CBM Asia Development Corp. (TSXV:TCF,US:CBMDF,FWB:IY2) provided a review of its operations in Indonesia, as well as an update on its current financing activities. To date, the Company has successfully drilled and tested a total of eight coalbed methane exploration wells at two Production Sharing Contract (PSC) areas in Indonesia. The Company has also been offered financing facilities of US$25 million and EUR60 million by two private institutions.
As quoted in the press release:
Review of Operations. To date the Company and its operating partners have successfully drilled and tested a total of eight coalbed methane exploration wells at two Production Sharing Contract (PSC) areas in Indonesia. This resulted in 981 Bcf of recoverable prospective resources net to the Company.1 Given the Company has raised a total of $34 million to date, this equates to overall finding costs of approximately $0.03/Mcf. The CBM gas sales price in Indonesia ranges from $7.50 to nearly $20/Mcf.
Financing. In light of the difficult market conditions prevailing for most junior resources company the company reduced its private placement requirements to CAD5.0 million in July as a means to focus on a broader financial solution. As of today CBM Asia has been offered financing facilities of USD25 million and EUR60 million by two private institutions. The Company has been engaged with the two institutions for several months. Recent communications and exchange of term sheets indicate possible final decision by the Company to determine which institution to work with in December/January followed by immediate drawdown.