Salamander Primes Bit for Cat Ba Prospect

Salamander announced the completion of drilling operations on the Dao Ruang structure, Block L15/50, onshore Northeast Thailand.

The Dao Ruang-3 appraisal well ("DR-3") has been drilled to a total depth of 1,800 meters true vertical depth sub-sea in order to test the pre-Tertiary carbonate section on the northern flank of the Dao Ruang structure. The well intersected a number of zones of interest with associated gas shows and a full suite of wire-line logs have been acquired. Analysis of all available well data suggests that DR-3 would have limited potential as a producer from the current wellbore. Due to this, and wellbore stability reasons, a decision has been made not to flow test the well. The DR-3 well is currently in the process of being plugged and abandoned.

Meanwhile, in Vietnam, the Aquamarine Driller jack up rig that will be used to drill the Cat Ba-1X prospect in Block 101/100-04, Offshore Northern Vietnam, is due to imminently commence mobilization to the well site. The Cat Ba-1X well is expected to spud before the end of July 2011.

James Menzies, Chief Executive Officer of Salamander Energy, said, "Dao Ruang is clearly a very large, gas-bearing structure, though we have not been able to find effective reservoir. We will now use this recent well data, together with the new 3D seismic data acquired over the Sinphuhorm field, to further develop our understanding of the play and review our wider position in the Khorat basin.

Focus of the drilling program now moves to offshore Vietnam with Cat Ba, a 100 MMbbl oil prospect, expected to spud later this month."

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