|Vancouver, Business Wire -- CBM Asia Development Corp. announces that Medco Energi has signed a non-binding Memorandum of Understanding (MOU), to conduct the sale and purchase of coalbed methane gas produced during the dewatering stage at the Sekayu Coalbed Methane (“CBM”) Production Sharing Contract (PSC), South Sumatra, Indonesia.
Mr. Alan Charuk, Chief Executive Officer and President, commented, ''This MOU will facilitate the early sale of coalbed gas from the Sekayu PSC, where CBM Asia earlier this month announced its NI 51-101 compliant Best Estimate of 1.062 trillion cubic feet of unrisked, recoverable gross prospective gas resources. We are currently assisting Medco’s engineering staff to design the pilot production program, expected to be initiated during 1Q-2012.''
Under the terms of the MOU, the Sekayu CBM PSC has been approved by Indonesia’s upstream oil and gas regulator, BPMigas, to sell coalbed methane produced during the dewatering stage for local power generation. The parties involved are working to define terms of a Gas Sales and Purchase Agreement (“GSPA”) that would provide the basis for gas sales and deliveries which are expected to commence during 2012.
PT Medco Energi International Tbk -- www.medcoenergi.com
MedcoEnergi is a publicly listed integrated energy company on the Jakarta Stock Exchange, with focus in exploration and production of oil and gas business in Indonesia and Maghreb countries. As an integrated energy company, MedcoEnergi also involves in downstream business by producing LPG, trading and distributing HSD, and producing industrial grade bio-ethanol. It also involves in Power Generation business that produces approximately of 1,500 MW of electricity. MedcoEnergi also strives to nurture other energy businesses by entering into exploration and production of Coal Bed Methane, Coal Mining, Gas Pipeline and Distribution, and Oil and Gas Exploration and Production Services. Its operation areas cover Indonesia - from western to eastern tip, Oman, Yemen, Libya, as well as Gulf of Mexico.
CBM Asia Development Corp - www.cbmasia.ca
CBM Asia Development Corp. is a Canadian-based unconventional gas company with significant coalbed methane (CBM) exploration and development opportunities in Indonesia. The Company holds various participating interests in four production sharing contracts (each a PSC) for CBM in Indonesia. Indonesia has one of the largest CBM resources in the world with a potential 453 trillion cubic feet in-place, more than double the country's natural gas reserves (Stevens and Hadiyanto, 2004). Since 2008 more than 30 CBM PSCs have been granted by the Government of Indonesia, representing exploration commitments of over US$100 million during the next 3 years. In addition to CBM Asia, other companies active in CBM exploration in Indonesia include BP, Dart Energy, ENI, ExxonMobil, Medco, and TOTAL. BP, ENI, and the Indonesian government have confirmed that commercial CBM production started in March 2011 from the Sanga-Sanga PSC and is being exported from the Bontang LNG facility.