D E V E L O P M E N T C O R P.

Indonesian Coalbed Methane

Proved Concept: Gas-to-surface at Sekayu PSC in two wells

1.06 Tcf Unrisked Gross Recoverable Prospective Resources at Sekayu PSC
Gross Exploration Cost: USD0.01/Mcf

Return Target: 20X Risked Return on Exploration Investment

Material Acreage and Operatorship: 3,035 km2 net
Strategically Positioned for Quick Commercialization
First Production/Revenue Expected 3Q 2012
Growth Strategy: Distressed PSCs and Partnership Program

SEKAYU PSC
Immediate Gas to Surface
CBM-SE-03

Exit Strategy: Derisk and Monetize CBM Blocks Through Asset Sales
Experienced, Motivated Management and Technical Teams

April 2012

CBM Asia
Proved Concept, Material Resources and Positioned For Growth

Proved Concept: CBM Asia has thick coals, good gas content and saturation, high permeability, immediate gas to surface. BP, ENI,
TOTAL, Exxon Mobil and Dart active in Indonesias CBM industry. BP selling CBM to Bontang LNG for export.

1.06 Tcf (177 MMboe) Unrisked Gross Recoverable Prospective Resources at Sekayu PSC: 1.06 Tcf (Best Estimate) of NI 51-101
compliant prospective resources certified by Netherland, Sewell & Associates Inc. as of September 30, 2011. The low and high
estimates are 0.319 Tcf and 2.056 Tcf, respectively.

20X Risked Return On Exploration Investment (RROEI) Target: Sekayu PSC exploration spend of USD9.3 mn to September 2011 results
in 1.06 Tcf of unrisked gross recoverable prospective resources. Exploration cost reduction of 30% expected. Finding cost USD0.01/Mcf.

Material Acreage, Ownership and Operatorship: 4 PSCs (two operated and majority owned - 70%). 2,799 km2 gross acreage, 1,171 km2
net acreage; pending area extensions increase gross area to 5,362 km2, net area to 3,035 km2. Application for an additional PSC, 1,500
km2, 80% interest and operatorship.

First Revenue Expected 3Q 2012: early gas production from Sekayu PSC to be sold to power grid. PSC amended to sell test gas. First
revenue expected third quarter 2012.

Proven Growth Strategy: objective to rapidly acquire majority stakes in 10 PSCs through acquisitions, bids and mergers, Asian NOC
partnership and CBM-to-liquids production with coal miners.

Premium Domestic and Export Markets: properties strategically located near existing pipelines, power stations and LNG infrastructure
for easy access and quick commercialization to premium priced domestic and export markets.

Experienced, Motivated Management and Technical Teams: management (14% ownership) experienced in early stage enterprise
development and technical team has substantial CBM and Indonesia experience.

CBM Asia
Current Asset Portfolio and Gas Pricing
KUTAI WEST PSC
18% WI
869 km2

USD12/Mcf

USD11/Mcf

USD7-15/Mcf

BENTIAN BESAR
70% WI
1,930 km2^
CBMA-Operator

SUMATRA
HULU PSC
70% WI
1,983 km2^
CBMA-Operator

KALIMANTAN

USD5.50-9.40/Mcf

SEKAYU PSC
24% WI^^
580 km2
1.06 Tcf (gross)

KUALA KAPUAS I
Application
80% WI
1,501 km2
CBMA-Operator

KUTAI II
40% WI
Arbitration
560 km2

USD6-13/Mcf

^ Including pending extensions

^^ See page 15 for details on working interest
3

CBM Asia
Management Team: Highly Technical With Indonesian Experience
Technical

Corporate

Scott H. Stevens, Chairman: SVP and Director of Advanced

Resources International an internationally recognized CBM
and shale gas consulting firm. Since 1995 Mr Stevens has
been working with the Government of Indonesia, Chevron,
and other multinationals to high-grade CBM resources and
develop current CBM regulations in Indonesia.

Alan Charuk, President & CEO, Director: over 20 years of

experience in the formation and financing of resource
companies in emerging markets including Indonesia,
Nicaragua, Colombia and Cuba. Substantial on the ground
emerging market experienced.

Jim Charuk, Bsc Geology, VP Exploration, Director: over 20

years experience in the oil & gas exploration and production
industry. Managed reservoir identification, evaluation, and
exploitation programs on six continents, as well as a
worldwide drill technology program for Chevron.

Adam Clarke, VP Corporate Development, Director: former

Managing Partner of Expedition Capital (HK) and Senior
Managing Director Bear Stearns Asia (HK). 20 years of oil &
gas investment related experience in the Asia-Pacific region
including Indonesian oil & gas and coal industries.

Keith Potter, Consultant-General Manager, Indonesia: over

29 years of international oil and gas industry experience, 12
years CBM experience and 10 years Indonesia experience.
Former President Director of PT Seamgas, a subsidiary of
Westside Corporation and PT Bumi Resources, which
discovered 3 TCF CBM.

Dr. James Friberg, Ph.D. Sedimentology, Director: former

President of Black Gold Energy (Indonesia) - which was
acquired by Niko Resources for CAD300 mn in 2009 Exploration Manager for Unocal Indonesia (now Chevron)
and Unocals Chief Geologist Worldwide.

Dr. Harvey Price, Ph.D. Mathematics, VP CBM

Technologies: helped develop the first theories on coalbed
methane's commercial viability. Dr. Price managed the
worlds first simultaneous coal mine degasification and
methane production venture.

Charles Bloomquist, P.Eng, VP Operations, Director:

petroleum engineer with over 30 years experience in North
America, Africa and Asia. Worked with Indonesias National
Oil Company Pertamina to manage drilling projects in
Sumatra.

