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Salamander Gets Mixed Results from Drilling Operations in Thailand

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Salamander Energy plc, an independent upstream oil and gas exploration production company listed on the London Stock Exchange, provided an update Monday on drilling activities at its acreage onshore and offshore Thailand.

Sinphuhorm East-1ST (SPHE-1ST), L15/43

The onshore SPHE-1ST well has successfully tested gas from the Permian-aged Pha Nok Khao (PNK) reservoir at a surface constrained rate of over 50 million standard cubic feet per day (MMscf/d). The flow rate is commercial and is among the best production rates seen in the field.

The reservoir section of the well has been drilled underbalanced to an intermediate depth of 7,398.2 feet (2,255 meters) true vertical depth subsea (TVDSS) encountering the top of the PNK formation at 6,807.7 feet (2,075 meters) TVDSS. Shut-in pressures indicate that the drilled reservoir is in communication with the main Sinphuhorm gas field. Preparations are underway to drill ahead to determine the depth of the gas-water contact and complete deliverability testing of the remaining hydrocarbon potential within the PNK reservoir.

The well was the first drilled on the recently acquired 3D seismic data and was designed to appraise the field’s extent and reservoir deliverability. This result confirms the field extension from the production licenses (Salamander net 9.5 percent) into block L15/43 (Salamander 27.2 percent). As at Jan. 1, Salamander booked a net 16.3 million barrels of oil equivalent (MMboe) of 2P reserves and 11.3 MMboe of contingent resources (independently certified) associated with the field.

This is the first well to be drilled following the acquisition of 3D seismic over the Sinphuhorm field, which has proved to be a valuable tool in identifying the areas of productive reservoir and will be used to identify further upside elsewhere across the field area.

Ayutthaya Exploration Well, G4/50

The exploration well on the offshore Ayutthaya prospect in Block G4/50 in the Gulf of Thailand has been plugged and abandoned as a dry hole. The well was drilled in the central Western Basin to a total depth of 7,526.2 feet (2,294 meters) TVDSS. Excellent quality reservoirs were encountered at the target horizons, but no significant indications of oil or gas were observed during drilling or on wire-line logs.

Environmental Impact Assessment (EIA) Update

Salamander’s EIA application for exploration drilling locations in block G4/50 has still to be approved. The oil spill that occurred elsewhere in the Gulf of Thailand in July has understandably impacted the EIA approval process and the lessons learned from this incident will now need to be reflected in an updated Oil Spill Response Plan. We will resubmit the EIA application once this work has been completed.

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