At the Group's Annual General Meeting to be held later today, Charles Jamieson, Chairman of Salamander Energy, will make the following statement:
"The Group issued an Interim Management Statement on Monday that provided a detailed update on current activity.
To summarise, Group production is ahead of budget and is currently at around 18,000 bopd. This is principally being driven by the Bualuang field where, following the successful installation of the Bravo platform in November 2012, the development drilling programme is progressing well and the first well into the deeper, T2 reservoir is producing at c. 3,000 bopd, more than double pre-drill expectations. The Bualuang field is currently producing at over 15,000 bopd. With production ahead of budget we will be moving the Atwood Mako rig off the Bravo platform in June to start the much anticipated exploration drilling on the highly prospective G4/50 licence.
In Indonesia, with the results of the Bedug-1 exploration well announced today we have now finished the initial drilling programme in the North Kutei. All three wells drilled to date have resulted in the discovery of hydrocarbons in reservoir quality sandstones. This is a significant step forward in our understanding of the basin and provides us with encouragement as we evaluate the results and determine the next steps in the programme.
Development drilling on the Kerendan field has largely been completed with the four wells testing at a combined rate of 40 MMscfd, comfortably ahead of the volumes we are contracted to supply to PLN in the existing gas sales agreement. Gas pricing and volumes are the subject of on-going discussions between the buyer PLN, Salamander and the Indonesian regulatory body. The focus of operations is about to switch to exploration drilling with the West Kerendan and Sungai Lahei prospects expected to spud over the summer.
With a strong balance sheet, growing production base and active exploration programme the Board believes the Company to be well positioned to deliver future shareholder value."
020 7432 2680
James Menzies, Chief Executive Officer
Geoff Callow, Head of Corporate Affairs
Brunswick Group LLP
020 7404 5959