Salamander Energy, an independent upstream oil and gas exploration and production company focused on Asia, announces interim results for the six months ended 30 June 2008.
FINANCIAL
• Revenue up 46% to $46.8 million (H1 2007: $32 million)
• Operating cash flow up 84% to $23.8 million (H1 2007: ($12.9 million))
• Post-tax loss of $6.6 million (after exploration write-off for Gurame-1X of $10.2 million) (H1 2007: Profit of $3.8 million)
• Entered a seven year, $200 million reserve based lending facility
• Average realisations of $111.31 per bbl and $4.80 per Mscf achieved (H1 2007: $58.95 per bbl and $3.59 per Mscf)
• Completed the acquisition of GFI Oil & Gas Corporation
OPERATIONS
• Production increased 6.5% to 8,200 boepd[[2] All reserves and production are working interest unless otherwise stated2] (H1 2007: 7,700 boepd)
• Development drilling completed on Bualuang and Kambuna fields resulting in subsequent upgrades to 2P reserves
• Continued appraisal and testing of Tutung discovery
• Discovery of potential new play in Northeast Thailand
H2 2008 OUTLOOK
• Financial position further strengthened with completion of $200 million equity Placing and Open Offer
• First oil from the Bualuang field, Gulf of Thailand commenced in August 2008 and is expected to contribute to a forecast increase in Group production to over 16,000 boepd in 2009
• Acquisition of an additional 15% interest and operatorship of the Kambuna field, offshore North Sumatra, Indonesia
• Acquisition of an additional 20% of Bontang PSC and 23.4% interest in Kutai PSC, Kutei Basin, Indonesia
• Progressing award of additional acreage offshore Southern Vietnam
• Plan of Development approved for South Sembakung field, East Kalimantan, Indonesia
Commenting on the results, Salamander’s Chairman Charles Jamieson said:
“The first half of 2008 has been one of continued expansion with successful drilling, M&A and portfolio development activity. Following the start up of production from the Bualuang oil field, Gulf of Thailand, production is expected to increase significantly in the second half of the year. With the Kambuna development continuing to progress we are forecasting further production growth in 2009.
The Company is in a healthy financial position following a strong first half year performance, the completion of the debt refinancing and subsequent equity fundraising. These factors combined with an active drilling programme over the next 18 months, put the Company in an excellent position to deliver strong growth in shareholder value.”
