Salamander Spuds South Sembakung-3 Appraisal Well



Salamander Energy has spudded an appraisal well on the South Sembakung gas-condensate discovery in the Simenggaris block, onshore Tarakan basin, East Kalimantan, Indonesia. Salamander announced the acquisition of a 21% interest in this block on June 27, 2007.

The appraisal well South Sembakung-3 ("SS-3") will be drilled to a depth of approximately 9,000 feet sub-sea. The primary objective is the Middle Miocene Meliat formation, from which the discovery well flow-tested 12.7 million standard cubic feet of gas and 115 barrels of condensate per day. SS-3 is located approximately 1.5 km south west of the discovery well.

The well is being drilled by the Apexindo-2 rig and is estimated to cost $6.2 million on a dry hole basis.

Pertamina - Medco Simenggaris Pty Ltd., operator of the Simenggaris block, carries a resource estimate of 125 billion cubic feet of gas and 3 million barrels of condensate for the South Sembakung structure, which is located approximately 7 km south west of the producing Sembakung oil and gas field.

James Menzies, Chief Executive of Salamander, commented:

"The drilling of the SS-3 well forms part of a drilling program that will see Salamander appraise five fields and discoveries in the remainder of 2007 ahead of six to eight high impact wells in our 2008 exploration program."

RELATED COMPANIES