Salamander Energy plc provides an operational update on current activity across its three core areas.
Greater Bualuang, Offshore Thailand (Salamander 100%, operator)
Bualuang Bravo Platform
The Group is pleased to report that construction of the Bualuang Bravo Platform is due to complete on schedule and on budget by the end of August 2012. In addition, the Environmental Impact Assessment (“EIA”) for the Bravo platform was approved on 17th August. With EIA approval granted and construction completed, the Group is now in a position to commit to a heavy lift vessel (“HLV”) for the installation and commissioning of the Bravo Platform and has contracted Thai-Nippon Steel’s K1 HLV for the operation.
The K1 HLV will begin load out and installation of the Bravo Platform by mid-October. The platform will then be ready for development drilling from end-October, approximately six weeks later than originally envisaged. As a result the Group is revising its 2012 average daily production forecast to 10,500-11,500 boepd from 12,000-13,000 boepd.
Atwood Mako Jack Up Rig
Construction of the Atwood Mako rig has been completed on schedule. The rig is due for load out before the end of August and is expected to be on location in the first week of September. The initial programme will see the Atwood Mako complete a short development drilling programme from the Bualuang Alpha Platform in September. It will then, during October, drill two exploration wells in the Group’s Greater Bualuang acreage, including the Bualuang Northwest Terrace prospect. The rig will then move to the newly installed Bravo platform for an extended programme of development drilling on the Bualuang field and the East Terrace.
Greater Kerendan, onshore Kalimantan Indonesia (Salamander 80%, operator)
The DrillCo-1 land rig has finished rigging up and the first development well, Kerendan-4, on the Kerendan gas field was spudded on August 22nd. Four development wells are planned on the Kerendan field and on successful completion of the development drilling the Group will seek to commercialise 161.9 Bcf of contingent resource certified on the Kerendan field, in addition to the 122.6 Bcf of reserves already commercialised in the Gas Sales Agreement.
Development drilling is expected to continue through the rest of the year and the rig will then move to drill the West Kerendan prospect comprising the Oligocene-age Berai Carbonate and underlying Eocene Tanjung (“Sungai Lahei”) clastic targets at the start of 2013.
North Kutei, offshore East Kalimantan, Indonesia
Modifications and equipment installation on the Ocean General semi-submersible rig are complete and the rig is now under charter by the consortium of four companies, put together under a rig sharing agreement in order to reduce costs. The rig will mobilize by the end of August for use by the first member of the consortium. Salamander expects to spud the South Kecapi prospect, the first of at least four exploration wells in its North Kutei exploration programme, in 4Q 2012.
Chief Executive, James Menzies, commented:
“We are pleased to report that the construction of the Bualuang Bravo Platform has been completed on schedule and within budget. With the important milestone of the necessary environmental approval now received, we are able to schedule the installation of the Platform and firm up our work programme with the Atwood Mako rig, which we confirm will be delivered on schedule in order to begin the next phase of our Thai drilling campaign.
“Elsewhere operations are progressing to plan. The remainder of 2012 is shaping up to be a lively operational period for the Company.”
Salamander Energy plc
James Menzies, Chief Executive Officer
Geoff Callow, Head of Corporate Affairs
020 7432 2680
Brunswick Group LLP
020 7404 5959