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Salamander Energy said Monday that the South Kecapi-1 DIR/ST (SK-1) exploration well in the Bontang Production Sharing Contract (PSC) has been completed as an oil and gas discovery. South Kecapi is the first well in Salamander's multi-well program in the North Kutei basin.
SK-1 discovered a combined 131 feet of net oil and gas pay in high quality stacked Pliocene channel sandstones. A drill stem test was conducted within one of the well’s primary targets; a well-developed, Pliocene-age channel sandstone, which flowed light oil at a rate of 6,000 barrels of oil per day and eight million standard cubic feet per day of gas.
The well is being plugged and abandoned as an oil and gas discovery.
SK-1 was drilled using the Ocean General semisub, reaching a total depth of 6,601 feet. Higher pressures than anticipated and numerous gas shows were encountered throughout the early Pliocene section which is believed to be indicative of a hydrocarbon-charging system that is extremely active.
The company noted in its disclosure that it has elected not to undertake the previously planned down-dip side-track of the well.
"Attention [now] turns to the up-dip potential in the Bedug structure," Salamander said in a statement.
"While work continues on integrating the new well data into the assessment of potential in the Bontang PSC, [Ocean General] will now move directly to the South East Sangatta PSC to drill the North Kendang-1 exploration well," Salamander added.
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