Salamander Energy issues disappointing well update

Salamander Energy on Thursday issued a disappointing update on its Bedug-1 exploration well in the Bontang production sharing contract.

Salamander Energy on Thursday issued a disappointing update on its Bedug-1 exploration well in the Bontang production sharing contract.

Although the well was found to be a gas discovery, exploration was terminated as a result of high pressures.

This also prevented the drilling of a side-track down-dip to further evaluate the oil bearing BT45 interval.

James Menzies, Chief Executive of Salamander, said: "Finding over 10 metres of gas pay on the crest and 11 metres of oil pay on the flank of the Bedug structure is very encouraging.

"Though it is frustrating that the unexpectedly high pressures have prevented us from fully evaluating the Bedug and North Kendang prospects, each of the three wells has provided evidence of the all elements of the petroleum system, and we are now evaluating results while determining the next steps in the programme."

The company has now completed the current phase of Salamander's multi-well programme in the North Kutei basin, and work is on-going to evaluate the commercial potential of the discoveries made.

The news was announced as the group held its annual general meeting, at which it confirmed that group production is ahead of budget at around 18,000 barrels of oil per day, driven by developments in the Bualuang field.

The share price plunged 16.59% to 171p by 15:07 Thursday.

NR

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
The FTSE 100 is set for a makeover with an influx of new tech stocks
UK stockmarkets

The FTSE 100 is set for a makeover with an influx of new tech stocks

The FTSE 100 – the dullest index in the world – is about to reinvent itself as a host of new firms list on the market. The change is long overdue, say…
24 Jan 2021
Think Tesla is a bubble? This might be the best way to bet on it bursting
Oil

Think Tesla is a bubble? This might be the best way to bet on it bursting

The huge rise in Tesla’s share price means that, by market value, it’s now the sixth-largest company in the US and and the world’s biggest car-maker. …
25 Jan 2021