Salamander Energy completes North Kendang-2 exploration well drilling operations

8/19/2014

Salamander Energy completes North Kendang-2 exploration well drilling operations

LONDON -- Salamander Energy Plc (Salamander) reported that drilling operations on the North Kendang-2 exploration well (NK-2) in its operated South East Sangatta PSC have now been concluded.

The well reached a total depth of 2,569 m true vertical depth sub-sea and encountered two hydrocarbon bearing intervals, one of which was the primary objective zone of high pressure encountered in the North Kendang-1 (NK-1) well. This was successfully penetrated in NK-2 and comprised a 2.5 m gas condensate bearing sand. In addition, a 10.5 m gas bearing sand with oil shows was encountered at a shallower depth. This sand is at the same stratigraphic interval that flowed 6,000 bopd on test in the South Kecapi-1 DIR/ST well in the Bontang PSC.

The volume of hydrocarbons encountered is considered to be sub-commercial and the NK-2 well has been plugged and abandoned. Costs related to the NK-1 well control incident, and to drilling the NK-2 well to this same depth, are covered under the Company’s insurance policies. This well concluded Salamander’s drilling programme in the North Kutei and the Ocean General rig has now been released.

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