Asia-Pacific CBM
Oil Major View: Indonesia Looks Like Australia & USA - Not Like China

CBM Gas In
Place
Reservoir
Quality

USA

China

>500 Tcf

>500 Tcf

Major Oil
Company
CBM Activity

>500 Tcf

Indonesia

453 Tcf

Excellent:

Challenging:

Excellent:

Excellent:

Mostly High Gas

Saturation &
Permeability

Low Gas
Saturation &/or
Permeability

Mostly High Gas

Saturation &
Permeability

Mostly High Gas

Saturation &
Permeability

Fully Mature

Struggling

Development: AUD30bn of
mergers/acquisitions

Exploration: Land grab and

de-risking now underway

Production: 5 Bcf/d

Production: only 145

MMcf/d after 20 years

Production: >600 MMcf/d after

8 years - likely to outstrip USA
by 2020

Multi-billion dollar
consolidation likely to occur
as in Australia

Development
Stage

Australia

BHP, BP,
ConocoPhillips,
Chevron all tested
CBM but then left due
to poor geology.

Why Indonesian CBM?

Substantial Resource Potential: 453 Tcf

1
2
3
4
5
6
7
8
9
10
11

Basin
S. Sumatra
Barito
Kutai
C. Sumatra
N. Tarakan
Berau
Ombilin
Pasir/Asem
NW Java
Sulawesi
Bengkulu
Total

Completeable
Target
Coal
Coal
Average
Formation
Thickness (m)
Rank (Ro%)
Depth (m)
Province
S. Sumatra/Jambi
M.Enim
37
0.47
762
S. Kalimantan
Warukin
28
0.45
915
E. Kalimantan
Prangat
21
0.50
915
Riau
Petani
15
0.40
762
E. Kalimantan
Tabul
15
0.45
701
E. Kalimantan
Latih
24
0.45
671
Riau
Sawaht
24
0.80
762
S. Kalimantan
Warukin
15
0.45
701
Java
T.Akar
6
0.70
1,524
Sulawesi
Toraja
6
0.55
610
Bengkulu
Lemau
12
0.40
610
Source: SPE 88630, ^Resource estimates are not NI 51-101 compliant

High
Graded Area
(km2)
7,350
6,330
6,100
5,150
2,734
780
47
385
100
500
772
30,248

CBM Resources
Completeable
(Tcf)^
183
102
80
53
18
8.4
0.5
3.0
0.8
2.0
3.6
453

Why Indonesian CBM?

Low Geological Risk: Abundant Conventional and Coal Control Data
Depth
(Feet)

Mud Gas Units Unknown

0

100 200 300 400

Fm 1

Sekayu PSC: 8 conventional wells inside and 6

outside the PSC area, substantial seismic coverage

Thick Coal Seams with Gas Kicks

500

CBM SE-02
CBM SE-04

Fm 2

CBM SE-03

1,000

CBM SE-01

1,500

2,500

JAF01525.CDR

Fm 3

2,000

Hulu PSC: covered by seismic, two conventional wells

to the north of the block.

Kutai West PSC & Kutai II PSC:

covered by seismic with
significant conventional well
control data available

Bentian Besar PSC: covered by seismic

and one conventional well in the
extension area

Why Indonesian CBM?

Low Capital At Risk: USD6.5 mn to USD9.0 mn per PSC
LOW CAPEX EXPLORATION PHASE
100%

DERISK RATE

80%

Acquisition
USD2.5-3.0 mn
Study
USD300-500K
Signature Bonus
USD1.0mn
Performance Bond
USD1.0-1.5mn

60%

HIGH CAPEX DEVELOPMENT

Exploration Phase I
Coring/Prod Tests
USD4-6 mn

Exploration Phase II
Pilot Tests
USD6-10 mn

Determine:
coal depth
permeability
gas content
initial flow rates
resource audit

Determine:
well spacing
well type
reserves audit
commercialization
contracts

DIVESTITURE
ASSET SALE

Development Phase
production ramp up
cost reduction
asset sale/jv potential

Risk Capital
Acquisition and 1st Exploration Phase

Capex Trend
relatively modest
pre development

40%

20%

Value Creation Trend

rapid increase

0%
Long Term
Gas Sales

Develop
Build Out

Gas
Contract

Develop
Plan

Pilot
Gas Sales

Production
Test

Core
Drilling

G&G
Study

Evaluation
Study

EXPLORATION AND DEVELOPMENT CYCLE

CBM Asia
Investment Target: 20X Risked Return on Exploration Investment
Study Case: Sekayu PSC
Low Geological Risk: deep, gas-charged coal seams in Sumatra are known from abundant conventional oil & gas data; well logs,
seismic, and geochemical data.
Gross Investment: approximately USD9.3 mn (includes USD1.0 mn signature bonus).
Gross Recoverable Resources: 1.06 Tcf (177 MMboe) of unrisked gross recoverable prospective resource as per NSAI report.*

USD9.3 mn = 1.06 TCF (177 MMboe) of gross recoverable prospective resources

Gross Cost = USD0.01/Mcf

Cost Reduction To Increase Return: CBM Asia management believes as operator of two new blocks it can drive capex down by at least
30% as compared with the Sekayu study case.
Drilling: ~50% cost savings by drilling small-diameter slimhole core wells to conduct critical desorption pressure (CDP) tests rather
than costly full-sized wells. This technique is widely used in North America and Australia but not yet in Indonesia.
Contractor: ~20-30% cost savings by engaging a contract driller to drill development well program over several blocks.
Administration: ~40% cost reduction by fast tracking project implementation and spreading team costs over multiple projects rather
than just one as is the case of Sekayu.
* As of September 30, 2011. The low and high estimates are 0.319 Tcf and 2.056 Tcf, respectively. See Page 29 for important notes in
regards to resource estimates.
9

Indonesia CBM
Value Potential: 1.0 Tcf NPV10 Model = USD400-700 mn
1.0 Tcf Recoverable CBM Project Value Sensitivity (NPV10)
Indonesia CBM PSC terms dictate contractor after-tax take
is approximately 45%. Based on these terms and the
following recovery, capex and operating assumptions:
1. Estimate ultimate recovery (EUR) /well: 1.0 Bcf
2. Drilling, completion & gathering costs/well: USD763 K
3. Operating costs: USD0.82/Mcf
1.0 Tcf of recoverable resources result in an in-the-ground
pre-development value estimate range USD417-667 mn
based on likely realized gas price range of USD6.008.00/Mcf (with 3% annual escalation rate). To achieve an
80% confidence level in the NPV(10) value requires
approximately USD20 million of capex.
USD2.5-3.0 mn - signature bonus, study and
performance bond
USD4.0-6.0 mn - 4 core wells and production tests to
prove gas content, permeability, coal thickness and gas
saturation.
USD6-10.0 mn - two pilot projects to prove
commercialization.

