Salamander Energy Announces Dong Mun-3ST Appraisal Success

Thursday, Feb 23, 2012

Salamander Energy plc is pleased to announce the successful appraisal of the Dong Mun discovery with the Dong Mun-3 side-track (“DM-3ST”) in Block L27/43, onshore Northeast Thailand. The Group has a 27.2% non-operated interest in Block L27/43.

The DM-3ST well was drilled to a total depth (“TD”) of 3,010m MD (2,538.5m TVDSS). The top of the target Pha Nok Khao formation was encountered on prognosis and the well intersected a gross vertical column of approximately 103 metres of gas-bearing reefal carbonates, reaching TD without encountering the gas-water contact. The well was flow tested at a rate of 15.1 MMscf/d with a flowing pressure of 842 psi through a 56/64” choke.

The DM-3ST bottom hole was located using the recently acquired 3D seismic data over the wider Dong Mun structure. The mapped closure tested by the DM-3ST well extends to over 20 sq. km. Work is on-going to determine resource potential as well as the productive capacity of the reservoir through additional stimulation.

The L27/43 partners believe the flow rate and pressure data from the DM-3ST well, together with the 3D seismic data, point to a commercial gas accumulation in the block and the operator is now preparing to file for commerciality with the Thai Department of Minerals & Fuels.

James Menzies, CEO of Salamander commented:

“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.”

Source: Salamander Energy

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