According to the agreement, Salamander will supply a total of 130 trillion Btu of gas from its gas field over a period of 20 years, with price at $4.79/MMBtu and 3% escalation per three years.
Salamander Energy will book a net 16.5 MMboe of proved reserves from the Kerendan field, comprising 84 Bcf and 1.25 million barrels of condensate.
Salamander will develop the Kerendan field by drilling at least three production wells, and procuring and constructing gas processing facilities and associated pipelines.
Gas deliveries are expected to be available by mid 2013.