1,000

USD/Mcf

USDmn

1.20

900
1.00

800
700

0.80

600
500

0.60

400
0.40

300

200

0.20

100

0.00
4.00

5.00

6.00

7.00

8.00

9.00

10.00

Gas Price (USD/Mcf)

Note: This model has been prepared solely for illustrative purposes. It does not represent actual
values associated with CBM Asias current asset portfolio.

10

Indonesia CBM
Value Potential: Australia Transaction Comparison
Queensland

Indonesia

3.50-4.00*
na

5.00-9.50
8.00-12.00

Australias coalbed methane industry has consolidated in recent years. These

transactions provide an indication of potential CBM asset values in Indonesia.

Gas Price (USD/Mcf)

Domestic
Export

Queenslands lower tax regime and lower drilling costs are mostly offset by Indonesias
higher gas prices and established/operating infrastructure pipeline/LNG facilities.

Fiscal Regime
Royalty/Tax
PSC
Royalty
10%
5-10%
MRRT/Profit Petroleum
22.5%
19.6%
Income Tax
30.0%
44.0%
Total Tax
45.5%^
55.0%
* Grant Samuel
^ Queensland Resource Council

Based on 33 reported transactions, the 2P average transaction value is USD1.03/Mcf,

with a 3P average transaction value of USD0.45/Mcf.
4.00
3.50

USD/Mcf

2P avg = USD1.03/Mcf
3P avg = USD0.45/Mcf

2P Transaction Price
3P Transaction Price
Linear (2P Transaction Price)
Linear (3P Transaction Price)

3.00
2.50
2.00
1.50
1.00
0.50
0.00

1
1
2
3
4
5
6
7
8
9
10
11

Jul-03 - Oil Company of Australia Limited

Jul-05 - Fairveiw CSG
Sep-05 - Sydney Gas Joint Venture
Sep-05 - Moura CSG Field
Sep-05 - ATP638P, PL198
Feb-06 - Argyle and Lauren CSG Project
May-06 - CH4 Gs Limited
Jun-06 - Maranbah Gas Project
Jul-06 - Arrow Energy NL
Dec-06 - Queensland Gas Company Limited
Feb-08 - Walloons CSG interest

10

11

12

13

14

15

16

17

18

19

12
13
14
15
16
17
18
19
20
21
22

May-08 - Santos CSG interests

Jun-08 - Arrow Australian CSG Assets
Aug 08 - Sunshine Gas Limited
Sep-08 - Origin Energy CSG Assets
Oct-08 - Queensland Gas Company Limited
Dec-08 - Gloucester Project
Dec-08 - Sydney Gas Limited
Feb-09 - Pure Energy Resources Limited
Apr-09 - Tipton West Joint Venture
Apr-09 - ATP788P
Jul-09 - Narrabri Gas Project

20

21

22
23
24
25
26
27
28
29
30
31
32
33

23

24

25

26

27

28

29

30

31

32

33

Jul-09 - Eastern Gas Star Limited

Dec-09 - ATP650
Mar-10 - Dawson SeamGas CSG Fields
Mar-10 - Arrow Energy Limited
Sep-10 - Glandstone LNG
Sep-10 - Apollo Gas Limited
Dec-10 - Gladstone LNG
Apr-11 - Australia Pacific LNG
Apr-11 - ATP688P & ATP769P
Jul-11 - East Star Gas Limited
Source: Grant Samuel
Jul-11 - Narrabri Gas Project

11

Indonesia Natural Gas

Commercialization & Price: LNG, Steam Flood, Electricity & Industry
Bongtang LNG
Capacity: 22.3 MMtpa
Utilization Rate: 75%

Singapore Market
+USD11-15/Mcf

Chevron Duri Steam Flood

+USD11/Mcf Linked to oil
price

Grissik-Duri Pipeline
Length: 563 km
Capacity: 420 MMcf/d

KUTAI II

Grissik-Singapore Pipeline
Length: 477 km
Capacity: 350 MMcf/d

HULU
SEKAYU

Grissik

South Sumatra Market

Pop: 16.9mn
GRP/capita: USD1,923
Gas Price: +USD5-7/Mcf

West Java Market

Pop: 63.3 mn
GRP/capita: USD2,540
Gas Price: +USD6-10/Mcf

North Asia LNG

Exports
+USD15/Mcf Linked
to oil price

BESAR

South Sumatra
West Java I & II Pipeline
Length: 1,000 km
Capacity: 970 MMcf/d

KUALA
KAPUAS I

KUTAI WEST

Java LNG Imports

USD11/Mcf
11% of oil price
West Java LNG
500 MMcf/d
Semarang

Central Java LNG

400 MMcf/d

Proposed Kalimantan
Java Pipeline
Length: 1,219 km
Capacity: 1,000 MMcf/d

East Java Market

Pop: 39.56 mn
GRP/capita: USD1,852
Gas Price: +USD6-8/Mcf

12

Indonesia Natural Gas

Conventional Gas Production & Reserves: Declining
1,400

N.Sumatra

1,200
1,000

800

North Sumatra Reserves

2P Recoverable: 15.8 Tcf
2P Remaining: 629 Bcf
Technical: 2.4 Tcf
Natuna Reserves
2P Recoverable: 4.9 Tcf
2P Remaining: 3.3 Tcf
Technical: 46.3 Tcf

