CBM Asia, Continental Enter Into Partnership for Indonesia CBM

CBM Asia Development Corp has entered into a Joint Study and Bid Group agreement with Continental Energy Corporation to investigate coal bed methane exploration and development opportunities in Indonesia.

Under the agreement, CBM Asia and Continental will jointly and exclusively study selected areas in Indonesia with the objective of identifying geologically favourable areas to be jointly pursued as targets of opportunity for direct acquisition of coal bed methane production sharing contracts offered by the Indonesian government.

Successful CBM PSC acquisitions shall be shared by CBM Asia and Continental under a pre-agreed joint operating agreement with participating interest of 75% CBM Asia and 25% Continental. CBM Asia shall act as operator under the JOA and any CBM PSC and pay 100% of the JOA's CBM PSC general and administrative costs. All CBM PSC acquisition costs and other JOA exploration and drilling costs shall be borne by the parties in proportion to their respective JOA participating interests.