Sumatra, a 70 percent participating interest in the Bentian Besar block covering 830 km2 in the Kutai Basin of East Kalimantan and a 18 percxent interest in the Kutai West block covering 869 km2 west of the Bentian Besar block in East Kalimantan.
The company has also entered into a binding letter of intent to acquire a 12 percent participating interest in a PSC for CBM on the 580 km2 Sekayu block located in the South Sumatra Basin where 3 exploration wells have been drilled by Medco Energi, following initial exploration drilling of a production test well in the second half of 2009.
Editing by Roffie Kurniawan