Salamander Energy Plc (LON:SMDR), the Asia focused oil and gas group, has plugged and abandoned the Tom Hum Xanh-1X exploration well in Block 31, in the Vinh Chau Graben system, offshore southern Vietnam. The well is the second consecutive dry hole for Salamander on Block 31, which announced at the end of June that the Tom Su Lua-1X well was set to be plugged an abandoned.
During the latest work, the 31-THX-1X well was drilled to a total true vertical depth subsea of 2,103 metres without encountering significant hydrocarbons in the target reservoir sections. Following the completion of wire-line logging operations, the well has been plugged and abandoned as a dry hole and the rig is currently being towed off location. Salamander entered into a farm out agreement with Origin Energy, announced in December 2009, which resulted in it retaining an operated 35% interest in the Block 31 production sharing contract.
James Menzies, Salamander’s chief executive, said: “With an intensive exploration programme we expect some dry holes. Nevertheless we are disappointed that drilling in this frontier basin has not offered more encouragement. Salamander's drilling campaign will be moving on to the proven Kutei basin, offshore East Kalimantan, Indonesia.”
Salamander kicked off 2010 with an active drilling programme of 12 exploration and appraisal wells targeting 340m barrels of oil equivalent of net unrisked resource (75 MMboe of net risked resource). Earlier this week, the company agreed a deal with SOCO International (LON:SIA) to buy its 40% stake in the B8/38 licence in the Gulf of Thailand. Salamander already owns 60% of the licence, which contains the Bualuang oil field, and is the operator of the field.
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