2010-05-18-2010-03-19

To acquire 50% operated WI in offshore North Vietnam block.

Salamander Energy Plc, London, (London: SMDR) plans to acquire a 50% interest in assets offshore northern Vietnam from Santos Vietnam Pty Ltd. and Singapore Petroleum Vietnam Song Hong Co Ltd. Financial terms of the farm-in agreement have not been disclosed.

Salamander will assume operatorship of Block 101-100/04 in the Hanoi trough, which is in the early stages of exploration. The Cat Ba oil prospect is expected to be drilled in 2011; Salamander says there are at least three additional prospects that have been identified on the block.

As part of the agreement, Salamander has given Santos and Singapore Petroleum a call option to retain their 50% interest on completion of the Cat Ba well.

Salamander chief executive James Menzies says, "The Hanoi trough is a proven but underexplored basin offshore northern Vietnam, part of a play system that extends east to the Beibu Wan fields. This deal introduces Salamander to a new play and broadens our prospect inventory and medium term drilling options."