Salamander Energy Plugs and Abandons a Duster Offshore Vietnam

Salamander Energy plc, the Asia focussed independent oil and gas exploration and production company, announces that it has plugged and abandoned the Tom Su Lua-1X exploration well in Block DBSCL-01, in the Vinh Chau Graben system, offshore southern Vietnam.

The DBSCL01-TSL-1X well, the first exploration well in the basin, has been drilled to a total vertical depth sub-sea of 1,380 metres. Following the completion of wire-line logging operations, the well has been plugged and abandoned as a dry hole. The well encountered both potential seals and high quality reservoir sandstones which were water-wet in the Tertiary clastic section.

The PVD-1 jack up rig will now move approximately 25 kilometres south to drill the 31-Tom Hum Xanh-1X (“THX-1X”) exploration well in Block 31. This well is targeting an oil prospect with a mean gross pre-drill recoverable resource estimate of c. 80 MMbo.

James Menzies, Chief Executive of Salamander, said:

“As the first exploration well in an undrilled basin, the Tom Su Lua prospect was viewed as high risk. Although a dry hole, the TSL-1X well confirmed certain elements of the play system in the Vin Chau graben. We now look forward to drilling the THX-1X exploration well, while we continue to analyse the valuable geological information provided by the TSL-1X well.”

About Salamander

Salamander is an Asia focussed, independent, FTSE 250, upstream oil and gas exploration and production company. Salamander has a balanced portfolio of production, development and exploration assets with interests located in Indonesia, Thailand, Vietnam, Lao PDR and the Philippines.

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Source: salamander-energy, June 29, 2010;