Gurame-1X to be Plugged and Abandoned

Salamander Energy reports that the Gurame-1X well has been drilled by the Ensco-I to a total depth of 3,010 meters. Gurame-1X is located in the Seruway PSC, offshore North Sumatra.

Both the shallow Seurula and Keutapang ("S/K") and the deeper Baong formations were targeted with the Gurame-1X well and have been evaluated with a sampling and wireline logging program. The S/K sandstones were found to be water wet, while the presence of hydrocarbons was seen in two zones of the Baong formation at depths of approximately 2,810 meters and 2,850 meters. Analysis of the log data suggests that the formation displays low permeability characteristics and is tight at this location.

The well will be plugged and abandoned and the partners will review the forward program, incorporating the data gathered from Gurame-1X.

James Menzies, Chief Executive of Salamander, commented:

"The data gathered from Gurame-1X will be used to assess the hydrocarbon potential in the area, In particular there are multiple anomalies at the S/K sandstone level across the Gurame structure that warrant further investigation in addition to the other discoveries in the PSC. The Seruway partners will conduct further analysis in order to determine the forward drilling program. We now look forward to the rig being mobilized to the Bontang PSC to follow up on the successful Tutung appraisal with the drilling of Tutung Alpha-2."

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