One quarter of Salamander Energy's wells in the Bualuang Oil Field in the Gulf of Thailand are in production and performing ahead of pre-drill expectations, the company has disclosed.

In an operational update issued by the FTSE 250-listed company on Monday, Salamander Energy reported that four of its current 16 well development drilling programmes had been completed to date and encountered between 495m and 530m of pay with excellent reservoir properties of between 27% and 33% porosities and 85% - 99% net-to-gross ratios.

The company stated: "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 approximately 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 company's current drilling programme, five wells are expected to be drilled and completed in the area of the oil field known as the "East Terrace", bringing it on stream less than two years from discovery.

In addition, at least two of the company's main field wells are scheduled to 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.

Salamander is an Asia-focused independent exploration and production company with licenses throughout Ibndonesia and Thailand.

MF

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