CBM Asia Development Corp. provided an operational update on its coal bed methane properties in Indonesia. On May 23, 2013 Medco Energi, the operator of Sekayu PSC, resumed production testing at the CBM-02 well, installing a new high-capacity submersible pump.

The well is producing a steady 3,000 bbl/day of potable-quality formation water from the Miocene-age Palembang coal seams. Gas production was initiated almost immediately and is increasing as the well dewaters. Gas produced from the well is being consumed on site to drive the down hole pump. Coring operations have been completed at the CBM-01 well.

The company is awaiting final gas content and coal analysis reports. 4 ½" casing has been run, cemented and perforated adjacent to the Palembang C coalseam at a depth of 1,380 - 1,404 feet. Kutai West PSC: Newton Energy plans to begin completion and stimulation operations on four coal seams in the KW-CBM-01 well in September 2013.

Dewatering at this location will follow pending the results of the stimulation program.