CBM Asia Development Corp. has signed a production-sharing contract with the government of Indonesia for the Kuala Kapuas I CBM block, located in the Barito basin of South Kalimantan, Indonesia, according to a news release.

CBM Asia holds an 80% working interest in the 1,501-sq km (580-sq mile) Kuala Kapuas I CBM block and will be the operator, with CBM Asia’s partner PT Tranaco Utama (Tranaco) holding the remaining 20% interest.

“We have commenced planning the 2013 exploration drilling program,” CBM Asia President and CEO Alan T. Charuk said in the news release. “The award of Kuala Kapuas I increases 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 102 Tcf. We hope to add to our Barito basin acreage in the near future through the PSC bid process and joint ventures.”