Salamander announces spudding of E. Kalimantan appraisal well

UK independent oil, gas firm Salamander Energy plc announces Tuesday the spudding of the Tutung Alpha-2 (TA-2)appraisal well in the Bontang PSC, East Kalimantan.

The Tutung discovery is a gas-condensate accumulation on the northern flank of the prolific Kutei Basin. The TA-2 well is a follow up to the successful Tutung Alpha-1 (TA-1) well that was completed in February 2008.

The TA-2 well will appraise the Middle Miocene deltaic sandstones of the Pulubalang Formation and a testing programme is planned upon completion of drilling. TA-2 will be drilled using the Ensco-1 barge mounted rig and is programmed to reach a depth of approximately 3,200 metres sub-sea.

Salamander is operator of the Bontang PSC and holds a net 70% interest.

James Menzies, Chief Executive of Salamander, commented: "Following the encouraging results of the TA-1 well, we are aiming to demonstrate the commercial viability of the development of the Tutung discovery with the TA-2 well. Having acquired 3D seismic over the offshore area of the Bontang PSC last year, we have now mapped numerous prospects in the block. The area is looking highly prospective and we look forward to drilling the first of these exploration targets later in 2008." (alex)