Salamander Touts Success at South Sebuku Appraisal

Salamander announced the results of the recent appraisal drilling and testing program on the South Sebuku-2 ("SS-2") well, Bengara-1 PSC, East Kalimantan. The Group has a 42% non-operated interest in the Bengara-1 PSC.

The SS-2 well was drilled to a total depth of 1,386 MDSS and encountered over 15 meters of net gas-bearing sandstones in the Tabul formation. Drill stem tests ("DSTs") 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 South Sebuku-1 discovery well demonstrate the commerciality of the South Sebuku accumulation. The South Sebuku-2 well has been suspended as a potential future producer.

The operator prepared a Plan of Development prior to drilling of the SS-2 well which is being refined to incorporate the results of this latest well before submission to the Indonesian regulator for approval.

South Sebuku is located 15 kilometers north of the South Sembakung development on the Simenggaris PSC. Development of this field is on-going and it is expected to be ready to deliver gas from 2H 2012.


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