Salamander acquires stake in E. Kalimantan exploration block

LSE-listed oil, gas firm Salamander Energy plc announced Monday that it has agreed to acquire a 25% interest in the Bengara-1 PSC from PT Medco E&P Bengara (Medco).

The company did not disclose the acquisition price.

The Bengara 1 PSC is located in the Tarakan Basin, East Kalimantan, immediately north-west of the Simenggaris JOB-PSC in which Salamander has a 21% interest.

The company said the acquisition increased presence in one of Salamander?s core strategic areas, the proven but under-explored Tarakan Basin, East Kalimantan

The company also said the Sebuku prospect would be drilled in the third quarter of 2008, located 8 km west and up-dip of the producing Sembakung oil & gas field in Simenggaris PSC.

Operator estimates prospective resources of 29 million barrels of oil and 14 billion cubic feet of gas for the Sebuku prospect, the company said, with follow up potential of a further six leads and prospects on the Bengara-1 block

Prior to the acquisition, Medco, the block?s operator holds 55 percent interest with Thai firm PTTEP holding 40 percent. The remaining 5 percent is held by local firm Satria Energindo. (denny)