CBM Asia Announces Private Placement (Canada)

CBM Asia Development announced a non-brokered private placement of up to 71,428,572 shares at a price of CAD 0.21 per share for gross proceeds of up to CAD 15 million.

The net proceeds of the Offering will be used to, among other things, fund the Company’s pilot production and/or exploration and development costs on its coalbed methane projects in Indonesia, pay ongoing general and administrative expenses and for unallocated working capital.

A cash finder’s fee of up to 6% of the gross proceeds of the Offering may be paid to eligible dealers and finders.

The Offering is subject to the acceptance of the TSX Venture Exchange and is anticipated to close on or about March 29, 2013. All securities to be issued pursuant of the Offering will be subject to a hold period of 4 months and 1 day.

“Resource appraisers from Netherland, Sewell and Associates, Inc. (NSAI) and CBM completion engineers from Advanced Resources International, Inc. (ARI) are conducting their detailed assessments of the Barito Basin CBM blocks in preparation for the Company’s drilling projects later this year. Based on discussions with both parties we are more encouraged than ever to pursue this great opportunity,” states Al Charuk, President and CEO of CBM Asia. “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. An MOU to sell gas from the Barito Blocks has already been signed.”

“Over the past two years investors and the management/Board of Directors have invested alongside one another and have built an impressive portfolio of assets from which our net 15 Tcf (1) target is based. To date, we have achieved gas to surface at the Sekayu PSC and established a NI 51-101 compliant net prospective gas resource (unrisked) of 981 Bcf (2) from only 6% of our net land position near high priced gas markets. Other companies in the Indonesia CBM industry continue to announce good progress with one MOU to sell CBM for USD10.00/MMbtu.”

1 Canadian dollar = 0.972668 U.S. dollars

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LNG World News Staff, March 06, 2013; Image: CBM Asia