Exploration drilling of the North Kutei acreage is estimated to begin in the fourth quarter of 2012, with the rig to be used for exploration drilling in the Salamander-operated Bontang and SE Sangatta production sharing contracts.

Salamander has committed to drill the South Kecapi, South Kecapi side-track, North Kendang and Bedug prospects and has an additional four option well slots under the contract to allow follow-up drilling in the event of success, it said.