Rig: Trident IX

Mandarin-1 Spud

Salamander Energy plc, the Asia focussed independent oil and gas exploration and production company, announces the spud of the Marindan-1 exploration well in the Kutai PSC, East Kalimantan, Indonesia. Salamander holds a 23.4% interest in the Kutai PSC. The Marindan-1 well will be drilled to a depth of approximately 3,265 metres true vertical depth sub-sea and is targeting gas in multiple stacked sequences comprising both sandstone and carbonate reservoirs of late Miocene to early Pliocene age. The well will be drilled by the Trident-1X jack up rig in a water depth of approximately 55 metres. It is expected to take approximately 30 days to complete on a dry hole basis.

Dambus-1 Exploration Well, Kutai PSC, Indonesia

Serica and its partners spudded the Dambus-1 offshore exploration well on 4 September 2010 using the jack-up drilling rig Trident IX. The objective of the well was to investigate the potential for gas and oil accumulations in a stacked sequence of Miocene sands. Dambus-1 was drilled as a deviated well to a total depth of 3,225 metres measured depth ("MD") (2,713 metres true vertical depth subsea ("TVDSS"). Based on the indicative data obtained while drilling, hydrocarbons were encountered in clean sands in the gross interval 2,070-2,102 metres MD (1,787 - 1,812 metres TVDSS) and there were indications of further hydrocarbon-bearing sands in an interval below 2,760 metres MD (2,340 metres TVDSS). In order to obtain definitive data on the extent of the discoveries the well was plugged back and sidetracked and wireline logs, pressure data and fluid samples were acquired. Sidetrack Dambus-1ST was drilled to a total depth of 2,800 metres MD (2,568 metres TVDSS). Excellent quality gas-bearing Miocene reservoir sands were encountered in the interval 2,025-2,047 metres MD (1,795-1,816 metres TVDSS) of which the net gas-bearing sands amounted to approximately 18 metres. Following an extensive logging and sampling programme in Dambus-1ST, the deeper sands were found to be water bearing. The upper gas-bearing sands alone are not expected to be commercially exploitable and the well is therefore being plugged and abandoned. The Trident IX drilling rig will now move to drill the Marindan exploration well, the second well in the present two-well programme in the Kutai PSC.

Dambus-1 Exploration Well

Salamander Energy plc, the Asia focussed independent oil and gas exploration and production company, announces that the Trident-1X jack up rig has arrived at the Dambus-1 (“Dambus”) location in the Kutai PSC, East Kalimantan, Indonesia and drilling operations have commenced. Salamander holds a 23.4% interest in the Kutai PSC. The Dambus exploration well will be drilled to a depth of approximately 2,700 metres sub sea and is targeting multiple stacked deltaic sandstone reservoirs of Upper Miocene age. The mean gross pre-drill estimate of prospective recoverable resource is c. 130 MMbo and 300 Bcf of gas. The well will be drilled in a water depth of 85 metres and is expected to take approximately 40 days to complete on a dry hole basis. On completion of the Dambus well the rig will move to the Marindan prospect in the south of the Kutai PSC.