CBM Asia, Exxon Plan JV in Indonesia

CBM Asia Development Corp. is in negotiations with ExxonMobil to farm into three 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 entities would hold equal ownership interest in each PSC.

The final terms and conditions of the proposed farm-in remain subject to the negotiation and execution of formal agreements between ExxonMobil and CBM Asia, as well as, among other conditions, government approvals.

CBM Asia is expected to acquire a 35% to 37.5% participating interests in three existing PSCs in Barito Basin. Furthermore, CBM Asia will have rights to acquire 35% in one additional PSC in which ExxonMobil may acquire an interest.   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 coalbed methane PSCs in which ExxonMobil may acquire an interest located in the Kutai Basin, East Kalimantan.

As per estimates Barito Basin holds approximately 100 Tcf of in-place.