Salamander Raises Funds for Further Offshore Ops in South East Asia
The Board of Salamander on Friday announced a fully underwritten 13 for 20 Rights Issue to raise proceeds of approximately $201 million (£124 million), net of expenses, through the issue of up to 100,654,935 New Ordinary Shares. New Ordinary Shares will be issued at a price of 130 pence each, representing a discount of 49 per cent. to the closing price of 256.1 pence per Existing Ordinary Share on 26 April 2012.
The net proceeds of the Rights Issue will be used to maximise value from the existing focused portfolio through a combination of: enhancement of the Bualuang oil field, Gulf of Thailand through the addition of platform-based oil processing facilities which are expected to reduce operating costs, extend the economic field life and potentially release further recoverable oil volume; contracting a second rig in the Gulf of Thailand to accelerate exploration and appraisal drilling with the plan to drill at least six exploration wells in parallel to the development drilling programme to be undertaken by the Atwood Mako rig; and investment in a potentially transformative exploration drilling campaign in the North Kutei Basin, Indonesia.
James Menzies, Chief Executive of Salamander Energy, commented: “During 2011 Salamander Energy refocused its portfolio on three core areas where it has large, operated interests with material upside exposure and high quality, anchor assets. The rights issue provides us with the additional capital to accelerate our drilling programme around these assets and to aggressively pursue the opportunities they present. The Board believes that Salamander is very well positioned to create and capture value for shareholders and we look forward to a busy and productive programme.”
Salamander Energy is an independent upstream oil and gas exploration and production business focused on South-East Asia. The Company has built a balanced portfolio of exploration, development and production assets and the Directors believe the Company has established a strong competitive position in South-East Asia.
The Group’s asset portfolio includes three producing fields and three assets under development, a number of discoveries under appraisal and an inventory of exploration leads and prospects. The Group holds both operated and non-operated positions in its assets. Holding operated positions in its core assets allows the Group to use its expertise in exploration, appraisal, development and production to create additional value for its Shareholders.
The Group organises its assets around three core geographical focal points where it believes it has a competitive edge: (1) the Greater Bualuang Area in the Western Gulf of Thailand, (2) the Greater Kerendan Area in the Barito Basin, Central Kalimantan, Indonesia and (3) the North Kutei Basin in East Kalimantan, Indonesia. These focal points are supplemented by additional assets elsewhere in the South-East Asian region.
Salamander has offices in London, Singapore, Jakarta, Ho Chi Minh City and Bangkok.
Source: Salamander Energy, April 29, 2012