Bualang development enters new phase

Salamander Energy will resume exploration drilling shortly on the B8/38 license offshore Thailand.

Offshore staff

LONDON -- Salamander Energy will resume exploration drilling shortly on the B8/38 license offshore Thailand. The Bualuang East Terrace well should spud in mid-December, followed by drilling of the East Bualuang and North West Bualuang Terrace prospects in January.

The company has also completed preparations for a new phase of development drilling on the Bualuang field, designed to increase production next year to around 11,000 boe/d. Under this phase, the platform will be upgraded to accommodate drilling of three new horizontal wells, and sidetracking and re-completion of three existing production wells.

Further development of the field will lead to installation of a second well head platform (“Bravo”) in 2012.

Offshore North Sumatra, Salamander plans to drilling new exploration prospects next year, targeting structures that can be quickly tied into the Kambuna field facilities.

It also expects to drill an exploration well on the Cat Ba prospect, block 101-100/04 (50%), offshore Northern Vietnam.

11/23/2010

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