Salamander Updates on Drilling at West Kerendan-1 Well in Bangkanai PSC

Salamander Energy disclosed Wednesday that following a successful drill stem test (DST) in the top of the Upper Berai, the West Kerendan-1 exploration well in Bangkanai production sharing contract in central Kalimantan, Indonesia is being suspended as a potential future production well.

The final cased hole DST in the top of the Upper Berai zone flowed at a maximum rate of 32.1 MMcfgpd and 296 bcpd from a 652 foot (199 meter) interval between 8,431 feet (2,570 meters) and 9,084 feet (2,769 meters) true vertical depth sub-sea. The combined flow rate from the Upper Berai zone achieved from this and the earlier DST (announced March 11) exceeds 50 MMcfgpd and 477 bcpd making this by far the most productive well to date on the Kerendan trend.

The Drill Co. 1 rig will be released. Salamander Energy will commence discussions to incorporate the discovery into an enlarged Kerendan area development to supply potentially up to 70 MMcfgpd to the gas-fired power plant that is currently being constructed adjacent to the Kerendan field.

James Menzies, Chief Executive of Salamander, commented:  "A flow rate of over 30 MMcfgpd from the top of the Upper Berai is far in excess of our pre-drill expectations.  In combination with lower Upper Berai we have tested at over 50 MMcfgpd from the WK-1 well.  Such a flow rate provides enough deliverability to support our negotiations for a further GSA and removes the necessity to drill a further appraisal.”


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