Last checked at 15 Nov 2010 07:00
For immediate release 15 November 2010
Sound Oil plc
Indonesia Activity update
Sound Oil is pleased to report that a recent change in the Bangkanai PSC and ownership has brought forward drilling of two exploration wells and implementation of the Kerendan gas field Plan of Development (POD).
Salamander Energy plc has announced that it has acquired the entire share capital of Elnusa Bangkanai Energy Limited (EBE) which now holds a 69% working interest and operatorship of the Bangkanai PSC. Sound Oil's 5% interest in the Bangkanai PSC, held through its wholly owned subsidiary Mitra Energia Bangkanai Limited, continues to be carried for all expenditure until first gas from the Kerendan field and for two exploration wells.
The new operator has announced plans for early drilling commencing in early 2011. Salamander also expects to progress the development of the Kerendan field leading to first production in 2014. Negotiations for gas sales to PLN, the Indonesian State power company, are at an advanced stage.
Gerry Orbell, Sound Oil's Chairman and Chief Executive comments:
"This is a very positive step for Sound which has a 5% carried interest in the Bangkanai PSC. Salamander are an experienced operator in Indonesia and they have stated that they will be drilling two exploration wells on behalf of the partners in our PSC in the first part of 2011. Additionally, they expect to bring on stream the Kerendan Gas Field in 2014 which will monetise our interests there.
Elsewhere in Indonesia, Sound will be participating in three wells in the Citarum PSC, Java (Sound 20%) in the first half of 2011. With involvement in 5 exploration wells before mid 2011, Sound is in for a very active New Year."
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Sound Oil plc Tel: 07903 861 145
Gerry Orbell, Chairman
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Buchanan Communications
Tim Thompson/Ben Romney/Chris McMahon Tel: 020 7466 5000