2009-09-25-2009-08-24-2009-12-18

Acquired addtl. 24% WI in Sekayu Block PSC, Indonesia.

CBMAsia Development Corp., Vancouver, (Toronto Venture: TCF) has closed its acquisition of 24% of South Sumatra Energy Inc., a subsidiary of Batavia Energy Inc., which holds interests in a production sharing contract in the South Sumatra Basin in Indonesia, in exchange for C$730,000 in cash and C$3.24 million in exploration and appraisal expenditures.

A second cash payment of C$350,000 is due by March 1, 2011, unless the company is able to prepay a reduced amount of C$270,000 by March 10, 2010.

Along with PT Medco CBM Sekayu, South Sumatra Energy holds a production sharing contract for coal-bed methane on a 58,349 hectare block. PT Medco Energi Internasional Tbk, Indonesia's national oil and gas company and operator of the Sekayu Block PSC, has forecast that the first commercial coalbed-methane production will begin in 2011 and peak in six years.

CBM Asia will earn an estimated 12% participation interest in the production sharing contract for committing to exploration and appraisal expenditures over the next three years to determine the commercial feasibility of coalbed-methane production.

CBM Asia president and chief executive Alan T. Charuk has been nominated as a director of South Sumatra Energy.