Professional Documents
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SINGAPORE
BONTANG
LNG
Barito Basin
GIP potential: 102 Tcf
2
CBM Asia Strategy
Strategy: Material Positions in Key Basins - Partner With Majors
Key Strategy Points Targeted Basins
Acquire acreage with the potential to generate 10-15 Tcf of 1. Central Sumatra: 53 Tcf GIP - pipelines and Duri steam flood
net recoverable resources
2. Barito: 102 Tcf GIP - export potential and Java pipeline
Concentrate acquisition efforts in less competitive basins to
gain access to key CBM sweet spots and hold material 3. Kutai: 80 Tcf GIP - pipelines and Bontang LNG
position
4. Tarakan/Berau: 26 Tcf GIP - local industry and export potential
Partner with oil & gas majors to leverage financial strength
and technical capabilities to build out required
infrastructure
4
KUTAI II
Farm out acreage where applicable to reduce capital DURI SINGAPORE
requirements KUTAI WEST
1
3
BESAR
Employ North American rig and completion technology to
BONTANG
reduce operating costs, accelerate drilling and enhance HULU LNG
recovery 2
3
CBM Asia
2009-2011 Prove Concept, 2012 Expansion & 2013 Drill
2009 2010 2011 1H 2012 & 2H 2012 Plan 2013 Plan
Sekayu: LOI to acquire 12% Sekayu: gas content analysis Sekayu: 1.06 Tcf of gross 1H 2012 KW & Sekayu: Production
WI from 02 well recoverable prospective KW: complete exploration testing & divest interest
resource. Begin production KKI: HOA to acquire 80% WI
pilot planning Sekayu: Increase WI to 26% Hulu, Besar & KKI : start
Tarakan: sign HOA exploration and begin pilot
Hulu/Besar: sign LoI to production planning
acquire 70% WI 2H 2012 Plan
Sekayu: production testing Joint Studies: acquire PSCs
Core drilling KW: Start exploration KKI: PSC awarded
drilling Joint Studies: start 3 JS Tarakan/Berau: start joint
Berau: sign 2 HOAs studies
Production
Resource
Audit
Hulu, Besar,
Sekayu Sekayu Sekayu Kutai-West Sekayu Kutai-West Sekayu & KW KKI
Divest
x2 x3 x5
Position (km2) N = net, G = gross
15,000
51-101 51-101 51-101
Net and Gross Acreage
10,000
5,000
0
2009 N 2009 G 2010 N 2010 G 2011 N 2011 G 2012 N 2012 G 2013N 2013 G
4
CBM Asia
Management Team: Highly Technical With Indonesian Experience
Technical Corporate
Scott H. Stevens, Chairman: SVP and Director of Advanced Alan Charuk, President & CEO, Director: over 20 years of
Resources International an internationally recognized CBM experience in the formation and financing of resource
and shale gas consulting firm. Since 1995 Mr Stevens has companies in emerging markets including Indonesia,
been working with the Government of Indonesia, Chevron, Nicaragua, Colombia and Cuba. Substantial on the ground
and other multinationals to high-grade CBM resources and emerging market experience.
develop current CBM regulations in Indonesia.
Jim Charuk, Bsc Geology, VP Exploration, Director: over 20 Adam Clarke, VP Corporate Development, Director: former
years experience in the oil & gas exploration and production Managing Partner of Expedition Capital (HK) and Senior
industry. Managed reservoir identification, evaluation, and Managing Director Bear Stearns Asia (HK). 20 years of oil &
exploitation programs on six continents, as well as a gas investment related experience in the Asia-Pacific region
worldwide drill technology program for Chevron. including Indonesian oil & gas and coal industries.
Keith Potter, General Manager, Indonesia: over 29 years of Dr. James Friberg, Ph.D. Sedimentology, Director: former
international oil and gas industry experience, 12 years CBM President of Black Gold Energy (Indonesia) - which was
experience and 10 years Indonesia experience. Former acquired by Niko Resources for CAD300 mn in 2009 -
President Director of PT Seamgas, a subsidiary of Westside Exploration Manager for Unocal Indonesia (now Chevron)
Corporation and PT Bumi Resources, which discovered 3 TCF and Unocal’s Chief Geologist Worldwide.
CBM.