600
400
200

4,500
4,000
3,000
2,500
2,000
1,500
1,000
500

Natuna

2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001

800
700

Kutei/Makassar

3,500

2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001

Kutai /Makassar Reserves

2P Recoverable: 39.5 Tcf
2P Remaining: 12.7 Tcf
Technical: 3.0 Tcf

600
500

Central & South Sumatra

Reserves
2P Recoverable: 13.0 Tcf
2P Remaining: 6.6 Tcf
Technical: 3.3 Tcf

400

300
200

100

1,800
1,600

S. Sumtara

2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001

0
2,000

C. Sumtara

1,400

East Java Reserves

2P Recoverable: 8.5 Tcf
2P Remaining: 3.7 Tcf
Technical: 2.4 Tcf

1,200
1,000

800
600

400
200

1,400
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001

1,200

E. Java

1,000
800

350
300

600

W. Java

400

250
200
150
100

Production: MMcf/d

Source: CBM Asia and public sources

2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001

50

200
0

2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001

West Java Reserves

2P Recoverable: 2.6 Tcf
2P Remaining: 524 Bcf
Technical: 3.3 Tcf

13

Indonesia Natural Gas

Natural Gas Supply/Demand Trends Domestic and Export
Indonesia: gas consumption per capita of 6.1 Mcf/year far below world average of
16.6 Mcf/year or economic peers of 20 Mcf/year. Production unlikely to match
demand growth supporting strong domestic prices.

Indonesia: Gas Demand & Production

3,000
Production
Consumption

Asia: demand outstripping supply - 9.5 Bcf/d deficit. 2.6 billion people (China, India
and Vietnam - 40% of worlds population) consume less than 2.4 Mcf/capita or 1/6
the world average. The potential for a surge in demand supports export pricing.

2,000

1,000

Pop
mn

GDP /
Capita
USD

Australia
Bangladesh
China
India
Indonesia
Japan
Korea, South
Malaysia
New Zealand
Pakistan
Philippines
Singapore
Taiwan
Thailand
Vietnam

22
149
1,338
1,171
240
127
49
28
4
174
93
4
23
69
87

42,131
675
4,428
1,475
2,946
42,831
20,757
8,373
26,932
1,073
1,820
36,968
16,422
4,169
1,166

Africa
Asia
Eurasia
Europe
C&S America
Middle East
North America
World

1,025
3,780
286
574
475
216
457
6,815

BCF

NATURAL GAS
2010

2010

2008

2006

2004

2002

2000

1998

1996

1994

1992

1990

1988

1986

1984

1982

1980

Asia-Pacific: Gas Demand & Production

20,000
Consumption
Production

15,000

10,000

BCF

5,000

-------- Consumption -------------- Production --------- Surplus/(Deficit) -Mcf /

Bcf /
10 Year
Mcf /
BCF /
10 Year
Mcf /
BCF /
Capita / Y
Day
Growth Capita / Y
Day
Growth Capita / Y
Day

2010

2008

2006

2004

2002

2000

1998

1996

1994

1992

1990

1988

1986

1984

1982

1980

51.1
4.8
2.8
1.9
6.1
29.2
31.0
40.3
33.7
8.1
1.1
67.4
22.8
23.0
3.3

3.1
1.9
10.3
6.2
4.0
10.2
4.1
3.1
0.4
3.8
0.3
0.8
1.5
4.4
0.8

36%
95%
287%
168%
101%
28%
111%
28%
-35%
81%
1330%
612%
122%
90%
532%

77.5
4.8
2.5
1.6
12.2
1.4
0.6
76.4
34.8
8.1
1.1
0.0
0.4
18.5
3.3

4.7
1.9
9.1
5.1
8.0
0.5
0.1
5.9
0.4
3.8
0.3
0.0
0.0
3.5
0.8

46%
95%
211%
117%
55%
-10%
na
29%
-33%
81%
1330%
na
-69%
94%
531%

26.3
0.0
-0.3
-0.4
6.1
-27.8
-30.4
36.1
1.1
0.0
0.0
-67.4
-22.4
-4.5
0.0

1.6
0.0
-1.2
-1.2
4.0
-9.7
-4.1
2.8
0.0
0.0
0.0
-0.8
-1.4
-0.9
0.0

3.5
5.4
73.5
35.9
10.2
61.3
63.8
16.6

9.7
56.1
57.5
56.5
13.3
36.3
79.9
309.4

56%
92%
9%
15%
37%
88%
9%
29%

7.2
4.5
91.8
18.9
11.2
77.0
62.8
16.4

20.2
46.6
71.9
29.7
14.6
45.6
78.6
307.1

59%
77%
8%
-2%
46%
108%
4%
26%

3.7
-0.9
18.3
-17.1
1.0
15.7
-1.0
-0.1

10.5
-9.5
14.3
-26.9
1.3
9.3
-1.3
-2.3

Source: EIA and World Bank

14

CBM Asia
Asset Portfolio: Four Awarded PSCs, One Application
Area

--- Sumatra --South

Central

PSC Name

Sekayu

Hulu

PSC Granted

PSC Granted
Waiting on
Extension
Approval

12%
12%

PSC Status
CBMA Working Interest
Right to Acquire1

Operatorship and Technical Leader

- Operator
PT Medco
- Technical Lead
JSSE/Medco
Partners
- CBM Asia
- South Sumatra Energy
- Kutai West CBM
- Newton Energy
- PT Medco
- Ephindo Energy
- Other
Acreage with Extensions (km2)
- Gross
- Net

