Regional Focus
Asia is home to both high growth energy markets and some of the largest producing oil and gas basins in the world. As the largest independent E&P in the region, Salamander’s regional focus has helped the Group to:
- build a deep understanding of the region’s petroleum geology;
- maintain and deepen its network of contacts and relationships;
- source value accretive M&A opportunities via unilateral discussions;
- and anticipate and respond to changes in the operating and economic environment.
Knowledge and Relationships
Our strong local knowledge and relationships with national and regional governments, national oil companies, key service providers and peers provide Salamander with a sustainable competitive edge. On a technical and operational level, the Group uses the intelligence and expertise gained from its producing and development assets and deploys it in its exploration and appraisal activity.
Balance Sheet
The Group is well funded for its future activities. At the end of 2010 the Group had cash and cash equivalents of approximately $99 million and a net debt of approximately $190 million. A growing production profile is driving revenue and cash flow growth. This, combined with a disciplined approach to capital investment, translates into a growing free cash profile providing the Group with the financial flexibility to reduce debt, accelerate developments and fund further exploration.
Acreage Position
Salamander has built a portfolio focused on three main regions, namely onshore Northeast Thailand, offshore Gulf of Thailand and East Kalimantan, Indonesia where it has majority, operated stakes in plays that combine reserves/resources with both exploration upside and room for material growth (both organic and inorganic). In all of these areas Salamander has scale combined with a technical competitive advantage and the relationships necessary to enable the Group to identify the opportunities to dominate the play.
Exploration leverage
The Group has built one of the largest in-region technical teams of any oil and gas company operating in Southeast Asia. This is comprised of individuals who combine regional and international knowledge, who can apply the best technology available globally with an in-depth understanding of the geology. The Group high grades its prospect inventory and is funded to drill 12 to 14 E&A wells a year from its current portfolio. In 2011 the Group plans to drill 9 exploration and 4 appraisal wells targeting 312 MMboe of net unrisked resource (95 MMboe on a risked basis).