Salamander Energy announces spud of South Kecapi-1 DIR/DIRA exploration wells

12/10/2012

Salamander Energy announces spud of South Kecapi-1 DIR/DIRA exploration wells

UNITED STATES -- Salamander announces the commencement 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.

The South Kecapi-1 DIR well will be drilled to a depth of approximately 2,450 m 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 m. 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.

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