Dr. Harvey Price, Ph.D. Mathematics, VP CBM Charles Bloomquist, P.Eng, VP Operations, Director:
Technologies: helped develop the first theories on coalbed petroleum engineer with over 30 years experience in North
methane's commercial viability. Dr. Price managed the America, Africa and Asia. Worked with Indonesia’s National
world’s first simultaneous coal mine degasification and Oil Company Pertamina to manage drilling projects in
methane production venture. Sumatra.
5
Why Indonesian CBM?
Indonesia Looks Like Australia & USA - Not Like China
USA China Australia Indonesia
CBM Gas In
Place
>500 Tcf >500 Tcf >500 Tcf 453 Tcf
BHP, BP,
Major Oil ConocoPhillips,
Company Chevron all tested
CBM but then left due
CBM Activity
to poor geology.
6
Why Indonesian CBM?
Sekayu & Kutai West Results Superior to USA Analog
Depth Mud Gas Units Unknown
(Feet)
0 100 200 300 400
Fm 1
500
Powder River Basin (Wyoming, USA), which most
experts consider the best commercial analog for
1,000
Indonesia.
Fm 2
1,500
2,000
JAF01525.CDR
2,500
Depth (ft) 1,200 BBC 2,000 Well Logs 1,000-2,500 Schlumberger Deeper = more pressure, higher potential gas content
Coal Thickness (ft) 120 BBC 147 Well Logs 100 Well logs Thicker = more potential gas in place
Coal Rank (Ro) 0.3% USGS 0.3%-0.4% Lab Test 0.4-0.47% Joint Study Higher Rank = higher potential gas content
Gas Content (ft3/ton d.a.f) 50 USGS >100 Corelab 150-280 Geogas Higher Gas Content = more potential gas in place
Gas Saturation 60% USGS 95% Weatherford 79-100% Geogas Higher Saturation = faster potential gas production
Permeability (mD) 500 USGS 500 Medco 5-15 Schlumberger Comparable
Current Gas Price (USD/Mcf) 3.00 NYMEX 5.50-9.40 Public 7.50 - 12.00 Public Better Economics
Source: BBC = Bill Barrett Resources 2011. USGS = US Geological Survey, 2004
7
Why Indonesian CBM?
Low Geological Risk: Abundant Conventional and Coal Control Data
Depth Mud Gas Units Unknown
(Feet)
0 100 200 300 400
Fm 1
outside the PSC area, substantial seismic coverage Thick Coal Seams with Gas Kicks
500
CBM SE-02
CBM SE-04 1,000
CBM SE-03
Fm 2
CBM SE-01 1,500
2,000
Fm 3
JAF01525.CDR
2,500
Coal Mining
Conventional Conventional
Coal Mining
Conventional well 0
Fm 1
penetrates coal seam 500
1,500
2,000
Fm 3
JAF01525.CDR
2,500
9
Why Indonesian CBM?
Low Capital At Risk: USD6.5 mn to USD9.0 mn per PSC
LOW CAPEX EXPLORATION PHASE HIGH CAPEX
10
CBM Asia
Investment Target: 20X Risked Return on Exploration Investment
Study Case: Sekayu PSC
Low Geological Risk: deep, gas-charged coal seams in Sumatra are known from abundant conventional oil & gas data; well logs,
seismic, and geochemical data.
Gross Recoverable Resources: 1.06 Tcf (177 MMboe) of unrisked gross recoverable prospective resource as per NSAI report.*
Cost Reduction To Increase Return: CBM Asia management believes as operator of two new blocks it can drive capex down by at least
30% as compared with the Sekayu study case.
Drilling: ~50% cost savings by drilling small-diameter “slimhole” core wells to conduct critical desorption pressure (CDP) tests rather
than costly full-sized wells. This technique is widely used in North America and Australia but not yet in Indonesia.
Contractor: ~20-30% cost savings by engaging a contract driller to drill development well program over several blocks.
Administration: ~40% cost reduction by fast tracking project implementation and spreading team costs over multiple projects rather
than just one as is the case of Sekayu.
* As of September 30, 2011. The low and high estimates are 0.319 Tcf and 2.056 Tcf, respectively. See Page 29 for important notes in
regards to resource estimates.
11
Why Indonesia CBM?
