CBM Asia's Third CBM Well Encounters Coal

CBM Asia Development Corp. has been informed by the operator Newton Energy Capital Limited that the third exploration well reached target depth of 1,000 meters on May 26, 2012 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.

"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.