Salamander Energy is to up its stake in the Bangkanai production sharing contract (PSC) located one of the group's core focus areas - Central Kalimantan, Indonesia.
The oil and gas group has agreed to buy Elnusa Chariot International, which holds an 11% interest in the Bangkanai PSC, for $6m in cash, taking its total interest in the licence to 80%.
The PSC contains the Kerendan gas field development, where a gas sales agreement was signed in the first half of 2011 for the supply of 20bn British thermal units (btu) per day for 20 years.
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Salamander has booked around 16.5m barrels of oil equivalent of proved and probable reserves from the PSC so far.
"In addition to the Kerendan field development, the Bangkanai PSC has extensive exploration potential. The DrillCo-1 land rig is due to mobilise to the Kerendan field site next month ahead of both development drilling and exploration drilling on the West Kerendan and Sungai Lahei prospects," the statement said.
BC
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