North Kendang-2 Drilling Completed

18 August 2014

Salamander Energy plc
("Salamander" or the "Company")

North Kendang-2 Drilling Completed

Salamander Energy plc announces that drilling operations on the North Kendang-2 exploration well ("NK-2") in its operated South East Sangatta PSC have now been concluded.

The well reached a total depth of 2,569 metres true vertical depth sub-sea and encountered two hydrocarbon bearing intervals, one of which was the primary objective zone of high pressure encountered in the North Kendang-1 ("NK-1") well. This was successfully penetrated in NK-2 and comprised a 2.5m gas condensate bearing sand. In addition, a 10.5m gas bearing sand with oil shows was encountered at a shallower depth. This sand is at the same stratigraphic interval that flowed 6,000 bopd on test in the South Kecapi-1 DIR/ST well in the Bontang PSC.

The volume of hydrocarbons encountered is considered to be sub-commercial and the NK-2 well has been plugged and abandoned. Costs related to the NK-1 well control incident, and to drilling the NK-2 well to this same depth, are covered under the Company's insurance policies. This well concluded Salamander's drilling programme in the North Kutei and the Ocean General rig has now been released.

Enquiries:

Salamander Energy                                                                                         +44 (0)20 7432 2680
James Menzies, Chief Executive Officer
Geoff Callow, Head of Corporate Affairs

Brunswick Group                                                                                             +44 (0)20 7404 5959
Patrick Handley
Elizabeth Adams

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