--- Kalimantan --East

East
Kutai II3
Besar

South
Kuala Kapuas I

PSC Granted

PSC Granted
Waiting on
Extension
Approval

PSC Granted
Ownership in
Abritration

Application For PSC

Submitted

70%
na

18%
na

70%
na

40%
na

80%
na

CBMA
CBMA

Newton
CBMA

CBMA
CBMA

Ephindo
Ephindo

CBMA
CBMA

70%

40%

80%

70%

Total
Ex
Kutia-II

50%
45%
55%
50%
60%
30%
580
139

1,983
1,388

Recoverable Prospective Resource (BCF) - Best Estimates

- NI 51-101 Compliant (Gross)
1,062
na
- NI 51-101 Compliant (Net)
254
na
Geological Data Estimates (CBM Asia)
Usuable Area
Net Coal Thickness (ft)
Gas Content (scf/ton)
Ash+Moisture Content
Coal Density (ton acre/foot)
Permeability (mD)
Recovery Rate

East
Kutai-West2

80%
158
120
20%
1,800
187
55%

55%
114
130
20%
1,800
187
55%

30%

20%

869
156

1,930
1,351

560
224

1,501
1,201

6,863
4,236

na
na

na
na

na
na

na
na

1,062
254

65%
98
160
15%
1,800
25
55%

75%
82
160
15%
1,800
25
55%

45%
98
160
15%
1,800
25
55%

50%
193
110
28%
1,800
25
55%

1. Through South Sumatra Energy - CBM Asia has the right to acquire, indirectly, a 12% participating interest in the Sekayu PSC, together with the exclusive right to
secure financing, indirectly, on behalf of an additional 12% participating interest in the Sekayu PSC. 2 Kutai West CBM: (Ephindo Ilthabi CBM Holding 60%, CBM Asia
40%), 3. CBM Asia has a participation agreement to acquire 40% of Kutai II PSC - ownerships rights are in dispute and under arbitration in Singapore.

15

CBM Asia Use of Proceeds

Strategy: Derisk Minority Stakes Then Sell to Finance Majority Stakes
2012 Budget

Asset Derisk Level / Value

80%

Sekayu: CAD2.7 mn - 5 well pilot & two core

wells. Target: first production & sales and
upgrade resources to 1P, 2P, 3P reserves and
contingent resource. 70% derisked.

60%

40%

Kutai West: CAD2.5 mn - 2 core wells and 2

production wells. Target: establish NI 51-101
compliant contingent resource estimate. 50%
derisked.

Asset Sale

20%

0%
2009

2010

Sekayu

2011
Kutai West

2012
Hulu

2013
Besar

2015

Financed With Equity/Asset Sale Proceeds

Financed With Equity

CAD mn
Overhead
Projects:
Support
Sekayu
Kutai West
Hulu
Besar
Kuala Kapuas I
New PSC 1
New PSC 2
New PSC 3
Total

2014
New PSCs

1H 09
0.9

2H 09
1.1

1H 10
0.6

2H 10
0.7

1H 11
0.9

2H 11
1.1

1H 12
0.9

2H 12
0.9

1H 13
0.9

2H 13
0.9

1H 14
0.9

2H 14
0.9

1H 15
0.9

2H 15
0.9

0.1
0.0
0.2

0.2
1.4
0.1

0.1
0.8
0.2

0.2
1.0
0.0

0.1
1.3
0.2

0.4
1.7
0.9
1.0
1.0
0.0

0.9
1.0
2.4
0.6
0.6
2.0

1.0
1.3
0.3
0.4
0.4
0.4

1.0
1.3
1.8
5.5
5.4
4.9

1.0

1.0

1.0

1.0

1.0

1.8
4.5
4.5
3.7

4.5
4.5
5.7

0.2
0.2
1.5

0.0

0.0

1.9

1.9

Not Yet Budgeted

1.2

2.8

1.7

1.9

2.5

6.1

8.3

4.7

20.7

16.4

16.6

3.7

16

CBM Asia
Asset Portfolio: Event Time Line (2011-2013)

Note: Scheduling may change due to

regulatory, equipment, technical and
capital developments

1Q 2012: Kutai West, core well results expected

1Q-2Q 2013: Sekayu - divest interest

2Q 2012: Sekayu, pilot drilling commences

2Q-3Q 2013: Kutai West - divest interest

2Q 2012: Kaula Kapuas I, PSC award expected

1Q 2013: Hulu PSC, core drilling program starts

3Q 2012: Sekayu, first production and revenue

2Q 2013: Besar PSC, core drilling program starts

3Q 2012: Kutai West, resource audit

2Q 2013: Kuala Kapuas I, core drilling program starts

4Q 2012: Kutai West, pilot drilling expected

3Q/4Q 2013: Hulu, Besar and KK I PSCs, resource audit

1Q11
Sekayu
Cycle

2Q11

3Q11

4Q11

1Q12

Coring/Prod Test

Reserve Audit
Gas Sales

2Q12

3Q12

4Q12

1Q13

2Q13

Pilot Planning & Drilling

Resource

4Q13

Divest Interests - Channel

Proceeds Into Exploration

Proved

Contingent

3Q13

Test

Kutai West
Coring/Prod Test

Cycle
Reserve Audit
Gas Sales
Hulu
Cycle
Reserve Audit
Gas Sales
Besar
Cycle
Reserve Audit
Gas Sales
Kuala Kapuas I
Cycle
Reserve Audit
Gas Sales

Pilot Planning & Drilling

Resource/Contingent
Proved
Test

Divest Interests Channel Proceeds

Into Exploration

Purchase

Extension Approval

Coring/Prod Test
Resource

Pilot

Purchase

Extension Approval

Coring/Prod Test
Resource

Pilot

Application Approval

Coring/Prod Test

17

Sekayu PSC
The CBM SWEET SPOT - 2 Wells Flowing Gas to Surface
SE-CBM-03
Immediate Gas To
Surface.

