Further to the Operational Update of the 30th December 2009, Salamander Energy plc, the Asia focussed independent oil and gas exploration and production company, provides an operational update on its activities in the Khorat Basin, onshore north east Thailand and Lao PDR.
Phu Kheng-1 (L27/43 onshore Thailand, 27.2%)
Following an earlier frac-test on a zone between 2,048 and 2,058 metres true vertical depth sub-sea (mTVDSS), the L27/43 partners will conduct a second fractesting programme. This programme will target two shallow intervals in the Phu Kradung sandstones. Both of these zones exhibited good gas shows during drilling and subsequent log analysis suggest better porosity and permeability characteristics than seen in the deeper zone.
A hydraulic workover unit has been secured and operations are expected to recommence in early March.
Si That-3 (L13/48 onshore Thailand, 16.3%)
APICO, the L13/48 operator, has suspended the Si That-3 well following the completion of a Production Logging Tool (PLT) survey. Despite gas flow to surface being measured during testing, no free gas flow was detected by the PLT tool from the reservoir above the water zone. The gas seen at surface during testing is believed to be coming out of solution, and would be dissolved under reservoir conditions.
Following the results of the PLT survey, the operator will now conduct a review of the remaining prospectivity of the L13/48 licence.
Bang Nouan-1 (Savannakhet PSC Lao PDR, 30% and Operator)
The preparations of the Bang Nouan-1 well site have now been completed and the majority of trucks transporting the Century 26 rig have arrived on site. The rig is now being constructed and the well is expected to spud in the coming days.
Salamander Energy 020 7960 1580
James Menzies, Chief Executive Officer
Geoff Callow, Head of Corporate Affairs
Brunswick Group LLP 020 7404 5959
About Salamander Energy
Salamander Energy is a full-cycle, independent upstream oil & gas exploration and production company. The Company is Asia focussed and a member of the FTSE 250 index. Salamander has a balanced portfolio of production, development and exploration assets with interests located in Indonesia, Thailand, Vietnam, Lao PDR and the Philippines.