Bengara

The Bengara-1 PSC is located onshore in the Tarakan Basin, East Kalimantan. Oil and gas production is well established in the Tarakan basin, with between 400 - 500 million barrels of oil equivalent being found in the shelf area.

Recent significant oil discoveries have been made in the deepwater foldbelt outboard of the Bangkadulis half-graben, east of the Bengara block location. Other nearby oil and gas production includes the Tarakan and Bunyu Island fields.

The Bengara I partners drilled and completed the South Sebuku-1 exploration well in August 2009, which has been suspended as a potential future producer.

The SS-1 well encountered multiple gas bearing sandstones in the Tabul and Meliat formations. Drill stem tests (“DST’s”) were conducted across two of the gas-bearing zones, which flowed at an aggregate rate of 10.9 MMscfd.

The South Sebuku-2 appraisal well was drilled in 4Q 2011 and encountered over 15 metres of net gas bearing sandstones. DST's were conducted across three of the gas bearing zones and flowed at an aggregate rate of 10.9 MMscfd. These results, together with the DST data from the SS-1 well demonstrate the commerciality of South Sebuku. The operator is refining a Plan of Development ahead of submission to the Indonesian regulator for approval.

The discovery is located approximately 15 km from the South Sembakung gas-condensate field in the neighbouring Simenggaris PSC, in which Salamander has a 21.5% 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.