Salamander Disappointed over Far East Well

Salamander Energy plc provided an operational update on testing operations at the Far East prospect in its operated B8/38 license, Gulf of Thailand.

A barefoot DST was conducted over a zone of potential oil pay in the Ratburi carbonates. The test results are conclusive, analysis of produced fluids point to formation water being present in the tested section.

The Far East-1 well will now be plugged and abandoned as a dry hole and the rig is being prepared for release. The Bualuang North West Terrace exploration well will now be drilled later in the year as part of the wider exploration program across both the B8/38 and G4/50 license areas.

"Whilst this result is disappointing in isolation, we remain extremely excited by the exploration potential in Greater Bualuang area. We now have the new 3D data in house from the G4/50 license and the early indications have surpassed our initial expectations on entering the license. We have started the tendering process to bring a rig to the area in 4Q 2012 to embark on an extensive exploration program principally across the G4/50 license," Chief Executive of Salamander James Menzies commented.

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