Value Potential: 1.0 Tcf NPV10 Model = USD400-700 mn
1.0 Tcf Recoverable CBM Project Value Sensitivity (NPV10)
Model Assumptions
1,000 USDmn USD/Mcf 1.20
Indonesia CBM PSC terms dictate contractor after-tax take 900
is approximately 45%. Based on these terms and the 1.00
800
following recovery, capex and operating assumptions:
700
0.80
1. Estimate ultimate recovery (EUR) /well: 1.0 Bcf 600
2. Drilling, completion & gathering costs/well: USD763 K
500 0.60
3. Operating & G&A costs: USD1.96/Mcf
400
1.0 Tcf of recoverable resources result in an in-the-ground 0.40
300
pre-development value estimate range USD400-700 mn
based on likely realized gas price range of USD6.00- 200
0.20
8.00/Mcf (with 3% annual escalation rate). 100
0 0.00
To achieve an 80% confidence level in the NPV(10) value
requires approximately USD15-20 million of capex: 4.00 5.00 6.00 7.00 8.00 9.00 10.00
Gas Price (USD/Mcf)
USD2.5-3.0 mn - signature bonus, study and
performance bond Note: This model has been prepared solely for illustrative purposes. It does not represent actual
values associated with CBM Asia’s current asset portfolio.
USD4.0-6.0 mn - 4 core wells and production tests to
prove gas content, permeability, coal thickness and gas
saturation. (prospective to contingent resource
classification)
12
Why Indonesian CBM?
Natural Gas: Good Pricing Structure and Existing Infrastructure
KUALA KUTAI II
South Sumatra –
West Java I & II Pipeline KAPUAS I
HULU
Length: 1,000 km
Grissik Capacity: 970 MMcf/d
With Compression: 2.3 Bcf/d
13
Why Indonesian CBM?
Natural Gas: Conventional Production & Reserves: Declining
1,400
N.Sumatra North Sumatra Reserves Kutai /Makassar Reserves 4,500
1,200 2P Recoverable: 15.8 Tcf 2P Recoverable: 39.5 Tcf 4,000 Kutei/Makassar
1,000 2P Remaining: 629 Bcf 2P Remaining: 12.7 Tcf 3,500
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
800
700 Natuna
600
500
Central & South Sumatra 400
Reserves 300
2P Recoverable: 13.0 Tcf 200
2P Remaining: 6.6 Tcf
100
Technical: 3.3 Tcf
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2,000
S. Sumtara
1,800
1,600 C. Sumtara
1,400
1,200 East Java Reserves
1,000 2P Recoverable: 8.5 Tcf
800
600
2P Remaining: 3.7 Tcf
400 Technical: 2.4 Tcf
200
1,400
0
E. Java
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
1,200
1,000
800
350
JAKARTA 600
W. Java
300
400
250
West Java Reserves 200
200 2P Recoverable: 2.6 Tcf
0
150 2P Remaining: 524 Bcf
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
100
Technical: 3.3 Tcf
50
Production: MMcf/d
0
Source: CBM Asia and public sources
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
14
Indonesia Natural Gas
Natural Gas: Strong Demand Trends - Domestic and Export
Indonesia: gas consumption per capita of 6.1 Mcf/year far below world average of
Indonesia: Gas Demand & Production 16.6 Mcf/year or economic peers of 20 Mcf/year. Production unlikely to match
3,000 demand growth supporting strong domestic prices.
Production
Consumption
Asia: demand outstripping supply - 9.5 Bcf/d deficit. 2.6 billion people (China, India
2,000
and Vietnam - 40% of world’s population) consume less than 2.4 Mcf/capita or 1/6
the world average. The potential for a surge in demand supports export pricing.
