LONDON (Yosefardi) – Salamander Energy Plc plans to return to North Kendang at North Kutei area, East Kalimantan, to further evaluate the potential of the structure.

Salamander experienced operational challenges in North Kutei are due to high pressures being encountered in the North Kendang and to a lesser extent, Bedug prospects.

“As a result, we have an on-going insurance claim for costs incurred in managing and controlling the well operations for which an interim payment of $7.9 million is expected imminently,” Salamander said today.

“Having taken a significant wet gas kick from a target interval at North Kendang, and with insurance cover funding a re-drill of the prospect, we plan to return to the location,” the company continued.

As for Bontang PSC, the work is on-going to determine the potential of the South Kecapi oil and gas discovery, which tested at 6,000 barrels of oil per day.