Salamander's Dong Mun Holds Possible 'Significant Resources'

Salamander Energy has reported the initial results of the recent appraisal of the Dong Mun discovery in Block L27/43, Khorat Basin, North East Thailand.

The Dong-Mun 3 (DM-3) well was drilled to a total depth of 2,837 m. sub-sea and has been suspended pending a future testing programme. The well encountered gas in the Upper Jurassic sandstones of the Phu Kradung Formation over a 50 m. gross interval between 1,426 and 1,476 m. sub-sea. The deeper Nam Phong Formation sandstones were also gas-bearing over an 80 m. gross interval between 1,981 m. and 2,061 m sub-sea. No tests were conducted due to lack of suitable testing equipment for this interval, however mapping of these formations suggests that there is potential for significant volumes of gas in place and this will be the subject of further review and analysis.

DM-3 encountered the top of the gas-bearing Pha Nok Khao (PNK) Formation carbonates at a depth of 2,808 m. sub-sea, down dip of the main Dong Mun reef. A full suite of logs were run and a core sample recovered of the PNK formation, which is interpreted to be a platform carbonate and exhibits evidence of dolomitisation at the DM-3 location. The APICO partners have elected to suspend the well in order to allow a full technical evaluation ahead of any future testing programme.

The Ensign-16 rig will now move to the adjacent L15/43 exploration concession to drill the Phu Horm South-1 well.

James Menzies, Chief Executive of Salamander commented, "The gas-bearing sandstones are very encouraging and the initial indications are that there may be significant resources in place, potentially identifying a new play in the area. More detailed analysis will now be conducted prior to returning to test this interval. We now look forward to drilling the Phu Horm South-1 appraisal well."