Hot Features
Premium
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
FTSE 250 constituent firm, Salamander Energy plc (LSE:SMDR), opened on a high in early morning trading after the South East Asia-focussed oil and gas exploration and production company said it has discovered both oil and gas in one of its acreages in Indonesia.
In a statement, Salamander said its South Kecapi well located in East Kalimantan, Indonesia struck a combined 40 metres of net oil and gas pay after reaching its four targets.
Eleven metres of net oil pay were found in the upper target, BT45, which produced 6,000 barrels of light, sweet, 33.4 degrees API of oil per day with no water following a controlled drill stem test within a five-metre interval.
Secondary targets, BT18 and BT25, produced a total 29 metres of net gas pay, but the company said the resource discovered does not necessarily represent commercial volume and that more work is needed to continue to define the resource potential. Salamander, nonetheless, said wireline log analysis and gas samples indicated excellent quality reservoir characteristics, with porosities exceeding 30%.
Encouraged
At 11:00 AM GMT, shares of Salamander rose 13.9% to 211.90 pence, following the second successful discovery in the northern section of the Kutei Basin, a major hydrocarbon province with trillion cubic feet of gas and billion barrels of oil in reserves.
Salamander holds 100% interest in the Bontang PSC, where the first oil and gas discovery, the Angklung well, in 2010 was also made that proved a new hydrocarbon play in the northern part of the Kutei Basin once believed to be lacking of sandstone reservoir found in the southern section.
“We are very encouraged by these results,” stated Salamander Chief Executive, James Menzies, who further said the company will move next to drill the North Kendang-1 exploration well in the adjacent South East Sangatta PSC, where the company controls 75% stake.
The SK-1 well will be plugged and abandoned, meanwhile, to give way to the Kendang-1 well, after which, Salamander intends to drill the up-dip potential of the recent discovery for a targeted resource of between 13 million to 133 million barrels of oil in the Bontang PSC.
In total, the firm’s multi-well programme in the north Kutei Basin hopes to discover some 1.4 trillion cubic feet of gas and 189 million barrels of oil.
