Salamander Energy Announces Phu Horm-10 in Thailand to be Completed as a Producing Well

Friday, September 21, 2007

Salamander, an independent upstream oil and gas exploration and production company focused on South East Asia, with assets in Indonesia, Thailand, Vietnam, Laos and the Philippines, announces that following successful testing, the Phu Horm-10 well on the Phu Horm gas field, Thailand, will be completed as a producing well.

The PH-10 well was deviated from the PH-4 surface location and encountered the top of the Pha Nok Khao carbonate reservoir at a depth of 2,068 metres true vertical depth sub-sea (TVDSS) some 1.2 km east of the surface location. It was drilled to a total depth (TD) of 2,343 metres TVDSS. Good gas shows were seen over a 140 metre interval in both the Pha Nok Khao and the overlying Hua Hin Lat formations.

Following logging operations, the Phu Horm partners elected to test the PH-10 well which has stabilized at an average flow rate of 10 MMscfd. Production gauges have been placed down hole and the well will be hooked up to the Phu Horm production facilities in order to provide additional capacity in support of the existing production wells.

Commenting on the well result, James Menzies, Salamander Energy’s Chief Executive said:

“We are delighted that PH-10 will be a producing well. This well result and the continued stable production performance of the field reinforces management’s belief in Phu Horm’s considerable potential. PH10 will provide the additional capacity necessary to allow flexibility in the management of the producing wells. This is an encouraging start to our drilling programme that will see five fields and discoveries across the portfolio appraised before the end of the year.”

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