Tutung Well Sprung: Salamander's Appraisal of Gas Discovery Begins

Indonesian Fields
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Salamander Energy announced the spudding of the Tutung Alpha-1 appraisal well in the Bontang PSC, East Kalimantan, Indonesia.

The well will appraise the Tutung gas discovery. The original discovery well tested 10 million standard cubic feet of gas per day and 613 barrels of condensate per day from Middle Miocene deltaic sandstones and is estimated to contain between 40 to 100 Bcf of recoverable reserves. Tutung-Alpha-1 well is located approximately 1.2 km north of the discovery well.

The well is being drilled using the ENSCO I barge mounted rig and is programmed to reach a depth of approximately 3,200 meters sub-sea. Salamander is operator of the Bontang PSC and holds a net 70% interest in the license.

James Menzies, Chief Executive of Salamander, commented, "I am pleased that we have spudded the Tutung Alpha-1 appraisal well. This is the first well in a highly active drilling program for Salamander in 2008 with further appraisal drilling and high impact exploration wells scheduled in Indonesia, Thailand, Laos and the Philippines."

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