CBM Asia Development Corp. is a coal bed methane (CBM) exploration company focused solely on Indonesia, where some 450 Tcf of gas-in-place has been identified. The company has five production-sharing contracts and two joint studies with a gross area of 1.4M acres. To date, CBM Asia has drilled seven CBM wells, achieved gas to surface and plans to bring first gas to production in 2013.
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The Energy Report Interview with Bob Moriarty
"I have owned shares in CBM Asia Development Corp. for four years. It has about 160M shares outstanding; 250M shares fully diluted. It has already found 1 Tcf gas. In Canada or the U.S., that 1 Tcf gas would be worth $200–500M. The company has a market cap of about $27M. It is in the middle of raising money to drill, which has driven the stock price down to $0.16. If it were operating in Canada, it would be a $500M company."
The Energy Report Interview with Peter Dupont
"One situation I'd like to mention in particular is CBM Asia Development Corp. It's a play on coal bed methane opportunities in Indonesia that's still at a fairly early stage. Momentum is increasing rapidly there following the joint venture with Exxon Mobil Corp. that CBM Asia announced at the end of last year. Development and derisking is likely to get underway in Q2/13, which potentially should provide some very interesting news flow over the year. It's already announced nearing a trillion cubic feet of resources, which has been independently audited by Netherland, Sewell. There could be further announcements on the resource base by the end of the year.
"If it all comes off, it could move from being a junior valued at about $40M to something that starts becoming a midtier, possibly valued in the hundreds of millions. We would reckon that there's a resource, based on the existing projects, which is about 14 Tcf net. That's a big number in gas circles. . .the coal seams in Indonesia tend to be laterally continuous and are not heavily impacted by faulting, as they are in China, where development is very difficult and expensive. . .Coal bed methane development and operating costs are low in Indonesia. It's important to note that CBM Asia actually is in the driving seat (it is the operator) as far as the ExxonMobil joint venture is concerned, which says a great deal about the technical capabilities of the company."
Sam Wahab, Seymour Pierce
"2012 has proven to be a pivotal year in CBM Asia Development Corp.'s growth story, involving successful drilling activity, a material increase in resources and the recent initiation of a transformational agreement with Exxon Mobil Corp. Significantly, 2013 will see the company achieve first gas sales through the implementation of two pilot production programs that could upgrade resources providing the empirical evidence of commerciality."
Peter Dupont, Edison Investment Research
"We initiate coverage of CBM Asia Development Corp., a play on the emerging coal bed methane province of Indonesia; in a major strategic move, CBM Asia Development recently announced a joint venture with ExxonMobil for the development of four blocks in the Barito Basin, South Kalimantan. Across CBM Asia Development's blocks we estimate net recoverable resources of 14.2 Tcf, a sizeable resource base by industry standards. . .coal characteristics appear highly propitious for coal-bed methane development and development costs are likely to be internationally competitive—the plan is to unlock value through asset sales following derisking."
Bob Moriarty, 321 Energy
"CBM Asia Development Corp. announced on Jan. 31, 2013 that it has an NI 51-101 resource of 705 Bcf in the best estimate category. . .I think the NI 51-101 resource from Jan. 31 is explosive. . .the company is targeting 15 Tcf on its land package and I believe it will find it."
CBM Asia Development Corp. Content
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