Salamander Energy Plc abandoned a well it drilled offshore southern Vietnam, terming the dry hole a disappointment.
The well in Vietnam’s block 31 was plugged after being drilled to a vertical depth of 2,103 meters “without encountering significant hydrocarbons,” Salamander said in a statement today to the London Stock Exchange.
Salamander has stakes in exploration areas in Vietnam’s southern Mekong Delta and off the country’s southern and northern coastlines. London-based Salamander, also operates in Indonesia, Laos and Thailand.
“We expect some dry holes,” said Salamander Chief Executive James Menzies, in a statement. “Nevertheless, we are disappointed that drilling in this frontier basin has not offered more encouragement.”
Vietnam was Southeast Asia’s third-biggest oil producer last year after Indonesia and Malaysia, producing about 345,000 barrels a day, according to BP Plc. All of Vietnam’s output comes from areas off the country’s southern coast. Salamander said in May that it plans to begin drilling next year in northern Vietnam, hoping to open a new region to production.
Salamander shares yesterday gained 0.5 percent to 224 pence. For the year the company’s stock has declined 25 percent.
Source: Bloomberg