Salamander reports successful appraisal in Thailand

27 February 2012

UK-based oil and gas exploration company Salamander Energy has reported the successful appraisal of Block L27/43 at the Dong Mun discovery in Northeast Thailand.

The company said the Dong Mun-3 side-track (DM-3ST) well was drilled to a total depth of 3,010m MD and was flow tested at a rate of 15.1 million standard cubic feet per day (MMscf/d) with a flowing pressure of 842 psi through a 56/64" choke.

The DM-3ST bottom hole was identified in the wider Dong Mun structure through the company's 3D seismic data.

The well encountered Pha Nok Khao formation on prognosis and comprised a gross vertical column of 103m carbonate reefal build-ups or beds.

DM-3ST well will be further tested to determine its resource potential and the productive capacity through additional stimulation.

The company expects that the flow rate and pressure data from the DM-3ST well, including the 3D seismic data, will lead to a commercial gas accumulation in the block.

Salamander CEO James Menzies said, "The DM-3ST result is very encouraging and taken together with the Dong Mun-1
discovery well and recently acquired 3D seismic data, indicate a commercially viable development project."

Salamander holds a 27.2% interest in Block L27/43, and is yet to file for commerciality with the Thai Department of Minerals & Fuels.