Salamander Starts Drilling Campaign in Nort Kutei Basin (Indonesia)

Salamander Starts Drilling Campaign in Indonesian Waters

Salamander today announced the start of its exploration drilling programme in the North Kutei basin, East Kalimantan, Indonesia with the spudding of the South Kecapi-1 DIR and DIRA exploration wells in the Bontang PSC.

Salamander has a 100% operated interest in the Bontang PSC.

The South Kecapi-1 DIR well will be drilled to a depth of approximately 2,450 metres total vertical depth sub sea (‘TVDSS’). On completion it will then be sidetracked approximately 1.5 km to the west with the South Kecapi-1 DIRA being drilled to a depth of approximately 2,100 metres TVDSS. The South Kecapi-1 DIR/DIRA wells are targeting gas and oil pay in a series of stacked Pliocene – Upper Miocene sandstone reservoirs. The combined mean pre-drill estimate of prospective recoverable resources is approximately 275 Bcf and 20 MMbo.

The wells will be drilled by the Ocean General semi-submersible rig in a water depth of 388 metres. On completion of the South Kecapi-1 DIR/DIRA wells the rig will move to the South East Sangatta PSC to test the North Kendang prospect.

Press Release, December 10, 2012

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