CBM Asia Reports Gas Content of its Second Kutai West Well

CBM Asia Development Corp. has been informed by the operator Newton Energy Capital Limited of the preliminary gas content measurements from the second exploration well at the Kutai West Coalbed Methane Production Sharing Contract block, located in East Kalimantan, Indonesia.

Gas content of 12 coal core samples from the Balikpapan Formation in the well averaged 5.56 m3/t (178 scf/ton) on a preliminary, as-received basis (arb), i.e., prior to correction for ash and moisture content. The gas content of two samples exceeded 7 m3/t (224 scf/ton) arb. Previously, CBM Asia reported that approximately 32 meters of net coal was logged in this well.

"This second well confirms that thick coals with attractive coal seam gas contents are present in the Kutai West PSC," said CBM Asia Chairman Scott H. Stevens. "We look forward to receiving the final gas content desorption results for this well from Newton and GeoGas soon."

CBM Asia holds an 18% working interest in the Kutai West CBM PSC.