Salamander Concludes North Kendang-2 Drilling Operations

Salamander Energy plc announces that drilling operations on the North Kendang-2 exploration well (“NK-2”) in its operated South East Sangatta PSC have now been concluded.

The well reached a total depth of 2,569 meters true vertical depth subsea and encountered two hydrocarbon bearing intervals, one of which was the primary objective zone of high pressure encountered in the NorthKendang-1 (“NK-1”) well.

This was successfully penetrated in NK-2 and comprised a 2.5m gas condensate bearing sand. In addition, a 10.5m gas bearing sand with oil shows was encountered at a shallower depth.

This sand is at the same stratigraphic interval that flowed 6,000 bopd on test in the South Kecapi-1 DIR/ST well in the Bontang PSC.

The volume of hydrocarbons encountered is considered to be sub-commercial and the NK-2 well has been plugged and abandoned.

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.This well concluded Salamander’s drilling programme in the North Kutei and the Ocean General rig has now been released.

Press Release, August 18, 2014

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