Salamander Energy Spuds Tutung Alpha-2 Well

Salamander Energy plc announced the spudding of the Tutung Alpha-2 (TA-2) appraisal well in the Bontang PSC, East Kalimantan, Indonesia.

The Tutung discovery is a gas-condensate accumulation on the northern flank of the prolific Kutei Basin in East Kalimantan, Indonesia. The TA-2 well is a follow up to the successful Tutung Alpha-1 (TA-1) well that was completed in February 2008.

The TA-2 well will appraise the Middle Miocene deltaic sandstones of the Pulubalang Formation and a testing program is planned upon completion of drilling. TA-2 will be drilled using the Ensco-1 barge mounted rig and is programed to reach a depth of approximately 3,200 meters subsea.

Salamander is operator of the Bontang PSC and holds a net 70% interest.

"Following the encouraging results of the TA-1 well, we are aiming to demonstrate the commercial viability of the development of the Tutung discovery with the TA-2 well," said James Menzies, CEO of Salamander. "Having acquired 3D seismic over the offshore area of the Bontang PSC last year, we have now mapped numerous prospects in the block. The area is looking highly prospective and we look forward to drilling the first of these exploration targets later in 2008."

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