CBM Asia: Third Exploration Well Encounters 31 Meters of Net Coal at Kutai West PSC

CBM Asia Development Corp. has been informed by the operator Newton Energy Capital Limited that the third exploration well (CBM-KW-04) reached target depth (TD) of 1,000 meters on May 26 at the Kutai West Coalbed Methane Production Sharing Contract block, located in East Kalimantan, Indonesia.

CBM Asia holds an 18% working interest in the Kutai West CBM PSC.

CBM-KW-04 well logs indicate 31 meters of net coal in the Balikpapan Formation which is line with the CBM-KW-01 net coal thickness of 32 meters and is 24% thicker than the 25 meters of net coal found at the CBM-KW-02 well. The drilling rig is now in transit to the next exploration well location, CBM-KW-03, which is south of the first three wells. The CBM-KW-03 well is expected to spud within the next week and will test the continuity of coal targets of the block.

Separately, on April 1, 2012 CBM Asia opened its Jakarta Representative Office at the Talavera Office Park Jl. T.B. Simatupang Kav, 22-26, South Jakarta. The office, which is located close to many of Indonesia’s oil field service companies, is managed by Mr. Keith Potter, General Manager, Indonesia.  It will house the core technical and administrative teams responsible for CBM Asia’s day-to-day operations.

“We are encouraged by the results of the CBM-KW-04 well logs as they confirm continuous thick coal seams through the eastern section of the block.” comments Alan Charuk, President and CEO of CBM Asia. “We are also delighted to open the Jakarta office as it allows us to begin operating and planning the exploration of our majority owned PSCs as well as those we plan to acquire. Keith Potter, who joined us six months ago as General Manager-Indonesia, has many years of operating and administrative experience in Indonesia and is recruiting a top-rated CBM team to execute our business plan in time and in a cost effective manner.”

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LNG World News Staff, June 15, 2012