Salamander Energy Spuds Dong Mun Appraisal Well

Salamander Energy the Dong Mun-3 (DM-3) appraisal well in Block L27/43, Khorat Basin, North East Thailand has been spud.

The DM-3 well will appraise the Dong Mun gas discovery made by Esso in 1990, which tested gas from the Permian Pha Nok Khao carbonate reservoir. The Dong Mun discovery is estimated to contain 150 Bcf of recoverable reserves in the mean case and is located approximately 45 km from the gas-fired Nam Phong Power Plant.

The well is being drilled using the Ensign-16 rig and is programmed to reach a depth of approximately 2,700 meters sub-sea. Salamander holds a net 27.2% interest in Block L27/43 and the estimated net cost of drilling is $2.7 million prior to any testing operations being conducted.

On completion of the DM-3 well, the Ensign-16 rig will move to the adjacent L15/43 exploration concession to drill the Phu Horm South-1 well.

James Menzies, Chief Executive of Salamander, commented:

"We are pleased to be embarking on our drilling program in the Khorat Basin with the spudding of this appraisal well. There are a number of analogous structures in L27/43 that offer follow up potential in the event of success at Dong Mun."