VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 13, 2013) -
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CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX VENTURE:TCF)(US:CBMDF)(FRANKFURT:IY2)
Palisade Capital. The Company announces that, subject to acceptance of the TSX Venture Exchange (the "Exchange"), it has retained Palisade Capital Corp., headquartered in Burtonville, Maryland, U.S.A. ("Palisade"), as an independent consultant to provide marketing services to the Company including producing a corporate video profile outlining the Company's coal bed methane projects in Indonesia, setting up a marketing roadshows/teleconference for the European, Canadian and U.S. investment community and assisting in the distribution of news releases. Collin Kettell, the CEO and Principal of Palisade, will be primarily responsible for providing the services to the Company.
Palisade offers strategic consulting services to public and private companies looking to expand their corporate footprints and attract new international investors. From marketing road shows to full-service investor relations and promotional video campaigns, Palisade utilizes innovative strategies and techniques to drive broader investor awareness, increased liquidity, and higher valuations for its clients.
In consideration for its services, the Company has agreed to pay Palisade a total fee of $70,000 for a term of 10 months (i.e. $7,000 per month) commencing September 1, 2013 and ending on July 31, 2014, subject to the Company's right to terminate the agreement at any time. In addition, the Company has agreed to grant Palisade a stock option to purchase a total of 300,000 common shares at a price of $0.10 per share for a period of 1 year, subject to vesting in accordance with the Company's stock option plan and the policies of the Exchange. Palisade has also subscribed for 520,000 common shares at a price of $0.10 per share for gross proceeds of $52,000 pursuant to the Company's non-brokered private placement announced on August 6, 2013.
Except as aforesaid, Palisade does not have an interest, direct or indirect, in the Company's securities, or any right or intent to acquire such an interest.
Kutai II Arbitration Decision: The ICC has ruled against CBM Asia's claim on the Kutai II CBM production sharing contract. The Company had previously written off 100% of its $40,546 investment in the property during the second quarter of 2011.
ABOUT 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 holds various participating interests in five production sharing contracts (each a "PSC") for CBM in Indonesia, with the right to farm-into 4 additional PSCs. 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 a total of 54 CBM PSCs have been granted by the Government of Indonesia, representing exploration commitments of well 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, Santos, 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. The Company trades on the TSX Venture Exchange under the symbol "TCF".www.cbmasia.ca
ON BEHALF OF CBM ASIA DEVELOPMENT CORP.
Alan T. Charuk, President & CEO
Neither the 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.
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. The economics of exploring, developing and operating resource properties are affected by many factors including, but not limited to, the cost of exploration and development operations, conclusions of economic evaluations, unexpected formations or pressures, premature declines in reserves, potential environmental damage, blow‐outs, fires, variations in the amount and saturation of CBM contained in individual coal seams and the rate of production therefrom, fluctuations in gas prices and the availability of capital. There are no assurances that the Company's work programs will result in the discovery of commercially viable or economically producible properties. Gas in place estimates referred to in this news release are not NI 51-101 compliant and do not represent "discovered petroleum initially-in-place" within the meaning of the Canadian Oil & Gas Evaluation Handbook (COGE Handbook). The term "discovered petroleum initially-in-place" is equivalent to discovered resources, and is defined in the COGE Handbook to mean that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. There are no assurances that any portion of the estimated gas in place resources referred to herein will be discovered. Furthermore, such estimates make no allowance for the recovery of the gas which will depend on, among other things, the reservoir characteristics encountered and future economic conditions. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those made in our Canadian continuous disclosure filings available on SEDAR at www.sedar.com including our December 31, 2012 year end annual MD&A dated April 24, 2013 and first quarter 2013 interim MD&A dated May 29, 2013. 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, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL SECURITIES AND THE COMPANY IS NOT SOLICITING AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.