2010-11-16-2010-11-12-2010-11-12

Bought lnusa Bangkanai Energy, which holds 69% WI and operatorship in a contact in the Barito Basin onshore East Kalimantan, Indonesia, gaining 157 Bcfe proved, 207 Bcfe 2P.

Salamander Energy Group Ltd., a subsidiary of Salamander Energy Plc, London, (London: SMDR) has acquired Elnusa Bangkanai Energy Ltd. (EBE) from Jakarta, Indonesia-based PT Elnusa Tbk for US$11.2 million.

EBE holds a 69% interest and operatorship of the Bangkanai production sharing contact in the Barito Basin onshore East Kalimantan, Indonesia. The Bangkanai contract contains Kerendan gas field.

The field has an approved plan of development, certified proven resources of 157 billion cubic feet of gas and proved and probable resources of 207 billion cubic feet. Production from the field is forecast to start up in 2014.

The discovery well for Kerendan Field, K-1, was put on long-term production test and stabilized at flow rate of over 15 million cubic feet of gas and 300 barrels of condensate per day.

Salamander chief executive James Menzies says, "This acquisition of an operated interest in the Bangkanai PSC complements our existing portfolio and offers potential synergies with our other gas appraisals and development projects in East Kalimantan. The Kerendan gas field development is a good fit, being of a scale that is operationally manageable yet material for the company."