Salamander Energy plc, the Asia focussed independent oil and gas exploration and production company, provides an operational update on its activities in Indonesia and Thailand.
Angklung Discovery, Bontang PSC, East Kalimantan (100%, Operator)
Following the drilling and testing of the Angklung-1 discovery well, an initial volumetric assessment of resources in the greater Angklung area has been undertaken, using the Angklung-1 well data together with the extensive 3D seismic data across the Angklung structure and the Kecapi and Bedug prospects immediately adjacent to it. These prospects have been significantly de-risked by the Angklung results, and represent highly material, low risk targets.
- The Angklung structure is estimated to contain mean gas resources of 290 billion cubic feet (Bcf), with upside potential of 420 Bcf.
- The adjacent Kecapi stratigraphic prospect, located in the hanging wall of the Angklung fault, is estimated to contain mean prospective resources of 209 Bcf, with upside potential of 336 Bcf. The prospect has an associated chance of success of 54%.
- The Bedug structural prospect is estimated to contain mean prospective resources of 344 Bcf with upside potential of 496 Bcf. The prospect has an associated chance of success of 61%.
- The consolidation of discovered and prospective resource in the Angklung area provides a mean estimate of 750 Bcf, with upside potential of 1.23 Tcf.
These estimates reflect solely the gas resources at the Pliocene level, and exclude any prospective resources associated with the oil- and gas-bearing Upper Miocene sandstone play highlighted by the Angklung-1 well.
B8/38 Drilling Programme, Gulf of Thailand (100%, Operator)
The Ocean Sovereign jack-up rig is currently on tow to the B8/38 licence area in the Gulf of Thailand. It is expected to take around 15 days to reach location ahead of a programme of three exploration wells in the B8/38 licence and six development wells on the Bualuang field.
The first well to be drilled on the B8/38 licence will be the Bualuang East Terrace exploration well. This prospect is estimated to contain a mean 7 million barrels of oil (MMbo) with upside potential of 14 MMbo. The prospect has a 66% chance of success and is expected to spud later this month.
Dao Ruang Appraisal, L15/50, Western Khorat, Thailand (50%, Operator)
A Letter of Intent has been signed for the MB Century 26 rig. The rig is expected to be under contract later this month and the first of two back to back Dao Ruang appraisal wells is expected to spud in mid-January 2011. Dao Ruang is a 1993 Texaco gas discovery that has potential gross mean resources of 500 Bcf. The two appraisal wells are targeting the fracture network in the Permian carbonate reservoir as mapped on recently acquired high resolution 3D seismic.
South Sokang PSC, Natuna Sea, Indonesia (40%)
A partnership between Salamander and Lundin Petroleum AB ("Lundin Petroleum") has been awarded a new production sharing contract (PSC) in the most recent Indonesian Licensing Round. The South Sokang block is located in the Natuna Sea, offshore Indonesia. Salamander will hold a 40% interest and Lundin will hold a 60% interest and be the operator.
The South Sokang PSC covers an area of 4,994 km2. The block contains a previously unknown and as yet undrilled frontier Eocene-Oligocene basin. During the first 3 year exploration phase there are plans to shoot 2,400km 2D and 500 km2 of 3D seismic.
James Menzies , Chief Executive of Salamander, commented:
"We are pleased to be able to demonstrate progress across our business, with a new licence award in Indonesia; forthcoming drilling activity on our Thai acreage and the discovery of a significant gas resource in the Bontang PSC, Indonesia."
We will now be engaging in further analysis and appraisal of the Angklung area in order to highlight the material value of Salamander's position in the North Kutei basin. Meanwhile we are looking forward to testing the East Terrace oil prospect together with further development drilling and associated production growth from the Bualuang oil field in the Gulf of Thailand."
A presentation providing more detail on the Angklung area is available at:http://www.salamander-energy.com/investor-centre/results-and-presentations/2010.aspx
Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.
|Salamander Energy||020 7960 1580|
|James Menzies, Chief Executive Officer|
|Geoff Callow, Head of Corporate Affairs|
|Brunswick Group LLP||020 7404 5959|
Salamander is an Asia focussed, independent, FTSE 250, upstream oil and gas exploration and production company. Salamander has a balanced portfolio of production, development and exploration assets with interests located in Indonesia, Thailand, Vietnam and Lao PDR.