Salamander hits Surin oil

August 6, 2013

Salamander Energy plc encountered oil at its G4/50-5 exploration well in the Surin prospect in the central portion of the Western sub-basin, Block G4/50, in the Gulf of Thailand, the company announced on 6 August 2013.

Oil was discovered in good quality Miocene fluvial sandstones in the primary N40 target zone over the interval 1525-1533m TVDSS. Wire-line logs and pressure data confirmed the presence of approximately 8m of oil pay. Oil samples recovered from the zone indicate a 31 degree API oil and mapping of the Surin fault block indicates between 15-20m of column height above the location of the well penetration.

Further evaluation is required to determine the potential resource volume encountered in the Surin discovery. The well has been plugged and abandoned as an oil discovery.

The G4/50-5 exploration well spud on 29 July 2013 using the Atwood Mako jackup.

James Menzies, Chief Executive of Salamander, commented: "The discovery of oil in the Surin fault block, a 25 km step out from the Bualuang field, has proven the access to an oil charge in the Western Central sub-basin, which had been identified as a key risk pre-drill. Resource estimates for Surin are being assessed but this is clearly a positive step in de-risking the neighboring prospects and in understanding the local petroleum system."



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