Oil discovered at Salamander Energy's North Kutei Basin

Oil and gas exploration and production company Salamander Energy has discovered oil at the first well in its multi-well programme in the North Kutei Basin.

Oil and gas exploration and production company Salamander Energy has discovered oil at the first well in its multi-well programme in the North Kutei Basin.

The well, known technically as the South Kecapi-1 DIR/ST exploration well, discovered a combined 40 metres of net oil and gas pay in high quality stacked Pliocene channel sandstones, the group reported.

The group further reported that a drill stem test had been conducted within one of the well's primary targets- a kind of sandstone- which flowed light oil at a rate of approximately 6,000 barrels of oil per day (bopd).

It reported that the well is being plugged and abandoned as an oil and gas discovery.

James Menzies, Chief Executive of Salamander, commented:"Our first well in the basin, the Angklung discovery, opened the play, while SK-1 (South Kecapi-1 DIR/ST), our second well, has validated the geological model, discovered hydrocarbon-bearing, high-quality channel sandstone sequences and delivered an excellent DST result, flowing 6,000 bopd on test.

"We are very encouraged by these results and are now moving on to drill one of the largest structures in the basin at the North Kendang location before bringing the rig back to drill the Bedug high, up-dip of the South Kecapi oil discovery."

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
House prices: from boom to even bigger boom
House prices

House prices: from boom to even bigger boom

UK house prices have risen to new to record highs, says Nicole Garcia Merida. Demand continues to outpace supply, but continued low interest rates, th…
9 Apr 2021
Nuclear power might never be popular – but now looks a good time to invest
Commodities

Nuclear power might never be popular – but now looks a good time to invest

Nuclear power gets a very bad press, but it is the ultimate renewable energy source. Interest in it is perking up again, says John Stepek. Which means…
9 Apr 2021