Salamander Energy suspends well as a 'potential gas discovery'

Salamander Energy has suspended the North Kendang-1 exploration well (NK-1) in its operated South East Sangatta production sharing contract (PSC) as a potential gas discovery.

Salamander Energy has suspended the North Kendang-1 exploration well (NK-1) in its operated South East Sangatta production sharing contract (PSC) as a potential gas discovery.

Initial testing on the well indicates a wet gas, while pressure data indicate a 'potentially significant' column height.

Salamander is reviewing the option to return to NK-1 as part of the current drilling campaign, in order to drill ahead and evaluate a particular section.

It was this section where the company encountered high pressure gas, as a result of which it experienced operational challenges ultimately leading to the well's suspension before evaluating the reservoir section.

James Menzies, Chief Executive of Salamander, said: "Finding wet gas at North Kendang is highly encouraging for continued exploration in the North Kutei basin, though further drilling will be required to determine reservoir quality and a range of hydrocarbon volumes.

"As the well results are integrated into the geological model and technical evaluation continues, we will drill the Bedug prospect with a view to returning to North Kendang thereafter."

The rig is now being mobilised to the Bontang PSC to drill the Bedug-1 exploration well, the third well in Salamander's multi-well programme in the North Kutei basin.

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