Salamander Energy plc announces that the Dao Ruang-2 appraisal well, Block L15/50, Onshore North East Thailand, spudded on 16 January 2011. Dao Ruang is a 1993 Texaco gas discovery that has potential gross mean resources of 500 Bcf. Salamander has a 50% interest in, and is operator of, Block L15/50.

Dao Ruang-2 will be drilled, using the MB Century 26 rig to approximately 1,670 metres total vertical depth sub-sea. The well will target a fracture network in the Pha Nok Khao Permian carbonate reservoir on the eastern flank of the structure as mapped on the recently acquired high resolution 3D seismic. The well is expected to take approximately 45 days to complete on a dry hole basis.

On completion of the Dao Ruang-2 well, the rig will drill the Dao Ruang-3 appraisal well targeting a fracture network on the northwest flank of the structure.

James Menzies, CEO of Salamander, commented:

“Dao Ruang-2 is the first well in the Khorat basin to be drilled using modern high resolution 3D imaging techniques to aid visualisation of the fracture network. This technology could prove to be key in finding and commercialising resources in this province where Salamander has the leading acreage position.”

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.