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Salamander Energy provide operational update

26 Jun 2012
Salamander Energy plc provides an operational update on the drilling at the Far East prospect in its operated B8/38 licence, Gulf of Thailand.

The Far East well has been drilled to a total vertical depth sub-sea ("TVDSS") of 1,396m and is currently being prepared for a Drill Stem Test ("DST").

The well encountered a 25m section of excellent quality T5 Miocene sandstones, the primary target on depth prognosis. However, following the acquisition of a full suite of wireline logs, these sandstones are interpreted to be water-wet, with no evidence of hydrocarbon saturation.

The well was then deepened to test the secondary objective. The well penetrated a conglomeratic section overlying the Ratburi carbonates from 1,348m TVDSS to current total depth ("TD"). Oil shows were observed at 1,366m TVDSS and severe mud losses were experienced from 1,370m TVDSS. Interpretation of logging while drilling data shows zones of potential oil pay in highly porous section from 1,365m to current TD.

The well is currently being stabilised ahead of running a barefoot DST, the results of which will be known over the coming days.