CBM Asia, Exxon Ink JV Deal in Indonesia

CBM Asia Development Corp. has signed a joint venture agreement with ExxonMobil to farm into four existing coalbed methane production sharing contracts (PSC) in the Barito Basin, South Kalimantan, Indonesia and acquire rights to farm into certain additional PSCs in the Kutai Basin, East Kalimantan.

The two companies would hold equal ownership interest in each PSC.

CBMA will acquire a 35% to 37.5% participating interests in four existing PSCs in the Barito Basin, South Kalimantan, Indonesia. CBM Asia and ExxonMobil plan to carry out certain pilot well test programs, and CBM Asia will fund certain operating costs associated with the PSCs.

In addition, CBM Asia will acquire the right to farm into 50% of ExxonMobil's future participating interest in certain coalbed methane PSCs in which ExxonMobil may acquire an interest located in the Kutai Basin, East Kalimantan.

According to the company, the Barito Basin holds approximately 100 Tcf of in-place CBM resources based on industry estimates.