VANCOUVER, BRITISH COLUMBIA, October 7, 2009 - CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX VENTURE: TCF) (FRANKFURT: IY2) (US: CBMDF) announces that, together with the operator PT Medco Energi Internasional Tbk ("Medco") and Indonesian partner PT Ephindo, they have completed drilling on Indonesia's first commercially drilled coalbed methane test well (CBM-SE-02) in the Sekayu Production Sharing Contract ("Sekayu PSC") block located in the South Sumatra Basin, Indonesia.

Targeting the major coal seams of the Muara Enim Formation, CBM-SE-02 reached a total depth of 1,950 feet penetrating coal seams with cumulative thickness of 90 feet. Within the upper group, the Palembang B, the well penetrated a coal seam with a thickness of 40 feet. The Palembang C seam, also in the upper group of the formation, showed a single 20-foot thick coal seam. In the lower Maura Enim unit, the Pangadang A, three seams with an aggregate coal thickness of 30 feet were encountered over an interval of 60 feet. The test well was cased to 878 feet, with the five coal seams cored using PT Halliburton Indonesia's wireline retrievable coring system. Samples preserved in sealed canisters have been shipped to the Center for Geological Survey, Geological Agency of Indonesia in Bandung, where gas contents and saturations will be determined over the next few weeks. An injection falloff test was successfully conducted in the Palembang B coal to assess permeability.

The Company entered into a binding letter of intent to acquire a participation interest in the 58,349 hectare Sekayu PSC and has committed to fund an initial US$3.25 million in exploration expenditures to prove reserves and submit a plan of development to the Government of Indonesia. "We are pleased with preliminary results from Indonesia's first coalbed methane well, where the coal seams penetrated were consistent with our expectations", stated Mr. Alan Charuk, President and Chief Executive Officer of CBM Asia. "The drilling of this well begins the process of confirming the geological model of the Sekayu block, which was derived in the course of the Joint Evaluation Study, based on extensive subsurface control and 2-D seismic plus geotechnical data provided by the Government of Indonesia. The comprehensive data utilized in this study has greatly increased our understanding of the geology of this massive basin. Medco expects to drill ten more exploratory/evaluation wells by the end of 2010."