1,000
GDP / -------- Consumption -------- ------- Production -------- -- Surplus/(Deficit) --
NATURAL GAS Pop Capita Mcf / Bcf / 10 Year Mcf / BCF / 10 Year Mcf / BCF /
BCF
2010 mn USD Capita / Y Day Growth Capita / Y Day Growth Capita / Y Day
0 Australia 22 42,131 51.1 3.1 36% 77.5 4.7 46% 26.3 1.6
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
Bangladesh 149 675 4.8 1.9 95% 4.8 1.9 95% 0.0 0.0
China 1,338 4,428 2.8 10.3 287% 2.5 9.1 211% -0.3 -1.2
India 1,171 1,475 1.9 6.2 168% 1.6 5.1 117% -0.4 -1.2
Indonesia 240 2,946 6.1 4.0 101% 12.2 8.0 55% 6.1 4.0
Japan 127 42,831 29.2 10.2 28% 1.4 0.5 -10% -27.8 -9.7
Korea, South 49 20,757 31.0 4.1 111% 0.6 0.1 na -30.4 -4.1
Asia-Pacific: Gas Demand & Production Malaysia 28 8,373 40.3 3.1 28% 76.4 5.9 29% 36.1 2.8
New Zealand 4 26,932 33.7 0.4 -35% 34.8 0.4 -33% 1.1 0.0
20,000 Pakistan 174 1,073 8.1 3.8 81% 8.1 3.8 81% 0.0 0.0
Consumption
Philippines 93 1,820 1.1 0.3 1330% 1.1 0.3 1330% 0.0 0.0
Production Singapore 4 36,968 67.4 0.8 612% 0.0 0.0 na -67.4 -0.8
15,000
Taiwan 23 16,422 22.8 1.5 122% 0.4 0.0 -69% -22.4 -1.4
Thailand 69 4,169 23.0 4.4 90% 18.5 3.5 94% -4.5 -0.9
10,000
Vietnam 87 1,166 3.3 0.8 532% 3.3 0.8 531% 0.0 0.0
Africa 1,025 3.5 9.7 56% 7.2 20.2 59% 3.7 10.5
Asia 3,780 5.4 56.1 92% 4.5 46.6 77% -0.9 -9.5
5,000 Eurasia 286 73.5 57.5 9% 91.8 71.9 8% 18.3 14.3
Europe 574 35.9 56.5 15% 18.9 29.7 -2% -17.1 -26.9
BCF
C&S America 475 10.2 13.3 37% 11.2 14.6 46% 1.0 1.3
0 Middle East 216 61.3 36.3 88% 77.0 45.6 108% 15.7 9.3
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
15
CBM Asia
Asset Portfolio: 4 PSCs & 1 Pending PSC
-------- Sumatra -------- ------------- Kalimantan ------------- Total
Basin South Central Kutai Kutai Kutai Barito Ex
1
PSC Name Sekayu Hulu Kutai-West Besar Kutai II Kuala Kapuas I Kutai-II
Inves tment Status Own Own Own Own Abritration Own
PSC Status PSC Granted PSC Granted PSC Granted PSC Granted PSC Approved PSC Pending
CBMA Worki ng Interes t 26% 70% 18% 70% 40% 80%
Operatorship and Technical Leader
- Opera tor PT Medco CBMA Newton CBMA Ephi ndo CBMA
- Techni ca l Lea d JSSE/Medco CBMA CBMA CBMA Ephi ndo CBMA
Partners
- Newton Energy 55.0%
- PT Medco 50.0%
- Ephi ndo Energy 21.5% 27.0% 60.0%
- ExxonMobi l Recoverable Resource
- Tra na co 20.0% Calculation
- Sugi co
- Other 2.5% 30.0% 30.0%
Drillable Area
2
Acreage with Extensions (km ) (Gross km2 x 247 x usable area)
- Gros s 580 519 869 830 487 1,501 4,299 X
- Net 151 363 156 581 195 1,201 2,452
Net coal thickness
NSAI: Audited Unrisked Recoverable Prospective Resource (BCF) - Best Estimates X
- NI 51-101 Compl i a nt (Gros s ) 1,062 na na na na na 1,062 (1-(ash+moisture content)
- NI 51-101 Compl i a nt (Net) 276 na na na na na 276 X
Geological Data Estimates (CBM Asia) Gas Content
Us ua bl e Area 65% 55% 65% 25% 75% 50% X
Net Coa l Thi cknes s (ft) 158 115 94 50 94 193 Coal Density
Ga s Content (s cf/ton) 150 130 200 160 15% 110 =
As h+Moi s ture Content 20% 20% 15% 15% 15% 28% Gas In Place Estimate/1 bn (Bcf)
Coa l Dens i ty (ton a cre/foot) 1,800 1,800 1,800 1,800 1,800 1,800 X
Permea bi l i ty (mD) 187 187 5-15 25 5-15 25
Recovery Rate
Recovery Ra te 55% 55% 55% 55% 55% 55%
=
1. CBM Asia has a participation agreement to acquire 40% of Kutai II PSC - ownerships rights are in dispute and under Recoverable Resource (Bcf)
arbitration in Singapore.
