Salamander Makes Headway at Tutung Discovery

Salamander Energy plc has announced the results of the recent appraisal drilling and testing program carried out using the Ensco-1 barge-mounted rig on the Tutung discovery, Bontang PSC, East Kalimantan, Indonesia.

The Tutung discovery has been further appraised with the drilling of the Tutung Alpha-2 ("TA-2") well and a Drill Stem Testing ("DST") program in Tutung Alpha-1 ("TA-1") across two zones in the target Middle Miocene Pulubalang formation sandstones.

DST-1 was conducted between 3,110 meters and 3,113 meters subsea in a low permeability zone which flowed 1 MMscfd and 67 barrels of condensate per day. DST-2 was conducted between 2,993 meters and 3,002 meters subsea and flowed at approximately 14 MMscfd and 475 barrels of condensate per day. The flow rate was constrained by the testing equipment.

The TA-2 well was a 1,800 meter step out to the northeast of the Tutung Alpha-1 location, designed to test the limit of the closure to the northeast of the structure. The well was drilled to a total vertical depth of 3,194 meters sub-sea and encountered the top of the target formation some 90 meters low to prognosis. The well TD'ed within the target section with gas shows in an overpressure zone seen in both the discovery well and the TA-1 appraisal well.

A side-track ("TA-2ST") was drilled to a crestal location approximately 1,200 meters west of the TA-2 bottom hole location. The TA-2ST well was drilled to a vertical depth of 3,164 meters subsea, encountering the top of the target sandstone sequence 15 meters low to prognosis.

All wells have been suspended and post well evaluation is ongoing, including the integration of the new data with the transition zone seismic. The results of this work, together with the data from the original discovery well, Tutung-1 which tested at a rate of 10 MMscfd and 613 barrels of condensate per day, will be used to determine the resource potential and forward program in developing the Tutung discovery.

James Menzies, Chief Executive of Salamander, commented, "We are pleased to see DST results confirm the deliverability of the stacked Miocene sandstone reservoirs at Tutung, and with the new data we have collected, we will now assess the options for developing the feature. In the meantime we look forward to the offshore exploration drilling in the Bontang PSC that commences later in the year."

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