CBM Asia Development announced that Qualified Reserves Evaluator Netherland, Sewell & Associates, Inc. (NSAI) has completed its coalbed methane resource estimate for the Sekayu Production Sharing Contract (PSC) in South Sumatra, Indonesia. Note: prospective resource estimates are not proved reserves.
CBM Asia's Chairman Scott H. Stevens noted, "We are pleased to disclose for the first time coalbed methane resources at Sekayu. These estimates -- prepared by respected third-party evaluator NSAI -- validate the thick coal seams, positive gas content results, and gas-to-surface that we have recently reported. Based on these results the Company is assisting operator Medco Energi to plan its pilot production program, with the goal to achieve commercial production in 2012, potentially increasing resources volumes and continuing the process of upgrading the resources to proved reserves status."
Mr. Stevens also noted, "the resource results support CBM Asia's investment target of maximizing our return on exploration investment. Indeed to September 2011 the Sekayu consortium has spent approximately USD 9.3 million - inclusive of signature bonus - yielding an estimated 1,062 Bcf of recoverable prospective resources. The Sekayu PSC represents only 11% of CBM Asia's total coalbed methane net acreage in Indonesia and only 4.5% including the extensions under application on the Company's new interests in the Hulu and Bentian Besar PSC's. We believe CBM Asia's other properties offer a similar return on investment potential and that Resource Consulting International's upcoming resource estimate will provide further insight to the potential scale of the Company's overall resource base."
Most Popular Articles
From the Career Center
Jobs that may interest you