Salamander signs rig use contract

Oil and gas producer Salamander Energy has signed a contract with a subsidiary of Atwood Oceanics enabling it to use the Atwood Mako jack-up rig across its licences in the Gulf of Thailand.

The contract has an initial period of 12 months and can be extended for a further year.

The firm also said the Ensco-53 jack-up rig will be under contract with Salamander from Marth 24th which it will immediately use on the B8/38 licence. The rig arrival has been delayed due to a combination of weather downtime and slippage in the previous operator's drilling programme.

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"A four well programme is planned in the B8/38 licence, comprising two development and two exploration wells," the firm said.

"Management has elected to initially drill the two development wells in order to benefit from prevailing oil prices and exploration drilling is expected to follow in May."

The share price fell 1.68% to 222.70p by 13:16.

NR