CBM Asia announced it has entered into a Joint Study and Bid Group agreement with Continental Energy Corporation to investigate coalbed methane (CBM) exploration and development opportunities in Indonesia.
Under the agreement, CBM Asia and Continental will jointly and exclusively study selected areas in Indonesia with the objective of identifying geologically favorable areas to be jointly pursued as targets of opportunity for direct acquisition of coalbed methane production sharing contracts (PSC) offered by the Indonesian government. Acquisitions would be by public tender or direct proposal tender conducted under joint study arrangements.
Successful CBM PSC acquisitions shall be shared by CBM Asia and Continental under a pre-agreed joint operating agreement (JOA) with participating interest of 75% CBM Asia and 25% Continental. CBM Asia shall act as operator under the JOA and any CBM PSC and pay 100% of the JOA’s CBM PSC general and administrative costs. All CBM PSC acquisition costs and other JOA exploration and drilling costs shall be borne by the parties in proportion to their respective JOA participating interests.
“ We are very excited having Continental Energy as a partner. Continental has extensive geological knowledge of certain areas of interest to us as well as on-the-ground operating experience ,” comments Alan Charuk, President and CEO of CBM Asia. “ We have identified several areas of interest which we and our new partner will be actively pursuing in the near future .”
[mappress] LNG World News Staff, May 15, 2012