The Energy Report - CBM Asia Development Corp. TSX.V:TCF; OTCBB:CBMDF

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CBM Asia Development Corp.

TICKER: TSX.V:TCF; OTCBB:CBMDF

DESCRIPTION: CBM Asia Development has participation interests in production sharing contracts in the largest prospective basins for coalbed methane in Indonesia, with 191,000 gross hectares. The company has minimum exploration commitments of CDN$12 million to prove reserves and submit a Plan of Development to the government for each PSC, by 2011. Test well drilling commenced in September 2009. Indonesia has one of the largest CBM reserves in the world with a potential 453 Tcf (SPE, 2004).

Click here to view CBM Asia Development's Corporate Presentation.

Update: BP’s coalbed methane production sharing contract (PSC) awarded Nov 30 ’09 for the exploration and development of coalbed methane (CBM) resources on the Sanga-Sanga block in East Kalimantan, Indonesia. BP's CBM project borders CBM Asia’s Kutai West PSC in the Kutai Basin, East Kalimantan. See BP release here.

WEBSITE: http://www.cbmasia.ca
Q1 Publishing Research Report - CBM Asia Development Corp.

The information below is based on the most recent information we have received from analysts and the companies participating in The Gold Report. We encourage you to visit the company's web site for updates.

TER: Any other stocks that fit your pattern of good stocks that are undervalued?

MK: CBM Asia Development Corp. is a company we really like. We bought a lot of it in our Alert Service for our subscribers and ourselves personally. We bought it at 30 cents in a private placement, and then actually went into the market and followed our own advice after giving our subscribers three days’ head lead, when we bought a lot of stock under 25 cents.

This is an example of a company that the stock came free trading, and there was overselling. This is exactly the type of market that you want to go and take advantage of that type of opportunity. CBM Asia is drilling in Indonesia, within 30 kilometers of the second-largest liquefaction plant in the world. The company has the potential of being one of the largest land owners in the Kutai Basin, and I can’t overemphasize how strategic this land play is.

TER: Why is that so important?

MK: Land ownership is very fractional in the oil and gas sector, and if CBM Asia can consolidate and become one of the larger land holders in the Kutai Basin, I have no doubt you will see a major company from Japan, or the French, or maybe even some of the U.S. majors knocking on the door because of the multi-billions of dollars of infrastructure sitting there.
- The Energy Report with Marin Katusa (03/04/10)

. . .four key catalysts to watch out for. As you can see below, CBM Asia is 4‐for‐4.:

Volume spikes – Three big spikes. Final spike was 20X average daily volume and marked the
start of a new uptrend.

New stock options issued – 500,000 options were issued between June 2nd and June 9th to "certain directors, officers, employees and consultants" exercisable at 30 cents per share.They're all people with a vested interest in shares going up.

Hires an investor relations firm –Thomas J. Byrne "to provide marketing and investor relations services on behalf of the Company with a view to broadening the Company's exposure to the international investment community."

Undervalued company – Our ultra‐conservative valuation is $6.38

Download the full report on CBM Asia from Q1 Publishing.
- Andrew Mickey, Q1 Publishing (06/16/09)

"I'm going to do it. I'm putting CBM Asia 'on the clock.' But I don't think it's going to matter. . .in a good way. Here's why. . .the company is actively working away on its Indonesian coal bed methane projects and the good news should start flowing over the next few months.

The company plans to drill six exploratory wells this year and there's almost no way the results will go unnoticed again. We know there's coal. The coal is permeable. And we're pretty sure there's methane (natural gas) in the coal.

The natural gas assets' value should make this a solid winner, but I'm expecting a lot more. So I'm willing to wait around for no longer than four more months on this. If it's going to go, it's going to go soon.

Don't get me wrong, there are still many reasons to really like CBM Asia. Frankly, I think it's worth 10X what it is now."
- Andrew Mickey, Prudent Investing (01/20/10)

"The past few weeks have been tough for CBM Asia. The news we have been waiting on finally came out. And if you looked at the market's reaction, you'd think it was terrible news. But it actually was very good news.' happening and why CBM Asia is, although it's a speculative stock, quickly working its way up to one of my largest holdings.

Over the last few months we've been waiting (and waiting some more!) to learn the permeability of CBM Asia's coal bed methane (CBM) project. We weren't the only ones though; a lot of shareholders have been eagerly awaiting the news.

A few days ago the company announced the results. In what I call the 'the most confusing press release in history,' the company announced its CBM project had 500 milliDarcies of permeability.

The reaction to the news was a bit disappointing because almost no one knows what the heck a milliDarcy is and whether 500 of them is good or not.

A bit of research, however, would have shown you that 500 is very good. For example, the permeability of the Ghawar Field in Saudi Arabia is a bit over 600 milliDarcies. Ghawar is the largest oil and natural gas field in the world, produces oil for less than $2 a barrel, and has plenty of cheap natural gas.

Basically, 500 milliDarcies of permeability is absolutely spectacular.

However, CBM Asia did make a mistake. When they drilled the test well, they failed to trap the gas in a canister to test the amount of methane in it and there's no way to retest the well. Now, that's the missing link.

In the end, CBM Asia's success was predicated on answering three questions:

Is there coal? – Yes
Is the coal permeable? – Yes
Is their methane in the coal? – Don't know

Over the last week I've tried to find any CBM development project in the world where there was no methane. I haven't been able to find a single one.

So, as far as the facts go, CBM Asia still has all the potential we initially expected—probably more.

It's definitely a 'Buy' at these price levels."
- Andrew Mickey, Q1 Publishing (12/14/09)

"CBM Asia (TSX:TCF or Pinksheets:CBMDF)—Shares of CBM Asia have been getting hit pretty hard lately. The problem isn't any bad news or anything like that. Its investors are clearly getting frustrated. There's no heavy selling, but people are getting impatient waiting for the next set of results.

To be honest with you, I've actually been buying more. To me, there aren't too many places in today's market where you can risk 37 cents to make anywhere between 100% and 1,000% in a few month's time. So, yet again, this is another dip to load up at one of the best prices of the year.

Catalyst—The permeability results are coming soon. That's the next step. You never know what they will be, but if they're OK, we'll do well. If they're good, we'll be sitting on a sizeable gain. If they're great. . .well, let's not get ahead of ourselves. We'll see what they are when they come out in a few days or weeks, at most."
- Andrew Mickey, Q1 Publishing (11/18/09)

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