Salamander Energy updates Indonesian operations
Thursday, September 27 2007 - 05:49 PM WIB
Increased production from the phase 2 gas development in the SES PSC (Salamander 5%) started in August 2007 and the ONWJ PSC (Salamander 5%) will also see an increase in the fourth quarter of 2007 when gas sales to Pupuk Kujang commence. This gas sales agreement includes an improved price over previous contracts with realisations in excess of $3.60 per MMscf.
In the first half of the year 3D seismic acquisition was also completed over the three oil discoveries made in 2005/6 in the Asri sub-basin of the SES PSC namely Manik, Delima and Taskia. Appraisal drilling on the Manik discovery is underway.
In the Bontang PSC (Salamander 70%, operator), Salamander acquired 170 km of transition zone seismic over the Tutung gas/condensate discovery. Following a re-mapping of the Tutung structure using newly acquired 2D transition zone data, the Tutung Alpha-1 appraisal well is scheduled to spud in the fourth quarter of 2007. The Ensco-1 rig has been secured for the drilling operation which will be conducted close to shore in a few metres of water. Meanwhile, in the offshore portion of the Bontang PSC the acquisition of a 450 sq km 3D seismic survey commenced in September. This is the first data acquisition in this part of the block since the early 1980s and commercial discoveries on trend to the South have highlighted the benefits of having modern, state of the art data sets on which to define the prospectivity of this part of the prolific Kutei Basin. Having secured the PGS Orient Explorer seismic vessel at a good rate in what is a very tight contracting market, Salamander will be well placed to mature drillable prospects for the 2008 exploration drilling campaign in the Bontang PSC.
Finally in Indonesia, Salamander completed the acquisition of a 21% working interest stake in the Simenggaris PSC-JOB in the Tarakan basin of East Kalimantan. This is an area long identified as a strategic target for the Group. It is a proven basin and the Simenggaris block has a high technical success rate with seven discoveries from the twenty wells drilled as part of the original licence. An appraisal drilling programme is currently underway on the South Sembakung gas/condensate discovery. There is further exploration potential with over twenty further prospects and leads identified on the block. (end of excerpt)