VANCOUVER (Yosefardi) – CBM Asia Development Corp. has completed a first tranche of 2,553,200 common shares at a price of $0.10 per share for gross proceeds of $255,320.
All securities issued in connection with the first closing are subject to a hold period of four months and one day expiring March 29, 2014.
CBM Asia is a Canadian-based unconventional gas company with significant coalbed methane (CBM) exploration and development opportunities in Indonesia.
The Company holds various participating interests in five production sharing contracts (each a “PSC”) for CBM in Indonesia, with the right to farm-into 4 additional PSCs.
Indonesia has one of the largest CBM resources in the world with a potential 453 trillion cubic feet in-place, more than double the country’s natural gas reserves (Stevens and Hadiyanto, 2004).
Since 2008 a total of 54 CBM PSCs have been granted by the Government of Indonesia, representing exploration commitments of well over US$100 million during the next 3 years.
In addition to CBM Asia, other companies active in CBM exploration in Indonesia include BP, Dart Energy, ENI, ExxonMobil, Medco, Santos, and TOTAL. BP, ENI, and the Indonesian government have confirmed that commercial CBM production started in March 2011 from the Sanga-Sanga PSC and is being exported from the Bontang LNG facility.