CBM Asia Development Corp. (TSXV:TCF,US:CBMDF,FWB:IY2) announced that Qualified Reserves Evaluator Netherland, Sewell & Associates, Inc. (NSAI) completed the coalbed methane resource estimate for the Kutai West Production Sharing Contract in Indonesia. There was an estimated 80% probability of geological discovery and a gas content of 300 scf/ton (dry, ash-free basis). The NSAI technical report was filed on SEDAR.
As quoted in the press release:
NSAI’s latest appraisal concluded the following key findings under its Best Estimate (most likely case):
- 3,915 Bcf of gross unrisked prospective gas resources (705 Bcf net).
- Estimated 80% probability of geological discovery.
- 50% overall probability of commerciality including geological and development risks.
- Gas content of 300 scf/ton (dry, ash-free basis).
CBM Asia Development Corp. Chairman Scott H. Stevens said:
The Company has established 705 Bcf of net unrisked prospective gas resources near the Bontang LNG facility, which exports natural gas to North Asia at prices in excess of USD12/Mcf. Combined with NSAI’s previous estimate for the Sekayu PSC in South Sumatra of 276 Bcf of net prospective resources, the Company’s total net unrisked prospective resources from its Kutai West and Sekayu PSC’s equals 981 Bcf (4.976 Tcf gross). These two blocks represent just 6.1% (307 km2) of the Company’s total net acreage position of 5,070 km2 within nine PSC’s and one Joint Study (1), supporting our 15-Tcf target (2) in Indonesia. Actual exploration costs incurred at the Sekayu and Kutai West PSC’s total less than USD0.01/Mcf, far below the current natural gas prices of USD5.50 to 9.40/Mcf in South Sumatra and higher in East Kalimantan near the Bontang LNG facility.