Tuesday, May 31, 2011
Salamander Energy plc
by SubseaIQ
Salamander has executed an agreement to farm-out a 20% interest in Block 101-100/04, Offshore Northern Vietnam to JX Nippon Oil & Gas Exploration Corporation ("JX-NOEX"). Block 101-100/04 is operated by Salamander and contains the Cat Ba oil prospect that will be tested with the CB-1X well in Q3 2011.
JX-NOEX will earn a 20% working interest in Block 101-100/04 from Salamander through funding a promoted cost of the CB-1X well.
The Cat Ba oil prospect has oil potential in both basement and in the overlying clastics, and has a mean prospective resource of c. 100 MMbo. It is an analogue to the neighboring Ham Rong oil field, declared commercial by Petronas in 2010. The prospect will be tested by the CB-1X exploration well, to be drilled in July 2011, using the Aquamarine Driller jack-up drilling unit.
Completion of the transaction is subject to host government approval.
Commenting on the transaction, James Menzies, CEO of Salamander said, "Bringing in a partner like JX-NOEX demonstrates the industry interest in this emerging oil play and highlights the attractions of the Cat Ba prospect. This transaction reduces Salamander's financial exposure to the drilling of the CB-1X well, while we remain highly leveraged to the upside in the event of success at Cat Ba."
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