OilVoice - Salamander Energy Announces Vietnamese Acquisition

Salamander Energy Announces Vietnamese Acquisition

Thursday, March 18, 2010

Salamander Energy plc, the Asia focussed independent oil and gas exploration and production company, announces that it has agreed to acquire a 50% interest in and operatorship of Block 101-100/04 from Santos Vietnam Pty Ltd and Singapore Petroleum Vietnam Song Hong Co Ltd. Block 101-100/04 is located in the Hanoi Trough, Offshore Northern Vietnam, a basin which is at the early stages of exploration. The acquisition is subject to Vietnamese government and regulatory approval.

Key Points:
• Operated position in the Hanoi Trough - a new basin entry in Vietnam, a key region for Salamander
• Cat Ba oil prospect to be drilled in 2011
• Over 500 sq.km of existing 3D seismic
• Follow on drilling potential with at least three further prospects identified on the block to date
• As part of the farm-in agreement Salamander has offered the Block 101-100/04 field partners a Call option to retain their 50% interest on completion of the Cat Ba well

James Menzies, Chief Executive of Salamander, said:
'The Hanoi Trough is a proven but underexplored basin Offshore Northern Vietnam, part of a play system that extends east to the Beibu Wan fields. This deal introduces Salamander to a new play and broadens our prospect inventory and medium term drilling options.'