CBM Asia Development Corp., Vancouver, BC, and Continental Energy Corp., Jakarta, formed a joint study and bid group to investigate coalbed methane opportunities in Indonesia.
The two firms will jointly and exclusively study selected areas in Indonesia to identify geologically favorable areas to be jointly pursued for direct acquisition of CBM production sharing contracts offered by the Indonesian government. Acquisitions would be by public tender or direct proposal tender conducted under joint study arrangements.
Acquired assets would be shared 75% by CBM Asia as operator and 25% by Continental. CBM Asia would pay 100% of general and administrative costs, while all PSC acquisition costs and other joint exploration and drilling costs would be shared proportionally.
The Indonesian government has signed 39 CBM PSCs since 2008.