Salamander Energy plc, the Asia focussed independent oil and gas exploration and production company, announces that the Dambus‐1 exploration well in the Kutai PSC, offshore Indonesia, has been plugged and abandoned after seeing hydrocarbons in volumes thought to be sub‐commercial.

The Dambus‐1 exploration well, operated by Serica Energy was spudded on 4th September 2010 to investigate a stacked sequence of Miocene reservoir sands. Dambus‐1 was initially drilled as a deviated well to a TD of 3,225metres and encountered hydrocarbons in the gross interval 2,070‐2,110m with indications of further hydrocarbons below 2,760m. A sidetrack Dambus‐1ST was drilled to TD of 2,800m to allow an extensive programme of logging and sampling to be completed. Excellent quality gas‐bearing sands were logged in the interval 2,025‐2045m, together with oil shows, and the pressures were evaluated. Following assessment, the volumes encountered were deemed to be sub‐commercial and the well has been plugged and abandoned.

The Trident drilling rig will now move to drill the Marindan exploration well, at the southern end of the Kutai PSC. Salamander Energy has a 23.4% interest in the Kutai PSC.

James Menzies, Chief Executive, Salamander Energy, said:

“The Dambus results have no impact on the rest of the programme in this basin. The Trident1X rig will now drill the Marindan well in the south of the basin. In the meantime, our Angklung well in the north of the basin continues to drill on schedule.”

Enquiries:

Salamander Energy	020 7960 1580
James Menzies, Chief Executive
Nick Cooper, Chief Financial Officer
Geoff Callow, Head of Corporate Affairs
Brunswick Group LLP	020 7404 5959
Patrick Handley
Fiona Micallef-Eynaud

 

About Salamander

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 .