Salamander Energy plc provides the following update on its Thai drilling operations in Block L15/50, onshore Northeast Thailand, and Block B8/38, Gulf of Thailand.

Dao Ruang-2 well, Block L15/50

The Dao Ruang-2 appraisal well has reached a total vertical depth of 1,915 m sub-sea (TVDSS) and an extensive programme of wire-line logging is underway. The well has penetrated a number of fracture zones associated with an increases in gas while drilling. The well also experienced a pressure kick at 1,840 m TVDSS caused by an influx of gas from a fracture zone.

With strong gas shows at the current TD, potential for further fractures associated with faulting below the current depth and given that the current depth is still within structural closure, the decision has been taken by the L15/50 partners to deepen the well by an additional 525 metres.

Drilling is expected to re-commence as soon as the current logging programme has been completed. It is expected that the deepening of the well will take approximately 8 days, at which point the partnership will decide on the optimal testing programme for the well.

Salamander has a 50% interest in, and is operator of, Block L15/50.

B8/38, Gulf of Thailand

Due to technical problems with the Ocean Sovereign jack-up rig, the Group has temporarily suspended its B8/38 drilling programme while repairs are carried out on the rig. Drilling is expected to have re-commenced by 7th April and there is no rig cost to the Group during this repair time.

Enquiries:

Salamander Energy	020 7960 1580
James Menzies, Chief Executive Officer
Geoff Callow, Head of Corporate Affairs
Brunswick Group LLP	020 7404 5959
Patrick Handley
Fiona Micallef-Eynaud

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 and Lao PDR.