CBM Asia

4
3
1

Short Distance to
Gas Pipeline.

Lemigas CBM Pilot:

flowed gas
demonstrating gas
saturation.

SEKAYU PSC
Gross Area: 580 km2
Gross Unrisked Recoverable Prospective Resource:
1.06 Tcf Best Estimate.
Commercialization: close to Trans Sumatra Gas
Pipeline. Early stage commercialization focused on
small scale power production.
Operation Calendar:
2Q 12: Production Pilot, 3Q 12: First production

18

Sekayu PSC
Superior to USA Analog: Powder River Basin
Depth
(Feet)

Mud Gas Units Unknown

0

100 200 300 400

South Sumatra geology compares favorably with

Powder River Basin (Wyoming, USA), which most
experts consider the best commercial analog for
Indonesia.

Fm 1

500

1,000

Fm 2

The Powder River Basin is the worlds second largest CBM

field, producing 1.5 Bcf/d and expected to recover 30 Tcf.

1,500

2,500

Reservoir
Property
Depth (ft)

Wyoming USA
Powder River
Big George Coal
Variable
Source

JAF01525.CDR

Fm 3

2,000

Well test results indicate that Sekayu CBM reservoir

conditions are significantly better than in the Powder
River Basin.

Indonesia
South Sumatra
Sekayu PSC
Variable
Source

indicates better result at Sekayu

Comment

1,200

BBC

2,000

Well Logs

Deeper = more pressure, higher potential gas content

Coal Thickness (ft)

120

BBC

147

Well Logs

Thicker = more potential gas in place

Coal Rank (Ro)

0.3%

USGS

0.3%-0.4%

Lab Test

Higher Rank = higher potential gas content

50

USGS

>100

Corelab

Higher Gas Content = more potential gas in place

Gas Saturation

60%

USGS

95%

Permeability (mD)

500

USGS

500

Medco

Comparable

Gas Price of 10% ROE (USD/Mcf)

4.22

BBC

TBD

Testing

Sekayu looks favorable but requires production testing

Current Gas Price (USD/Mcf)

2.50

NYMEX

5.50-9.40

Medco

Higher gas prices in Sumatra

Gas Content (ft3/ton d.a.f)

Weatherford Higher Saturation = faster potential gas production

Source: BBC = Bill Barrett Resources 2011. USGS = US Geological Survey, 2004

19

Kutai West PSC & Kutai II PSC

Adjacent to BPs Sanga-Sanga PSC and Bontang LNG
Dart Energy Flowed
Gas to Surface

KUTAI WEST PSC

km2

Gross Area: 869

Working Interest: 18% & technical lead
Commercialization: adjacent to Bontang LNG gas trunk line
Operation Calendar: 4Q 2011: core well drilling 3Q 2012:
resource audit

KUTAI II PSC
km2

Well 2B
Complete

Gross Area: 560

original area
Working Interest: 40% (interest level in arbitration)***
Commercialization: adjacent to Bontang LNG gas trunk line
Operation Calendar: NA

RECENT DEVELOPMENTS BY MAJORS

Moving Rig to
Well 2C

TOTAL: in March 2011 acquired PSC in Kutai Basin,

Kalimantan. TOTALs first coalbed methane block worldwide.
Located close to CBM Asias Kutai West PSC interests.
BP: Continues to test their first CBM PSC at Sanga-Sanga,
immediately east and adjacent to CBM Asias interests at Kutai
West. Recently acquired Sanga-Sanga West PSC.

SANGA-SANGA PSC
WORLDS FIRST CBM TO LNG
BP/ENI has been exporting CBM from Bontang as LNG since
March 2011 world first. ENI estimates the PSC holds as
much as 13Tcf (non 51-101 compliant) in CBM resources.

20

N. Sumatra Basin

INDONESIA

C. Sumatra Basin

Indragiri Hulu

S. Sumatra Basin

Tertiary Basin

Hulu PSC
Central Sumatra: 70% Working Interest and Operated

USD11/Mcf

HULU PSC: GEOLOGICAL

DERISK
Significant seismic coverage
over sweet spots and two
conventional wells providing
coal thickness and gas
indication data.

HULU PSC
Working Interest: 70% &
operatorship
Gross Area: Current: 519 km2
With Pending Extensions: 1,983 km2
Commercialization: Adjacent to
Gassik-Duri pipeline: Duri steam
flood, local power & industrial sales.
Operation Calendar:
1Q 13: Exploration

21

Bentian Besar PSC - Kalimantan

Kalimantan: 70% Working Interest and Operatorship
BENTIAN BESAR PSC
Working Interest: 70% & operatorship
Gross Area: Base 830 km2, With Pending
Extension: 1,930 km2
Commercialization: Bontang LNG, industry
and power generation
Operational Calendar: 1Q 13: Exploration

BENTIAN BESAR PSC: GEOLOGICAL DERISK

Significant seismic coverage over sweet spots and one conventional
well in the main sweet spot indicating 261 ft of net coal thickness.

22

Kuala Kapuas I Application

Kalimantan: 80% Working Interest and Operatorship
KUALA KAPUAS I APPLICATION
Working Interest: 80% & operatorship
Gross Area: 1,500 km2
Commercialization: Mini-LNG / Kalimantan-Java Pipeline
Operational Calendar: 2Q-3Q 12: Secure PSC through
Application Process 2Q 13: Exploration

KUALA KAPUAS I APPLICATION: GEOLOGICAL DERISK

15 conventional wells in adjacent blocks, seismic coverage
and large airborne gravity survey over entire block.

RECENT DEVELOPMENT BY
MAJORS
Depth
(Feet)

Mud Gas Units Unknown

0

100 200 300 400

Fm 1

BP: acquired three CBM PSCs in

the Barito Basin.

