Salamander prepares insurance claim following well incident offshore Indonesia

Offshore staff

LONDON – Salamander Energy has started an insurance claim related to its drilling campaign offshore Indonesia.

The program in the North Kutei basin has so far led toone confirmed discovery and a suspended potential gas find at North Kendang-1. Operations continue on the Bedug-1 exploration well.

North Kendang-1 encountered problems with high pressures, with substantial rig time spent getting the well under control following a gas kick.

The estimated $20-million claim has been filed for the cost of well control and loss of contractor equipment with an application for an early interim payment. A further claim related to the cost of re-drilling the well will also be submitted.

Salamander does not expect final settlement before end-2013.

5/22/2013