Results centre

James Menzies

“In 2012 the Group successfully prepared the technical and operational ground for 2013. We raised new debt and equity that has enabled us to accelerate our work programmes, signed long-term rig contracts, installed the Bualuang Bravo platform and matured the prospect inventory ahead of an extensive exploration drilling programme. In 2013, we are looking forward to production growth, rising cash flows and a multi well-exploration programme that offers shareholders exposure to multiple catalysts across the full E&P cycle.”

Full Year Results

14 March 2013

Salamander Energy announces its full year results for the year ended 31st December 2012.

  • Revenue of $368.0 million (2011: $408.0 million)
  • Profit before tax of $10.8 million (2011: $112.6 million)
  • Pre-tax operating cash flow of $255.7 million (2011: $296.0 million)
  • Post-tax operating cash flow per boe of $40.22/boe (2011: $28.56/boe)
  • $212 million rights issue completed to fund accelerated work programme
  • Completed $350 million debt refinancing, reflecting reserve upgrades during 2011
  • Year-end net debt of $194.6 million (2010: $210.1 million)
  • Year-end cash and fund balances of $208.8 million (2010: $85.8 million)
  • Bualuang Bravo platform successfully installed on time and budget, cost saving initiative on schedule
  • 16 well development drilling campaign on-going, current field production 11,500 bpd
  • Over 30 targets identified from 3D in G4/50, first 9 matured to drill ready status, with 3 high graded for H1 2013 drilling
  • North Kutei exploration campaign yields oil and gas discovery in first well, second prospect currently drilling
  • Strategic partner secured for Greater Kerendan area, field development on track
  • Average daily production of 10,800 boepd (2011: 18,600), down year on year following the sale of non-core assets in 2H 2011
  • 2013 average Group daily production rate forecast to be 12,500-15,500 boepd
  • G4/50 exploration drilling planned for 2Q 2013, Atwood Mako on contract until 3Q 2014
  • Further North Kutei drilling – Bedug well to follow North Kendang
  • Kerendan exploration drilling to commence in 2Q 2013
  • Kerendan field on-stream mid-2014
  • New acreage award in Greater Kerendan anticipated 1H 2013
KPI 2011 2010 Comment Outlook
Working Interest Production (boepd) 18,600 20,300 Lower year-on-year production following the sale of interests in the ONWJ and SES PSC’s during 2H 2011. Production in 2012 is expected to average 12,000-13,000 boepd. Production is forecast to rise to over 20,000 boepd in 2014.
Finding, Development & Acquisition Cost per barrel (3 yr average) ($ 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 7432 2680

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