Phu Horm Partners Spud Another Development Well

Salamander Energy plc on Wednesday provided a drilling update on the Phu Horm field in northeast Thailand.

The partners in the Phu Horm field have commenced the drilling of a further development well, PH-10. The PH-10 well was spudded on May 28 with the objective of increasing the productive capacity of the field. The well will be drilled directionally from the PH-4 surface location to a target at the top of the Pha Nok Khao reservoir some 1.2 km east of PH-4.

Analysis of the data from the PH-6 well, which during drilling flowed gas from 1,843 meters to 2,014 meters subsea, is still ongoing and the field partners continue to discuss the forward program for bringing this well to the point of commercial deliverability.

The Ensign-16 rig, which has been contracted to drill the Phu Horm South appraisal well in neighboring block L15/43, has now arrived in Thailand and preparations are continuing for an anticipated spud in July 2007.

Salamander is an independent upstream oil and gas exploration and production company focused on Southeast Asia. Since its formation, Salamander has built a balanced portfolio of production, development and exploration assets with interests principally located in Indonesia and Thailand.

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