Salamander Energy plc announces that the first four wells of the current sixteen well development drilling programme on the Bualuang oil field, Gulf of Thailand are now in production and have been performing ahead of pre-drill expectations. The wells are all being drilled from the Bravo platform using the Atwood Mako rig.

Bualuang Development Drilling

The four wells completed to date are the BB-01H, BB-04H, BB-06H and BB-10H wells. All the wells have been drilled horizontally into the T4 Miocene sandstone reservoir, encountering between 495 m to 530 m of pay, with excellent reservoir properties of 27% - 33% porosities and 85% - 99% net to gross ratios. The wells have been completed using standalone screens and electric submersible pumps.  The average time for drilling, completion and production handover for each well has been 21 days.

The performance to date has been excellent and individual well deliverability is ahead of pre-drill expectations. Year to date production for the Bualuang field has averaged 10,531 barrels of oil per day (“bopd”).  Average daily production in 2012 was c. 7,200 bopd and the full year production rate in 2013 is forecast to be between 11,000 and 14,000 bopd, representing a minimum of a 50% increase in production year on year.

In the current drilling programme, five wells will be drilled and completed in the East Terrace, bringing it on stream less than two years from discovery. In addition, at least two of the main field wells will be slant drilled into the T2 and T5 reservoirs, to assess the potential from these unexploited reservoirs and add additional reserves to the field.

Salamander has contracted the Atwood Mako rig for a two year period up until September 2014.

Bualuang Facilities Update

The Processing and Utility modules for use on the Bualuang Bravo platform are being designed and fabricated by Thai Nippon Steel at its yard in Bangpakong, Thailand and are on target to be installed in Q1 2014.

In addition, a Letter of Intent has been issued to Teekay Nordic Holdings Inc. for a Floating Storage & Offtake vessel to be operational in the field by July 2014.

 

 

Enquiries:

Salamander Energy
+ 44 (0)20 7432 2680
James Menzies, Chief Executive Officer     
Geoff Callow, Head of Corporate Affairs     
      
Brunswick Group LLP     
+44 (0)20 7404 5959
Patrick Handley     
Elizabeth Adams