CBM Asia Development Corp. has been informed by the operator Newton Energy Capital Limited that the third exploration well (CBM-KW-04) reached target depth (TD) of 1,000 meters on May 26, 2012 at the Kutai West Coalbed Methane Production Sharing Contract (Kutai West CBM PSC) block, located in East Kalimantan, Indonesia. CBM-KW-04 well logs indicate 31 meters of net coal in the Balikpapan Formation which is line with the CBM-KW-01 net coal thickness of 32 meters and is 24% thicker than the 25 meters of net coal found at the CBM-KW-02 well. The drilling rig is now in transit to the next exploration well location, CBM-KW-03, which is south of the first three wells. The CBM-KW-03 well is expected to spud within the next week and will test the continuity of coal targets of the block.