CBM Asia Development Corp. has been informed by the operator Newton Energy Capital Limited that final gas content lab reports have been completed for the first coalbed methane exploration test well at the Kutai West Coalbed Methane Production Sharing Contract block, located in East Kalimantan, Indonesia. CBM Asia holds an 18% working interest in the Kutai West CBM PSC. Independent Australian-based contractor GeoGAS desorbed a total of 17 samples from the CBM-KW-02 well. Gas content of pure coal samples (ash content less than 15%) ranged from 7.31 to 8.27 m3/tonne (234 to 265 scf/ton), when reported on a dry, ash-free basis. Gas quality was excellent, averaging 96% methane (CH4) with less than 3% CO2 and other inerts. Sorption isotherm data indicate the coals are close to saturated with methane. On March 15, 2012 the drilling rig spud the second of four planned core wells at the Kutai West PSC and is currently drilling ahead below 500 meters. CBM Asia notes that VICO Indonesia, operated by BP and ENI, as well as the Indonesian government have reported that commercial CBM production began in March 2011 from the adjoining Sanga-Sanga PSC and is being exported from the Bontang LNG facility to North Asian consumers.