CBM Asia's East Kalimantan CBM Well Gas Higher Than Expected

CBM Asia Development Corp. has been told by the operator Newton Energy Capital Limited that the final gas content results of the first coalbed methane exploration test well at the Kutai West Coalbed Methane PSC in East Kalimantan, Indonesia are significantly above expectations.  CBM Asia holds an 18% working interest in the Kutai West CBM PSC.

"These final gas content results are significantly above our expectations," said Scott Stevens, Chairman of CBM Asia. "We look forward to confirming these results in the second CBM test well currently being drilled."

The company said that gas content of pure coal samples (ash content less than 15%) ranged from 7.31 to 8.27 m3/tonne (234 to 265 scf/ton), when reported on a dry, ash-free basis. Gas quality was excellent, averaging 96% methane (CH4) with less than 3% CO2 and other inerts. Sorption isotherm data indicate the coals are close to saturated with methane.

On March 15, 2012 the drilling rig spud the second of four planned core wells at the Kutai West PSC and is currently drilling ahead below 500 meters.