Salamander reports Indonesian ops update

The following is an excerpt taken from UK oil, gas firm Salamander Energy Plc?s an Interim Management Statement relating to the period from 1 January 2009 to 15 May 2009, released on Monday.

Operation

Glagah Kambuna TAC (Salamander operator, 50% interest)
The Kambuna field development, offshore North Sumatra, Indonesia continues to progress. The gas sales agreement with Pertiwi was signed in May and the remaining gas sales agreement with PLN is expected to be signed in the coming weeks. The multi-phase pipeline from the field to the processing facilities onshore at Pangkalan Brandan has been completed. The early production system continues to be fitted out and assembled in Batam ahead of transportation to the Pangkalan Brandan site. Production is expected to start up around the mid-year.

Outlook
Salamander has focussed its 2009 capex budget on firstly delivering the Bualuang in Thailand and Kambuna development programs and resultant production and cash flow growth, and secondly on its 2009 exploration and appraisal campaign and preparations for an extensive 2010 drilling campaign. The Group is making strong progress on both of these objectives.

Average production for the month of April was 11,500 boepd, and as a result of the Bualuang and Kambuna development activity this is forecast to rise to an annual average of 15,000-17,000 boepd for the full year 2009.

Preparations for the Group?s 2009 E&A drilling are at an advanced stage. The South Sebuku-2 exploration well, East Kalimantan, Indonesia is expected to spud later this month. (end of edited excerpt)

Note: South Sebuku well is part of Bengara-1 PSC (Salamander 25% interest)