16
CBM Asia NOTE: schedule may change due to regulatory,
equipment, technical and capital developments
Core drilling
Production
51-101 Audit
DERISK
CURVE
17
South Sumatra Basin: Sekayu PSC
The CBM ‘SWEET SPOT’ - 2 Wells Flowing Gas to Surface
SE-CBM-03
Immediate Gas To
Surface. 2
4
3
1 Short Distance to
Gas Pipeline.
SEKAYU PSC
Gross Area: 580 km2
Gross Unrisked Recoverable Prospective Resource:
1.06 Tcf Best Estimate.
Commercialization: power/pipeline
Operation Calendar:
3Q/4Q 12: Production Pilot
4Q 12/1Q13: First production
18
Kutai Basin: Kutai West PSC, Kutai II PSC & Besar PSC
Adjacent to BP’s Sanga-Sanga PSC and Bontang LNG
RECENT DEVELOPMENTS BY MAJORS
TOTAL: in March 2011 acquired PSC in Kutai Basin, Kalimantan.
TOTAL’s first coalbed methane block worldwide. Located close to CBM
Asia’s Kutai West PSC interests.
BP
BENTIAN BESAR PSC
Gross Area: 830 km2
Working Interest: 70%
Commercialization: local coal mining and pipeline to Bontang LNG
Operation Calendar: Q3 2013 first exploration well
19
Central Sumatra: Hulu PSC
80 Tcf Of OGIP, High Priced Market Duri Steam Flood
USD11/Mcf
USD12-16/Mcf
Duri Steam Flood
SINGAPORE
HULU PSC
Working Interest: 70% & operatorship
Gross Area: 519 km2
Commercialization: Duri steam flood, local
power & industrial sales.
Operation Calendar: 3Q 13: Exploration
20
Barito Basin, South Kalimantan
102 TCF of GIP, Largest CBM Exploration Play Worldwide
3b
BARITO BASIN: GEOLOGICAL HIGHLIGHTS
2d
Estimated GIP: 102 Tcf (SPE 88630 non NI-51-101 compliant) 2d
21
Tarakan & Berau Basins
26 Tcf Potential Resource
TARAKAN BASIN
BERAU BASIN
CONTINENTAL ENERGY
PARTNERSHIP AGREEMENT
22
CBM Monetization Opportunities
Power, Pipeline, CBM to Liquids and Small and Large Scale LNG
CBM to Pipeline
Indonesia has an extensive gas transmission infrastructure running through Sumatra to Java and
Singapore, which is underutilized. Gas pipelines feeding the Bontang LNG facility in East Kalimantan are
also underutilized. There are plans to build a gas pipeline from Kalimantan to Java once sufficient gas
resources have been identified.
CBM to Power
Several CBM pilot-to-gas projects are under development with contract prices set at USD7.50-7.90/Mcf.
Many parts of Indonesia are short of power capacity or dependent on high price fuel oil/diesel. CBM to
power provides early monetization of gas resources and a reduction in regional power costs.
CBM to Liquids
CBM Asia is actively engaged with Indonesian coal mining groups in regards to discussions on producing
stranded CBM on or near their coal mining properties as feedstock for gas-to-liquids conversion. Very
high logistical margins available due to high diesel prices at coal mining sites.
23
Indonesian CBM PSC Terms
Fiscal Flow = 40-45% After Tax; Best Terms In Country Revenue Flow
* Royalty split with
Revenue
Indonesia GROSS PRODUCTION Contractor government in
some PSCs.
= Profit Split
Indonesia Share Contractor Share (government and
(19.6 - 28.6%) (gas) (71.4 - 80.4%) (gas) contractor)
Domestic
(-) DMO (25% max) Market
Obligation
(+) DMO Fee (no price
adjustment)
Taxable Income
- Income Tax
(-) Income Tax (44%)
= Contractor
INDONESIA TAKE CONTRACTOR TAKE Take
24
Why Indonesian CBM?
Substantial Resource Potential: 453 Tcf
18 Tcf
0.5 Tcf
102 Tcf
183 Tcf
2.0 Tcf
3.0 Tcf
3.6 Tcf
0.8 Tcf
PT. Tranaco Utama: A leading Indonesia oil and gas Technical Advisors
infrastructure company holding a 28% interest in the East Java
gas pipeline. Involved in over 25 pipeline projects in Indonesia.
