Medco begins 2nd production testing at Sekayu CBM PSC

Canadian firm CBM Asia Development Corp. reported Wednesday that operator PT Medco Energi Internasional Tbk has begun to production test a second well at the Sekayu CBM PSC South Sumatra.

The CBM-SE-03 well had penetrated over 230 feet of net coal with good gas content.

Weatherford International Ltd. is preparing to conduct Coreless Critical Desorption Pressure at the well to measure coal seam gas saturation and gas flow capacity.

Weatherford already measured up to 95% gas saturation level (revised up from 93%) in the nearby CBM-SE-02 well, after which flammable gas was produced at surface. The new data will be provided to the Company's Qualified Reserves Evaluator, Netherland, Sewell, & Associates, Inc., for its evaluation of the Company's potential coalbed methane resources at the property, expected in the third quarter 2011.

Medco Energi has 50 percent interest in the block with CBM Asia has the right to earn an estimated 12% participating interest. (alex)