Salamander reports successful appraisal

Oil and gas producer Salamander Energy has reported the successful appraisal of Block L27/43 at the Dong Mun discovery, onshore Northeast Thailand.

The group, which has a 27.2% non-operated interest in the block, said the well was flow tested at a rate of 15.1m standard cubic feet per day.

Work is ongoing to determine resource potential as well as the productive capacity of the reservoir through additional stimulation, the firm said, adding that alongside its partners it believes the flow rate and pressure data from the DM-3ST well, together with the 3D seismic data, point to a commercial gas accumulation in the block.

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The operator is now preparing to file for commerciality with the Thai Department of Minerals & Fuels.

"The DM-3ST result is very encouraging and taken together with the Dong Mun-1 discovery well and recently acquired 3D seismic data, indicate a commercially viable development project," Chief Executive Officer James Menzies said.

Shares were up 1.2% at 250p in early trading.

NR