Advanced Resources International, Inc.
Tanito Coal: One of Indonesia’s largest coal producers with
2008 production of 7.0 mn tonnes. Operating in Kutai area for
over 20 years. Significant mining and civil engineering Current
infrastructure within areas covered by the Kutai-West PSC
including extensive roadway development.
Future
Maxidrill
Welldog (Gas Sensing Technology Corp)
PT Bormindo Nusantara
26
CBM Asia
Financial and Operational Snapshot
FINANCIAL (as of July 2012) SIGNIFICANT SHAREHOLDERS
Issued Shares: 168 mn Indus Capital Partners LLC 16.5%
Warrants: 114 mn (CAD42.2 mn value) Management 15.6%
Options: 13 mn (CAD2.6 mn value)
Fully Diluted Shares: 294 mn
Cash: CAD8.3 mn
Debt: Nil
15.6%
OPERATIONAL
Employees: 22
41.1%
Acreage (km2): 3,163 (net) - 5,879 (gross)
Prospective Recoverable Resource: 276 Bcf (net) – 1.06 Tcf (gross)
Production Sharing Contracts: 6 35.0%
Offices: Vancouver & Jakarta
8.3%
Management/Consultants
Institutions
Professional
Other
27
CBM Asia
Corporate and Contact
Listings: Mr. Alan Charuk, President & C.E.O.
Canada: TSX Venture Exchange – symbol TCF
Germany: Frankfurt Stock Exchange – symbol IY2 email: acharuk@cbmasia.ca
USA: OTC – CBMDF Phone: (604) 684 2340 (Canada)
Reporting Jurisdictions: British Columbia, Alberta, Ontario
CUSIP Number: 1248XC101
Mr. Adam Clarke, VP Development
Head Office:
CBM Asia Development Corp. Email: adam.clarke@cbmasia.ca
404 - 815 Hornby Street Phone: (852) 9106 4969 (Hong Kong)
Vancouver, British Columbia
Canada V6Z 2E6
Legal Counsel: Canada Legal Counsel: Singapore
Gregory T. Chu, A Law Corporation Drew & Napier LLC
650- 1188 West Georgia St. 10 Collyer Quay
Vancouver, British Columbia #10-01 Ocean Financial Centre
Canada, V6E 4A2 Singapore , 049315
28
Disclaimer
STATEMENTS CONCERNING SEKAYU PSC ESTIMATES
1. A Production Sharing Contract (PSC) between CBM Asia and its Partners and the Indonesian Government executed for Sekayu gives CBM Asia
and its Partners the right to explore for coalbed methane. If a commercial discovery is made, CBM Asia and its Partners have the right to develop
and produce from Sekayu.
2. The NSAI figures represent recoverable unrisked gross (100%) prospective gas resources for the Sekayu PSC as a whole and not CBM Asia’s
participating interest therein.
3. The NSAI prospective resources have been estimated using deterministic methods and are dependent on a CBM discovery being made. If a
discovery is made and development undertaken, the approximate probability that the recoverable volumes will equal or exceed the unrisked
estimated amounts is generally inferred to be 90% for the low estimate, at least 50% for the best estimate, and at least 10% for the high estimate.
4. Prospective resources are those quantities of petroleum estimated, as of a given date (being September 30, 2011), to be potentially recoverable
from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of
discovery and a chance of development. The chance of commerciality is the product of these two risk components. There is no certainty that any
portion of the prospective resources will be discovered. If a discovery is made, there is no certainty that it will be developed or, if it is developed,
there is no certainty as to the timing of such development or that it will be commercially viable to produce any portion of the prospective
resources. Prospective gas resources are undiscovered resources that indicate exploration opportunities and development potential in the event a
commercial discovery is made and should not be construed as reserves or contingent discovered resources.
5. For a further discussion of the risks and uncertainties associated with the recovery of unrisked prospective resources and other significant
factors relevant to the above estimates, please refer directly to NSAI’s technical report entitled “Estimates of Unrisked Gross (100 Percent)
Prospective Gas Resources located in the Sekayu Block South Sumatra Basin, Indonesia as of September 30, 2011” filed on SEDAR at
www.sedar.com and posted on the Company’s website at www.cbmasia.ca.
