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Drilling near at Indonesia Barito gas-power project

Salamander Energy PLC plans to spud an exploratory well in late November 2011 on a large prospect adjacent to undeveloped Kerendan gas-condensate field in the Barito basin of inland East Kalimantan, Indonesia.

Sound Oil plc, which has a 5% carried interest in a two-well exploration program and the Kerendan development, said the Sungai Lahei-1 deep test “will be turned into the first production well in the shallower overlying Kerendan gas field.”

Three more wells are to be drilled at Kerendan in 2012, and gas production to a power plant 3 km from the field is to start in 2013-14 under a 20-year contract. A $90 million field development plan includes a gas processing plant.

K-1, a 1982 Unocal discovery, gauged 15 MMscfd and 300 b/d of condensate from Oligocene Berai reefal carbonates at 9,000 ft on long-term test. Salamander, with 69% interest, sees a prospective resource of more than 1.5 tcf in six prospects on the Bangkanai PSC.

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