Salamander strikes water not oil in Gulf of Thailand

There has been some disappointing news for oil explorer Salamander Energy at its dig in the Gulf of Thailand.

Test results from the exploration are "conclusive", with analysis showing that water is present in the tested section; in other words the Far East-1 well cannot be used for production.

The well will now be plugged and abandoned, with the rig being prepared for release.

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James Menzies, Chief Executive of Salamander, said: "Whilst this result is disappointing in isolation, we remain extremely excited by the exploration potential in (the) Greater Bualuang area.

He added: "We have started the tendering process to bring a rig to the area in 4Q [fourth quarter] 2012 to embark on an extensive exploration programme principally across the G4/50 licence."

BS