29
Disclaimer
6. The BOE (barrels of oil equivalent) figures for the Sekayu prospective resource estimates contained in this presentation have been derived by
converting prospective resources of gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil (6 Mcf: 1 bbl). BOEs may be misleading,
particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable to
the burner tip and does not represent a value equivalency at the wellhead.
TERMS OF USE AND DISCLAIMER - This presentation is being provided for the sole purpose of providing the recipients with background information
about CBM Asia Development Corp. (“CBM Asia”). Other than disclosures relating to CBM Asia, the information contained in this presentation is based
on current public information that we consider reliable. CBM Asia has made reasonable efforts to ensure that the information contained in this report
is accurate as of the date hereof, however, there may be inadvertent or occasional errors. No representation, warranty or guarantee, express or
implied, is made as to the fairness, accuracy, completeness or correctness of information contained in this presentation, including the accuracy,
likelihood of achievement or reasonableness of any forecasts, prospects, returns or statements in relation to future matters contained in this
presentation. The views and information provided herein are based on a number of estimates and assumptions that are subject to significant business,
economic, regulatory and competitive uncertainties. See “Forward Looking Statements” below. CBM Asia is not liable to any recipient or third party
for the use of or reliance on the information contained in this presentation.
This presentation provides information in summary form only, is not intended to be complete and does not constitute an offer to sell or the
solicitation of an offer to buy any security. It is not intended to be relied upon as advice to investors or potential investors and does not constitute a
personal recommendation or take into account the investment objectives, financial situation or needs of any particular investor. CBM Asia is not
acting as agent or advisor and encourages the use of independent consultants, as necessary, prior to entering into transactions.
30
Disclaimer
FORWARD LOOKING STATEMENTS -. All statements set forth in this presentation, (other than statements of historical fact) including management's
assessment of future plans and operations, are forward-looking statements. By their very nature, forward-looking statements are subject to numerous
risks and uncertainties, some of which are beyond our control. Forward looking statements are based on the opinions and estimates of management
at the date the statements are made, as well as a number of assumptions made by, and information currently available to, CBM Asia concerning,
among other things, anticipated geological formations, well and financial performance, business prospects, strategies, regulatory developments and
approvals, future commodity prices, the existence of future reserves and productions levels of CBM Asia’s assets, the ability to obtain financing on
acceptable terms, the ability to acquire production and reserves through acquisition, development and exploration activities and that there will be no
significant events occurring outside of CBM Asia’s normal course of business. Although CBM Asia considers these assumptions to be reasonable based
on information currently available to it, they may prove to be incorrect.
In addition, many of these assumptions are based on factors and events that are not within the control of CBM Asia and there is no assurance they will
prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward looking statements include the
effect of and changes in general economic and market conditions, risks associated with coalbed methane exploration, development, production,
marketing and transportation, loss of markets, industry conditions and competition, volatility of commodity prices, currency fluctuations, imprecision
of resource and/or reserve estimates, environmental risks, changes in project parameters, the possibility of project cost overruns or unanticipated
costs and expenses, labour disputes, competition from other industry participants, the ability to access qualified personnel and field services, failure of
plant, equipment or processes to operate as anticipated, acquisitions not being completed or integrated successfully, decisions by regulators and the
ability to access sufficient capital from internal and external sources, as well as those risk factors discussed or referred to in CBM Asia’s public filings
with the securities regulatory authorities in those provinces of Canada in which CBM Asia is a reporting issuer and available at www.sedar.com.
Although CBM Asia has attempted to identify important factors that could cause actual actions, events or results to differ materially from those
described in forward looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended.
Readers are cautioned not to place undue reliance on the forward-looking statements as the assumptions used in the preparation of such information,
although considered reasonable at the time of preparation, may prove to be imprecise and actual results, performance or achievements could
materially differ from those expressed or implied in such forward-looking statements and accordingly, no assurance can be given that any of the plans,
intentions, events or expectations anticipated by forward-looking statements will transpire or occur, or if any of them do so, what benefit CBM Asia
will derive therefrom. Actual results will differ and the difference may be material and adverse.
CBM Asia undertakes no obligation to update forward looking statements if circumstances or management’s estimates or opinions should change
except as required by applicable securities laws.
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