May 22, 2013 - Salamander Energy was forced to call a halt to drilling operations in its SE Sangatta PSC upon encountering unexpectedly high pressures in the North Kendang-1 well. A high-pressure wet-gas kick was taken as the well entered the first Upper Miocene sand. An extensive sub-surface and operational review has been conducted and it was determined that the well cannot be safely drilled without the use of Managed Pressure Drilling (MPD) equipment. MPD equipment is not readily available in Indonesia so the time needed to import the equipment precludes the use of the rig currently under contract. The limited results from the well are encouraging and Salamander intends to continue the North Kendang drilling program as soon as possible.