TIDMSMDR
RNS Number : 3594X
Salamander Energy PLC
13 August 2009
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13 August 2009
Salamander Energy plc
("Salamander" or the "Group")
South Sebuku-1 Exploration Success
South Sembakung Update
Salamander Energy plc, the Asia focussed independent oil and gas exploration and
production company, announces that it has completed drilling operations on the
South Sebuku-1 ("SS-1") exploration well in the Bengara I PSC, East Kalimantan,
Indonesia. Salamander holds a 25% interest in the Bengara I PSC.
The SS-1 well was drilled to a total depth of 1533 metres subsea and encountered
multiple gas bearing sandstones in the Tabul and Meliat formations. Drill stem
tests ("DST's") were conducted across two of the gas-bearing zones, which flowed
at an aggregate rate of 10.9 MMscfd.
An MDT survey was run which identified three gas zones in the Tabul formation. A
DST across one zone at 575 metres sub-sea flowed at a rate of 7.4 MMscfd. In the
deeper Meliat formation, a single zone was tested at a depth of 1250 metres
sub-sea which flowed at a rate of 3.4 MMscfd.
The SS-1 well has been suspended as a potential future producer and the Bengara
I partners are in discussion with the authorities with a view to appraisal
drilling on the South Sebuku discovery in 2010.
The discovery is located approximately 15 km from the South
Sembakung gas-condensate field in the neighbouring Simenggaris PSC, in which
Salamander has a 21.6% interest. The partners are evaluating the potential for
tying in South Sebuku to the South Sembakung gas-condensate field, which
received formal development approval last year.
Heads of agreement for gas sales from South Sembakung were signed on 4 August
with PT Pertamina Gas (Pertagas) and PT Medco Gas Indonesia. Under these terms
approximately 20 MMscfd will be supplied over an eleven year period at a minimum
price of $3/Mcf with an inflator indexed to methanol prices. The gas is to be
sent to the nearby Bunyu Island Methanol plant, via. a pipeline that will be
constructed by the consortium of buyers, and production is expected to commence
in late 2011.
James Menzies, Chief Executive of Salamander, commented:
"We are pleased to have made a discovery which we expect to lead to our second
development in the Tarakan Basin. With gas sales arrangements in place, we can
proceed with appraisal and development work with a view to bringing new source
production on-stream in 2011. In addition, the partners have identified material
exploration potential for both oil & gas in both the Simenggaris and Bengara-I
licences, through which we aim to add further value."
Enquiries:
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| Salamander Energy | 020 7960 1580 |
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| James Menzies, Chief Executive Officer | |
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| Geoff Callow, Head of Corporate Affairs | |
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| | |
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| Pelham PR | 020 7337 1500 |
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| Mark Antelme | |
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| Evgeniy Chuikov | |
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| Henry Lerwill | |
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About Salamander
Salamander is an Asia focussed, independent, FTSE 250, upstream oil and gas
exploration and production company. Salamander has a balanced portfolio of
production, development and exploration assets with interests located in
Indonesia, Thailand, Vietnam, Lao PDR and the Philippines.
This information is provided by RNS
The company news service from the London Stock Exchange
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