Salamander Cinches New Interest in Kutei Basin

Salamander Energy plc has agreed to terms with PT Eksindo Petroleum Bontang for the transfer of a 20% equity interest in the Bontang PSC, Kutei Basin, East Kalimantan.

Following the transaction, Salamander will have a 90% operated interest in the Bontang PSC. Completion is subject to the required government and partner consents.

"The Kutei basin is a core area for Salamander and following our entry into the neighbouring Kutai PSC announced last week, this additional equity in the Bontang PSC provides us with an expanded position in a highly prolific basin," said James Menzies, Salamander's Chief Executive. "It is an area we know well and we look forward to the commencement of our exploration drilling program in the Bontang PSC in Q4 2008."