500

ExxonMobil: drilling 19 CBM test

wells at four CBM PSCs in the
Barito Basin.

Fm 2

1,000

1,500

2,500

JAF01525.CDR

Fm 3

2,000

23

Growth Opportunities
JAA, Opportunistic Acquisitions, NOC Partnership and CBM to Liquids
Distressed CBM Opportunities

CBM Asia is investigating all existing CBM PSC to determine acquisition or merger opportunities. Recent activities include the
acquisition of 70% interest and operatorship in two PSCs.

New Area CBM Opportunities

CBM Asia is investigating CBM bidding rounds for new acreage offered by the Indonesian government.

Asian Oil Company Partnership Program

CBM Asia is actively engaged with several Asian oil and gas companies to form a joint venture to explore for CBM opportunities in
Indonesia.

CBM to Liquids

CBM Asia is actively engaged with Indonesian coal mining groups in

regards to producing stranded CBM on their properties as feedstock for
gas to liquids conversion. Very high logistical margins available due to
high diesel prices at coal mining sites.

24

Indonesian CBM PSC Terms

Fiscal Flow=45% After Tax; Most Favorable Terms In Country
Indonesia

GROSS PRODUCTION

Contractor

FTP 5-10%
(19.6 -21.8%,100% )

(-) FTP (5-10%)

FTP 5-10%*
(78.2-80.4%)

(-) Cost Recovery (90100%)

* Royalty split with

government in
some contracts.

Revenue Flow
Revenue

minus FTP
(royalty)

minus Cost
Recovery
(formula to recover
capex and opex)

Profit Petroleum Split

= Profit Split
Contractor Share
(78.1 - 80.4%) (gas)

Indonesia Share
(19.6 - 21.8%) (gas)

(government and
contractor)

Domestic
Market
Obligation

(-) DMO (25%)

(+) DMO Fee

(no price
adjustment)

Taxable Income

- Income Tax

(-) Income Tax (44%)

INDONESIA TAKE

CONTRACTOR TAKE

= Contractor
Take
25

CBM Asia
Operating Partners and Service Companies
Operating Partners

Service Companies

Tanito Coal
One of Indonesias largest coal producers exporters with 2008
production of 7.0 mn tonnes. Operating in Kutai block for over
20 years. Significant mining and civil engineering infrastructure
within areas covered by the Kutai-West PSC including extensive
roadway development.

Technical Advisors
Advanced Resources International, Inc.
Current

PT Medco Energi
Indonesia's leading independent oil and gas company (JSX:
MEDC), market capitalization approximately USD1.2 billion.
PT Ephindo
Jakarta-based CBM venture of top Indonesian O&G executives.

B.P.I.
Future
Maxidrill
Welldog (Gas Sensing Technology Corp)
PT Bormindo Nusantara
Schlumberger Limited

26

CBM Asia
Corporate and Financial Highlights
Listings:
Canada: TSX Venture Exchange symbol TCF
Germany: Frankfurt Stock Exchange symbol IY2
USA: OTC CBMDF
Reporting Jurisdictions: British Columbia, Alberta, Ontario
CUSIP Number: 1248XC101
Head Office:
CBM Asia Development Corp.
404 - 815 Hornby Street
Vancouver, British Columbia
Canada V6Z 2E6
Legal Counsel: Canada
Gregory T. Chu, A Law Corporation
650- 1188 West Georgia St.
Vancouver, British Columbia
Canada, V6E 4A2

Legal Counsel: Singapore

Drew & Napier LLC
10 Collyer Quay
#10-01 Ocean Financial Centre
Singapore , 049315

Share and Warrant Issue History:

Date
Aug-08
Oct-09
Mar-11
Mar-11
Jul-11
Dec-11
Feb-12
Mar-12

No. of Shares
mn
8.2
11.0
4.3
5.7
13.4
7.2
16.3
49.6

*as of March 12, 2012

Price CAD

Raised CAD
mn

Warrants
Attached

0.60
0.30
0.15
0.17
0.32
0.18
0.18
0.18

4.9
3.3
0.6
1.0
4.3
1.3
2.9
8.9

0.50
1.00
na
na
1.00
1.00
1.00
1.00

Exercise Price
CAD
Period Years
0.90
0.40
na
na
0.55
0.35
0.35
0.35

2
3
na
na
2
2
2
2

Outstanding Issued Shares: 151.9 mn*

Outstanding Warrants: 96.0 mn (CAD36.2 mn value)*
Outstanding Options: 14.0 mn (CAD2.9 mn value)*
Fully Diluted Shares: 261.9 mn*
Cash: CAD9.9 mn*
Debt: Nil*

Share Ownership Structure*

Management

Transfer Agent and Registrar:

Computershare Trust Company of Canada
3rd Floor, 510 Burrard Street
Vancouver, British Columbia
Canada, V6C 3B9
Auditors:
BDO Canada LLP
600 Cathedral Place
925 West Georgia Street
Vancouver, British Columbia
Canada, V6C 3L2

14%

Institutions
Professional

Other

47%
30%

9%

27

CBM ASIA
Contact Information
Mr. Alan Charuk, President & C.E.O.
email: acharuk@cbmasia.ca
Phone: (604) 684 2340 (Canada)
Mr. Adam Clarke, VP Development
Email: adam.clarke@cbmasia.ca
Phone: (852) 9106 4969 (Hong Kong)

