South Sebuku exploration well proves gas

Salamander Energy has hit pay with the South Sebuku-1 (SS-1) exploration well in the Bengara I PSC in Indonesia.

Offshore staff

LONDON -- Salamander Energy has hit pay with the South Sebuku-1 (SS-1) exploration well in the Bengara I PSC in Indonesia. The well encountered multiple gas bearing sandstones in the Tabul and Meliat formations, the company says. Salamander conducted two drill stem tests of the gas-bearing zones, which flowed at an aggregate rate of 10.9 MMc/fd.

The discovery is 15 km (9.3 mi) from the South Sembakung gas/condensate field in the neighboring Simenggaris PSC, in which Salamander has a 21.6% interest. The partners are evaluating the potential for tying in South Sebuku to the South Sembakung gas/condensate field, which received formal development approval last year.

The Bengara I partners hope to drill an appraisal well on the discovery in 2010.

“We are pleased to have made a discovery which we expect to lead to our second development in the Tarakan basin,” says James Menzies, chief executive of Salamander. “With gas sales arrangements in place, we can proceed with appraisal and development work with a view to bringing new source production on-stream in 2011.”

08/13/2009

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