Salamander Energy plc, the Asia focussed independent oil and gas exploration and production company, provides an operational update on its forthcoming drilling activity in Block L15/50, Onshore Thailand, and Block B8/38, Gulf of Thailand.

Dao Ruang Appraisal, L15/50, Western Khorat, Thailand (50%, Operator)

Mobilisation of the MB Century 26 land rig, contracted for appraisal drilling on the Dao Ruang gas discovery, began on Monday 3^rd January. The first of the two, back-to-back appraisal wells is expected to spud on schedule, around the middle of this month. Dao Ruang is a 1993 Texaco gas discovery that has potential gross mean resources of 500 Bcf. The two appraisal wells are targeting the fracture network in the Permian carbonate reservoir as mapped on recently acquired high resolution 3D seismic.

Bualuang East Terrace Exploration, Gulf of Thailand (100%, Operator)

The Ocean Sovereign jack-up rig, contracted for the B8/38 drilling campaign, is currently held up in Johor, Malaysia, while the rig’s owner, Offshore Diamond, completes its foreign business licence paperwork to allow entry into Thai waters. Once these administrative issues have been resolved, the rig will be moved to the Bualuang field location for a programme of up to three exploration wells and six development wells. The first of these will be the Bualuang East Terrace exploration well, which is now expected to spud at the end of this month. This prospect is estimated to contain a mean 7 million barrels of oil (MMbo) with upside potential of 14 MMbo and has a 66% chance of success.

Enquiries:

Salamander Energy	020 7960 1580
James Menzies, Chief Executive Officer
Geoff Callow, Head of Corporate Affairs
Brunswick Group LLP	020 7404 5959
Patrick Handley
Fiona Micallef-Eynaud

About Salamander

Salamander is an Asia focussed, independent, FTSE 250, upstream oil and gas exploration and production company. Salamander has a balanced portfolio of production, development and exploration assets with interests located in Indonesia, Thailand, Vietnam and Lao PDR.