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CBM Asia Development Corp. has been informed by the director general of oil and gas (MIGAS) of Indonesia that its tender submitted for the Kuala Kapuas I CBM block in the Barito Basin of South Kalimantan was successful.
CBM Asia will now be invited by MIGAS to finalize terms and conditions for a production-sharing contract (PSC). CBM Asia holds an 80% working interest in the 1,501-sq-km Kuala Kapuas I CBM block and will be the operator, with CBM Asia’s partner PT Tranaco Utama holding the remaining 20% interest.
“We hope to finalize PSC terms with MIGAS within the next two months but have already commenced planning the 2013 exploration drilling program,” stated CBM Asia’s president and CEO, Alan T. Charuk.
“The award of Kuala Kapuas I will increase our overall awarded acreage but also sees the company enter the Barito Basin, which is dominated by ExxonMobil and BP. The Barito Basin has an estimated original gas in place estimate of approximately 100 trillion cu ft. We hope to add to our Barito Basin acreage in the near future through the PSC bid process and joint ventures,” Charuk added.