Shares in Salamander Energy (SMDR) dropped sharply when the company announced its Bedug-1 exploration well in offshore Thailand has found gas, but not oil. This is bad news, which prompts us to take the shares off our 'buy' list.
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Bedug was drilled to test an extension of the South Kecapi-1 oil and gas field, to see how far good-quality, oil-bearing sandstone extended. Not far enough, was the answer. It did not help that the Bedug well had to be suspended after encountering well pressures further downhole that were too high for its drilling equipment to handle.