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Salamander completes SK-1 exploration well as a discovery

HOUSTON -- Salamander Energy said Monday that the South Kecapi-1 DIR/ST (SK-1) exploration well in the Bontang Production Sharing Contract has been completed as an oil and gas discovery. South Kecapi is the first well in Salamander' s multi-well program in the North Kutei basin.

SK-1 discovered a combined 131 ft of net oil and gas pay in high quality stacked Pliocene channel sandstones. A drill stem test was conducted within one of the well’s primary targets; a well-developed, Pliocene-age channel sandstone, which flowed light oil at a rate of 6,000 bopd and 8 MMcfd of gas.

The well is being plugged and abandoned as an oil and gas discovery.

SK-1 was drilled using the Ocean General semisub, reaching a total depth of 6,601 ft. Higher pressures than anticipated and numerous gas shows were encountered throughout the early Pliocene section which is believed to be indicative of a hydrocarbon-charging system that is extremely active.

The company noted in its disclosure that it has elected not to undertake the previously planned down-dip side-track of the well.

"Attention [now] turns to the up-dip potential in the Bedug structure," Salamander said in a statement.

"While work continues on integrating the new well data into the assessment of potential in the Bontang PSC, [Ocean General] will now move directly to the South East Sangatta PSC to drill the North Kendang-1 exploration well," Salamander added.




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