Salamander raises interest in E. Kalimantan PSC

UK independent oil, gas firm Salamander Energy plc announced on Wednesday that it had reached deal with PT. Eksindo Petroleum Bontang to acquire the latter?s 20 percent interest in Bontang PSC, East Kalimantan.

Completion is subject to the required government and partner consents, it said.

After the closing of the acquisition Salamander would have 90 percent interest in the block.

"The Kutei basin is a core area for Salamander and following our entry into the neighbouring Kutai PSC announced last week, this additional equity in the Bontang PSC provides us with an expanded position in a highly prolific basin. It is an area we know well and we look forward to the commencement of our exploration drilling programme in the Bontang PSC in Q4 2008," CEO James Menzies said.

Salamander had spudded of the Tutung Alpha-2 (TA-2) appraisal well in the Bontang PSC. The Tutung discovery is a gas-condensate accumulation on the northern flank of the 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. (denny)