Friday, January 21st, 2011 - CBM Asia Development Corp.
VANCOUVER, BRITISH COLUMBIA--(Marketwire) - CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX VENTURE: TCF)(US: CBMDF)(FRANKFURT: IY2) provides an update of its Sekayu coalbed methane (CBM) project in South Sumatra, Indonesia.

Jakarta-based PT Medco CBM Sekayu ("MedcoEnergi"), a wholly owned subsidiary of PT Medco Energi CBM Indonesia, is the operating partner of the Sekayu Production Sharing Contract, in which CBM Asia holds, indirectly, the right to earn an initial 12% interest. MedcoEnergi has notified the Company that it has successfully drilled the upper portion and set 7-inch casing in all three new CBM test wells (CBM-SE-01, -03, and -04).

At present MedcoEnergi is in the process of procuring the services of a wireline-coring tool that will sample the coal section of the three wells for gas content and permeability testing, planned for February 2011. Core Laboratories N.V. has been contracted to conduct the gas content sampling and analysis on site, Weatherford International Ltd. has been contracted to perform the Coreless Critical Desorption Pressure testing, while the permeability testing will be conducted by Medco. Production testing (dewatering) on the previously drilled CBM SE-02 will be scheduled in February 2011.

Once the new CBM reservoir data becomes available, most likely during 2Q-2011, the Company plans to engage the services of a Qualified Reserves Evaluator to audit the CBM resources at the block, based on National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. The reservoir data and the dewatering well will also help guide the design of the CBM production pilot which, contingent upon positive results, is planned for 2H-2011.

CBM Asia's newly appointed Chairman Scott H. Stevens noted, "Indonesia's CBM industry is progressing, with over 20 production sharing contracts awarded thus far to Major oil and coal companies and their partners. The 4-well reservoir testing operation at Sekayu is an important milestone for demonstrating gas resources and producibility at this highly prospective PSC, the first CBM license to be awarded in Indonesia."

Contact Profile

CBM Asia Development Corp.

CBM Asia Development Corp. is a Canadian-based unconventional gas company with significant coalbed methane ("CBM") exploration and development opportunities in Indonesia. The Company has the right to earn an estimated 12% participating interest in a production sharing contract ("PSC") for CBM on a 58,349 hectare block located in the South Sumatra Basin where initial exploration drilling of a production test well commenced in the second half of 2009. The Company has committed to fund an initial US$3.25 million in exploration expenditures on the Sekayu PSC to prove reserves and submit a Plan of Development to the Government of Indonesia. The Company also has an 18% net working interest in a PSC for CBM on a 76,000 hectare block located in the Kutai Basin of East Kalimantan. As geotechnical lead, the Company is responsible for directing a US$5.6 million exploration and appraisal program to November 2011, to determine commercial feasibility of CBM production for the Kutai-West PSC and submit a Plan of Development. The Company has 40% net working interests in a second 56,500 hectare block also in the prolific Kutai Basin. 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 conventional natural gas reserves (Stevens and Hadiyanto, 2004). Between May 2008 and August 2009, 15 CBM PSCs were granted by the Government of Indonesia, representing exploration commitments of US$95.68 million over the next 3 years. The Company trades on the TSX Venture Exchange under the symbol "TCF".


Alan T. Charuk, President & CEO

This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. See "Forward-Looking Statements" and "Risks and Uncertainties" in the Company's management discussion and analysis for the interim period ended September 30, 2010 available on SEDAR at These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Alan Charuk
P: (604) 684-2340
M: (866) 504-4755


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