CBM Asia to acquire new block in Sumatra

Vancouver-based firm CBM Asia Development Corp. announced Thursday that it has signed a Letter of Intent to acquire a 70% working interest and operatorship of a 2,100-km2 coalbed methane (CBM) Production Sharing Contract (PSC) located in Sumatra.

?Negotiations continue with the current owner of the PSC and are expected to be completed in near future,? the company said without revealing the name of the block.

Company Chairman Scott Stevens noted "This highly prospective block ranks near the top of the numerous acquisition opportunities available to the Company within Indonesia's emerging coalbed methane industry. The block offers operational synergies with the Company's existing CBM project at Sekayu PSC in South Sumatra and represents the next step in our corporate plan to grow the Company with multiple PSC acquisitions with majority working interest levels and operatorship." (romel)