KUTAI WEST

BESAR

HULU
SEKAYU

KUTAI II
KULUA
KAMPAUS I

28

Disclaimer
STATEMENTS CONCERNING SEKAYU PSC ESTIMATES
1. A Production Sharing Contract (PSC) between CBM Asia and its Partners and the Indonesian Government executed for Sekayu gives CBM Asia
and its Partners the right to explore for coalbed methane. If a commercial discovery is made, CBM Asia and its Partners have the right to develop
and produce from Sekayu.
2. The NSAI figures represent recoverable unrisked gross (100%) prospective gas resources for the Sekayu PSC as a whole and not CBM Asias
participating interest therein. CBM Asia has the right to acquire, indirectly, a 12% participating interest in the Sekayu PSC, together with the
exclusive right to secure financing, indirectly, on behalf of an additional 12% participating interest in the Sekayu PSC.
3. The NSAI prospective resources have been estimated using deterministic methods and are dependent on a CBM discovery being made. If a
discovery is made and development undertaken, the approximate probability that the recoverable volumes will equal or exceed the unrisked
estimated amounts is generally inferred to be 90% for the low estimate, at least 50% for the best estimate, and at least 10% for the high estimate.
4. Prospective resources are those quantities of petroleum estimated, as of a given date (being September 30, 2011), to be potentially recoverable
from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of
discovery and a chance of development. The chance of commerciality is the product of these two risk components. There is no certainty that any
portion of the prospective resources will be discovered. If a discovery is made, there is no certainty that it will be developed or, if it is developed,
there is no certainty as to the timing of such development or that it will be commercially viable to produce any portion of the prospective
resources. Prospective gas resources are undiscovered resources that indicate exploration opportunities and development potential in the event a
commercial discovery is made and should not be construed as reserves or contingent discovered resources.

5. For a further discussion of the risks and uncertainties associated with the recovery of unrisked prospective resources and other significant
factors relevant to the above estimates, please refer directly to NSAIs technical report entitled Estimates of Unrisked Gross (100 Percent)
Prospective Gas Resources located in the Sekayu Block South Sumatra Basin, Indonesia as of September 30, 2011 filed on SEDAR at
www.sedar.com and posted on the Companys website at www.cbmasia.ca.

29

Disclaimer
6. The BOE (barrels of oil equivalent) figures for the Sekayu prospective resource estimates contained in this presentation have been derived by
converting prospective resources of gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil (6 Mcf: 1 bbl). BOEs may be misleading,
particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable to
the burner tip and does not represent a value equivalency at the wellhead.

TERMS OF USE AND DISCLAIMER - This presentation is being provided for the sole purpose of providing the recipients with background information
about CBM Asia Development Corp. (CBM Asia). Other than disclosures relating to CBM Asia, the information contained in this presentation is based
on current public information that we consider reliable. CBM Asia has made reasonable efforts to ensure that the information contained in this report
is accurate as of the date hereof, however, there may be inadvertent or occasional errors. No representation, warranty or guarantee, express or
implied, is made as to the fairness, accuracy, completeness or correctness of information contained in this presentation, including the accuracy,
likelihood of achievement or reasonableness of any forecasts, prospects, returns or statements in relation to future matters contained in this
presentation. The views and information provided herein are based on a number of estimates and assumptions that are subject to significant business,
economic, regulatory and competitive uncertainties. See Forward Looking Statements below. CBM Asia is not liable to any recipient or third party
for the use of or reliance on the information contained in this presentation.
This presentation provides information in summary form only, is not intended to be complete and does not constitute an offer to sell or the
solicitation of an offer to buy any security. It is not intended to be relied upon as advice to investors or potential investors and does not constitute a
personal recommendation or take into account the investment objectives, financial situation or needs of any particular investor. CBM Asia is not
acting as agent or advisor and encourages the use of independent consultants, as necessary, prior to entering into transactions.

30

Disclaimer
FORWARD LOOKING STATEMENTS -. All statements set forth in this presentation, (other than statements of historical fact) including management's
assessment of future plans and operations, are forward-looking statements. By their very nature, forward-looking statements are subject to numerous
risks and uncertainties, some of which are beyond our control. Forward looking statements are based on the opinions and estimates of management
at the date the statements are made, as well as a number of assumptions made by, and information currently available to, CBM Asia concerning,
among other things, anticipated geological formations, well and financial performance, business prospects, strategies, regulatory developments and
approvals, future commodity prices, the existence of future reserves and productions levels of CBM Asias assets, the ability to obtain financing on
acceptable terms, the ability to acquire production and reserves through acquisition, development and exploration activities and that there will be no
significant events occurring outside of CBM Asias normal course of business. Although CBM Asia considers these assumptions to be reasonable based
on information currently available to it, they may prove to be incorrect.
In addition, many of these assumptions are based on factors and events that are not within the control of CBM Asia and there is no assurance they will
prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward looking statements include the
effect of and changes in general economic and market conditions, risks associated with coalbed methane exploration, development, production,
marketing and transportation, loss of markets, industry conditions and competition, volatility of commodity prices, currency fluctuations, imprecision
of resource and/or reserve estimates, environmental risks, changes in project parameters, the possibility of project cost overruns or unanticipated
costs and expenses, labour disputes, competition from other industry participants, the ability to access qualified personnel and field services, failure of
plant, equipment or processes to operate as anticipated, acquisitions not being completed or integrated successfully, decisions by regulators and the
ability to access sufficient capital from internal and external sources, as well as those risk factors discussed or referred to in CBM Asias public filings
with the securities regulatory authorities in those provinces of Canada in which CBM Asia is a reporting issuer and available at www.sedar.com.
Although CBM Asia has attempted to identify important factors that could cause actual actions, events or results to differ materially from those
described in forward looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended.

Readers are cautioned not to place undue reliance on the forward-looking statements as the assumptions used in the preparation of such information,
although considered reasonable at the time of preparation, may prove to be imprecise and actual results, performance or achievements could
materially differ from those expressed or implied in such forward-looking statements and accordingly, no assurance can be given that any of the plans,
intentions, events or expectations anticipated by forward-looking statements will transpire or occur, or if any of them do so, what benefit CBM Asia
will derive therefrom. Actual results will differ and the difference may be material and adverse.
CBM Asia undertakes no obligation to update forward looking statements if circumstances or managements estimates or opinions should change
except as required by applicable securities laws.

31