Technical Problems Halt Drilling Ops in Gulf of Thailand

Salamander provided the following update on its Thai drilling operations in Block L15/50, onshore Northeast Thailand, and Block B8/38, Gulf of Thailand.

Dao Ruang-2 well, Block L15/50

The Dao Ruang-2 appraisal well has reached a total vertical depth of 1,915m sub-sea (TVDSS) and an extensive program of wire-line logging is underway. The well has penetrated a number of fracture zones associated with an increase in gas while drilling. The well also experienced a pressure kick at 1,840 m TVDSS caused by an influx of gas from a fracture zone.

With strong gas shows at the current TD, potential for further fractures associated with faulting below the current depth and given that the current depth is still within structural closure, the decision has been taken by the L15/50 partners to deepen the well by an additional 525 meters.

Drilling is expected to re-commence as soon as the current logging program has been completed. It is expected that the deepening of the well will take approximately 8 days, at which point the partnership will decide on the optimal testing program for the well.

Salamander has a 50% interest in, and is operator of, Block L15/50.

B8/38, Gulf of Thailand

Due to technical problems with the Ocean Sovereign jackup rig, the Group has temporarily suspended its B8/38 drilling program while repairs are carried out on the rig. Drilling is expected to have re-commenced by April 7, and there is no rig cost to the Group during this repair time.

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