The appraisal drilling and testing program on the South Sebuku-2 (SS-2) well on the Bengara-1 Production Sharing Contract (PSC) in East Kalimantan was completed, according to Salamander Energy Plc, which has a 42% non-operated interest in the PSC.

The SS-2 well was drilled to a total depth of 1,386 m (4,574 ft) measured depth and encountered over 15 m (49.5 ft) of net gas-bearing sandstones in the Tabul formation. Drillstem tests (DSTs) were conducted across three of the gas-bearing zones and flowed at an aggregate rate of 10.9 million standard cubic feet per day.

These results, together with the DST data from the South Sebuku-1 discovery well demonstrated the commerciality of the South Sebuku accumulation. The South Sebuku-2 well has been suspended as a potential future producer.

The operator prepared a plan of development prior to drilling of the SS-2 well, which is being refined to incorporate the results of this latest well before submission to the Indonesian regulator for approval.

South Sebuku is located 15 km north of the South Sembakung development on the Simenggaris PSC. The development of this field is on-going and the field is expected to begin production in the second half 2012.