Salamander Spuds NK-2 Exploration Well (Indonesia)

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Salamander Energy has announced the spud of the North Kendang-2 exploration well (“NK-2”), a re-drill of the North Kendang-1 (“NK-1”) well in the South East Sangatta PSC.

Salamander has a 75% operated interest in the South East Sangatta PSC.

NK-2 will be drilled to a depth of approximately 2,878 m total vertical depth subsea (“TVDSS”) in order to evaluate the Upper Miocene section. The Ocean General semi-submersible rig, which has now been fitted with managed pressure drilling equipment to enable it to manage the anticipated pressure regime, will be used to drill the NK-2 well.

NK-1 was drilled to 2,535 m TVDSS when it encountered a high pressure wet gas kick in the Upper Miocene, which led to it being plugged and abandoned on 13th April 2013. Costs related to the NK-1 well control incident, and to drilling the NK-2 well to this same depth, are covered under the Company’s insurance policies.

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