Salamander Energy Plc (LON:SMDR), the Asia focused oil and gas exploration and production company, announced today that the Bang Nouan-1 gas well has been spudded.
Salamander, who is the operator and has a 30% working interest in the well, revealed that the Nouan-1 exploration in the Savannkhet prospect in Lao is now underway.
In June 2007, Salamander signed the Savannakhet PSC, which represented the first interest in oil and gas in the country since 1998. According to the Company, the Savannakhet PSC is thought to be an extension of the Khorat play beyond the Mekong river. The PSC area is 19,520 square kilometres and the basin is relatively unexplored. It is part of acreage previously held by Enterprise Oil plc from 1990 to 1998.
In 2008, Salamander acquired some new seismic data over these prospects ahead of a drilling programme in 2010. Several large structures have been identified from the seismic data in the block, including the large Bang Nouan and Non Chan gas structures and the Bang Hiang oil prospect. [1]
In December 2009, Salamander farmed out a further 30% working interest in the Savannakhet Block to Origin Energy, while the balance is held by PetroVietnam E&P (25%), IFC (10%) and NCD/LIBC (5%).
The Bang Nouan-1 Well targets gas in the Permian limestones of the Pha Nok Khao formation. The mean gross pre drill estimate of recoverable gas is 1.1 trillion cubic feet. The company plan to drill the well to 3,700 metres sub sea level, which is estimated to take 75 days to complete.
James Menzies, CEO of Salamander, commented:
"The Bang Nouan-1 well is the first operated well in our 2010 exploration and appraisal drilling programme. It is a high risk, high reward well located in the under-explored Eastern Khorat basin that has multi-Tcf of follow on potential in the surrounding, Salamander operated, acreage."
Salamander has a diverse portfolio of production, development and exploration assets with interests located in Indonesia, Thailand, Vietnam, Lao PDR and the Philippines. The Company has an active drilling programme in 2010 with 12 wells planned (8 exploration and 4 appraisal) in four main areas, targeting resources of around 100m barrels risked, or around 450m barrels unrisked. [2]
