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Salamander Energy Spuds G4/50-4 Exploration Well off Thailand

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Salamander Energy plc reported the start of its multi-well exploration programme in Block G4/50, Gulf of Thailand. Salamander has a 100 percent operated interest in Block G4/50 which surrounds the B8/38 Production Licence (that contains the Bualuang oil field).

The Group plans to drill six exploration wells in G4/50 during 2013 with further exploration drilling to follow in 2014. Block G4/50 covers over 2,239 square miles and contains five sub-basins, four of which have a proven oil source. Over 60 prospects have been mapped on 3D seismic containing mean prospective recoverable resources in the 20 million barrels of oil (Mmbo) - 150 Mmbo range.

The first well in the programme, G4/50-4, was spud June 27 and is being drilled on the Rayong prospect. Rayong is located in the north east of the block in the Central Kra sub-basin. G4/50-4 is targeting oil in Miocene sandstones and Permian Ratburi carbonates that are estimated to contain between 20 MMbo and 50 MMbo of prospective recoverable resource with the key risk being identified as access to hydrocarbon charge.

The G4/50-4 well will be drilled to approximately 6,562 feet total vertical depth sub-sea using the jackup Atwood Mako (400' ILC) and is expected to take around 21 days to reach target depth. On completion of the G4/50-4 well the rig will move to drill the Surin prospect in the Central Western sub-basin.

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