Results centre

James Menzies

"2011 was an important year for high-grading the portfolio and refining our strategy. We have also materially grown our reserve base through both successful exploration and commercialising gas resources, and are now reporting record levels of revenue, cash flow and pre-tax profit. We have also taken an important step in defining the potential of our North Kutei acreage with recognition of gross prospective resources of over 670 million barrels of oil equivalent independently verified in the top four prospects."

"We are now stepping the operational activity up a gear with two rigs running and a third secured under long-term contract. With our focus on drilling in proved basins where we have a competitive edge, the Board sees great opportunities ahead and we look forward to 2012 with a keen sense of anticipation."

Full Year Results

26 March 2012

Salamander Energy announces its full year results for the year ended 31 December 2011.

  • Revenue increased by 26.2% to $408.0 million (2010: $323.4 million)
  • Record pre-tax operating cash flow, before working capital changes, increased by 68% to $293.6 million (2010: $174.4 million)
  • Record post-tax operating cash flow increased by 82% to $193.9 million (2010: $106.5 million)
  • Profit before tax of $112.6 million (2010: loss of $113.7 million)
  • Loss after tax of $45.5 million (2010: $169.5 million)
  • Year-end cash and funds balance of $85.8 million (2010: $99.2 million)
  • Net debt of $210.1 million (2010: $190.2 million)
  • 2P Reserves increased by 13.6% to 75.3 MMboe (2010: 66.3 MMboe)
  • Average daily production of 18,600 boepd (2010: 20,300 boepd)
  • Bualuang East Terrace oil discovery, 8 MMbo added to 2P reserves
  • Matured prospect inventory in North Kutei, independent CPR points to 676 MMboe of gross mean prospective resources in four high-graded prospects
  • 2012 average daily production rate forecast to be 12,000-13,000 boepd following disposal of non-core producing assets
  • Bualuang Bravo Platform on schedule for installation 3Q 2012
  • Ensco-53 rig mobilised for development and exploration drilling in Greater Bualuang area
  • Tutung Alpha-3 spudded, gas appraisal drilling ahead
  • Signed 12 month contract for Atwood Mako jack up rig in Greater Bualuang area from 3Q 2012
  • Exploration drilling in North Kutei to commence 4Q 2012
KPI 2011 2010 Comment Outlook
Working Interest Production (boepd) 18,600 20,300 Lower year-on-year production following the sale of interests in the ONWJ and SES PSC’s during 2H 2011. Production in 2012 is expected to average 12,000-13,000 boepd. Production is forecast to rise to over 20,000 boepd in 2014.
Finding, Development & Acquisition Cost per barrel (3 yr average) ($ per boe) 20.22 24.29 Represents an all in cost of the reserves base. 2011 saw the addition of low cost reserves from the Kerendan field and reflects reserves upgrades and exploration success on the Bualuang field/East Terrace. The Group is looking to add reserves close to infrastructure through development/exploration activity in a number of core areas.
Operating Costs ($ per boe) 15.46 15.11 Opex per bbl was broadly in line with 2010. Opex per bbl is expected to stay broadly flat in 2012 before falling in 2013 as production from Bualuang rises.
Operating Cash Flow ($ per entitlement boe) 52.51 29.63 Operating cash flow per barrel growth due to higher gas realisations, stronger oil prices and an increase in the proportion of oil in the production mix The disposal of the low margin ONWJ/SES production should also improve cash flow on a unit basis.
Reserves Replacement
(3 year average) 		140% 279% The Group materially increased reserves during 2011. Successful development drilling on the Kerendan field could lead to commercialising further gas resource and further reserve bookings.
Lost Time Injury Frequency (per million man hours) 0.85 0.4 Three LTI’s were reported in 2011. The LTIFR is in line with
the OGP average. 		The Group targets zero Lost Time Injuries every year and has an active HSE plan to help try to achieve this.

Operations

Enquiries

Salamander Energy
James Menzies, CEO,
Geoff Callow,
Head of Corporate Affairs
020 7960 1580

Brunswick Group LLP
Patrick Handley
Fiona Micallef-Eynaud
020 7404 5959