com:20090907:RnsG6005Y
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RNS Number : 6005Y  
  
Salamander Energy PLC  
  
07 September 2009  
  
7 September 2009  
  
Salamander Energy plc  
  
("Salamander" or the "Group")  
  
Operational Update Phu Kheng-1  
  
Salamander Energy plc, the Asia focussed independent oil and gas exploration and 
production company, announces that the Phu Kheng-1 exploration well in the 
L27/43 concession, Northeast Thailand, has been suspended ahead of a fracturing 
("frac"), completion and testing programme. Salamander holds a net 27.2% 
interest in the L27/43 concession.  
  
The Phu Kheng-1 well was drilled to a total depth of 2,204 metres sub-sea and 
encountered Jurassic and Triassic sandstones of the Phu Kradung and Nam Phong 
Formations. Subsequent wireline logging confirmed these sandstones as being 
gas-saturated and with low porosity and permeability, as prognosed. A well 
developed sandstone in the Lower Nam Phong formation, over 130 metres in gross 
thickness, was selected for frac testing across a 50 metre zone between 1,825 
and 1,875 metres sub-sea.  
  
As part of the operating procedure, an attempt was made to perforate the well 
casing across the test interval by detonating charges using perforation guns, 
prior to hydraulic stimulation. Subsequent evaluation indicates that the 
perforation channel into the formation appears insufficient for effective frac 
treatment and the perforation job will need to be re-run ahead of testing the 
well.   
  
The L27/43 operator intends to re-perforate the interval and has already 
obtained the necessary permits to import the explosives, which are currently 
being procured. It is planned to complete the test programme with use of a 
workover rig within the next 4 to 8 weeks depending upon the delivery time of 
the perforating charges and the availability of the rig.   
  
The Phu Kheng-1 well has been suspended with the testing equipment on zero cost 
stand-by at the well location. The Century 26 drilling rig is currently rigging 
down and the move to the Si That-3 location is underway. The Si That-3 appraisal 
well is expected to spud in approximately 7 days.   
  
Enquiries:   
  
 
  Salamander Energy                         020 7960 1580  
  James Menzies, Chief Executive Officer                   
  Geoff Callow, Head of Corporate Affairs                  
                                                           
  Pelham PR                                 020 7337 1500  
  Mark Antelme                                             
  Evgeniy Chuikov                                          
  Henry Lerwill                                            
  
  
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.   
  
 
This information is provided by RNS  
  
The company news service from the London Stock Exchange  
  
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