UK: Salamander Energy Increases Daily Production to 20000 boepd; 1H 2010 Results

Salamander Energy, an independent upstream oil and gas exploration and production company focused on Asia, announces its half year results for the six months ended 30 June 2010.



* Revenue up by 73% to $133.5 million (1H’09: $77.2 million)

* Operating cashflow up by 56% to $63.2 million (1H ’09: $40.5 million)

* Pre-tax loss of $90.3 million (1H’09: loss of $5.8 million)

* Pre-tax profit of $11.8 million (1H’09: loss of $5.8 million) adjusting for non cash items1

* Funds as at 30 June of $168.8 million (FY ’09: $59.2 million)2

* Net debt at 30 June of $98.2 million (FY ’09: $119.3 million)

* Raised $100 million convertible bond issue


* Average production increased by 25% to 16,000 boepd3(1H’09: 12,800 boepd); current daily production c. 20,000 boepd

* Completion of Phase IV of development drilling in Bualuang oil field

* Kambuna gas-condensate field reached full DCQ production

* Maintained excellent track record in HSE

* Deepened and broadened portfolio through increasing interest in Bontang PSC and Bengara-1 PSC, and with entry into block 101-100/04 in Vietnam


* Expect to complete acquisition of additional 40% interest in B8/38 licence in September 2010, taking interest to 100%

* On a proforma basis for the B8/38 acquisition average daily production in 2010 forecast to be over 20,000 boepd

* Further development of current portfolio forecast to deliver production of 30,000 boepd during 2013

* 2H 2010 drilling programme targeting 270 MMboe of net unrisked resource, 66 MMboe of net risked resource, in producing basins

* Fully funded exploration and appraisal programme

Commenting on the results, Salamander’s Chairman Charles Jamieson said:

“The first half of the year has been a busy period for Salamander, during which the group grew production, revenue and cash flow, secured funding for continued portfolio expansion and negotiated a major acquisition increasing our interest in a key asset we know well. While there were some drilling disappointments during the half year, the focus in the second half is on lower-risk prospects in producing basins and the Board is confident that Salamander is well positioned and fully funded to deliver further growth.”


Source: Salamander energy, August 26, 2010: