Indonesia

A unit of Salamander Energy PLC will purchase an Indonesian concern that contains undeveloped Kerendan gas-condensate field in the Barito basin in East Kalimantan, Indonesia.

Nov. 11, 2010

By OGJ editors
HOUSTON, Nov. 11 – A unit of Salamander Energy PLC will purchase an Indonesian concern that contains undeveloped Kerendan gas-condensate field in the Barito basin in East Kalimantan, Indonesia.

Salamander will buy Elnusa Bangkanai Energy Ltd. from PT Elnusa Tbk for $11.2 million. EBE is operator with 69% interest in the Bangkanai PSC including Kerendan field and nearby prospects. Salamander hopes to start production from Kerendan at 14-17 MMscfd in 2014.

Kerendan has an approved development plan and certified proved resources of 157 bcf and probable resources of 50 bcf. Exploration prospects identified in the PSC have a mean gross prospective resource in excess of 1.5 tcf.

Kerendan gas is in a Late Oligocene carbonate reef topped at 2,750 m and is less than 3% carbon dioxide. The field has three wells. Prospective deeper Eocene clastics are yet to be tested.

Two exploration prospects to be drilled in the first quarter of 2011 with combined net
mean resource potential of 340 bcf.