Salamander to farm-out block to fund appraisal drilling
Friday, November 15 2013 - 12:16 AM WIB
UK independent oil and gas firm Salamander Energy is planning to farm-out interest in Bontang PSC in North Kutei basin, offshore East Kalimantan to finance appraisal drilling program in the block in 2014.
?Technical review of the South Kecapi oil discovery nearing completion at which point a farm out process will be initiated to secure a partner ahead of appraisal drilling,? the company said in a report released on Thursday.
Salamander completed drilling South Kecapi-1 earlier this year and discovered a combined 40 meters of net oil and gas pay in high quality stacked Pliocene channel sandstones.
A drill stem test was conducted flowing light oil at a rate of 6,000 barrels of oil per day and 8 mmscfd of gas.Earlier in 2010, Salamander also made gas discovery through drilling of Angklung-1 well within the Bontang PSC, which flowed 24 mmscfd of dry gas
The company has 90 percent interest in Bontang PSC.
The company did not give detail about the percentage of interest it planned to farm out.
The company also said that it planned to re-drill North Kendang well in SE Sangatta PSC, also located in North Kutei basin and has identified rig that will be able to drill towards the end of first quarter of 2014.
Salamander suspended drilling of North Kendang -1well in April this year as potential oil and gas discovery after drilling encountering high pressure gas, which ultimately leading to its suspension pending evaluation of the reservoir section. The gas has been sampled and is being analyzed with initial results pointing to a wet gas, while pressure data indicates a potentially significant column height.The company filed insurance claim for the suspension and said that the claim will cover the vast majority of well costs.
Salamander has 75 percent interest in SE Sangatta PSC.
Editing by Reiner Simanjuntak