Salamander doubles stake in ONWJ, SES blocks

UK-incorporated privately held oil company Salamander Energy Limited increases its shares in Orchard Energy Holding Java & Sumatra B.V. to 100 percent after it signed deal to buy 50 percent shares in Orchard with Singapore Exchange-listed firm Interra Resources Limited.

Orchard owns a 5% interest in two oil and gas production sharing contracts in BP-operated Offshore Northwest Java PSC (ONWJ) and CNOOC-operated South East Sumatra PSC (SES), both are located in the western part of Java.

Salamander will give Interra US$20 million in cash and $1 million in shares for the stake in Orchard Energy Holding Java and Sumatra BV.

With the acquisition, Salamander will get additional 12.5 million barrels of oil equivalent in reserves and production of about 3,300 barrels of oil equivalent a day, the company said. (alex)