Half Year Financial Results For the six months ended 30 June 2012

Salamander Energy announces its half year results for the six months ended 30 June 2012.

HIGHLIGHTS

FINANCIAL

• Revenue of $179.4 million (1H 2011: $ 187.7 million)
• Pre-tax operating cashflow¹ of $97.7 million (1H 2011: $137.0 million)
• Pre-tax profit of $15.9 million (1H 2011: $62.4 million)
• Successfully completed $212 million (gross) rights issue to accelerate exploration drilling and invest in facilities to reduce costs on main producing asset
• Net debt as at 30 June of $82.5 million (FY 2011: $210.1 million) with cash and funds of $206.0 million (FY 2011: $85.8 million)

OPERATIONAL

• Average daily production of 10,700 boepd (1H 2011: 19,600 boepd) following disposal of low margin production in 2H 2011
• Successful appraisal of Tutung and Dong Mun discoveries; now focused on development plans
• Ocean General rig contracted for exploration programme in North Kutei to commence 4Q 2012
• DrillCo-1 rig mobilised to Kerendan field, commenced development drilling in 3Q 2012
• Atwood Mako rig mobilising to Gulf of Thailand, drilling will commence September 2012
• Construction of Bualuang Bravo Platform completed on time and to budget, installation scheduled for October 2012
• G4/50 seismic completed, prospect sizes exceeding initial expectations

OUTLOOK

• Full year 2012 average daily production forecast 10,500-11,500 boepd
• Development drilling in Greater Bualuang and Greater Kerendan during 2H 2012 to drive future production growth
• Commencing exploration drilling in Greater Bualuang and North Kutei in 2H 2012
• 1H 2013 exploration drilling in all core areas, Greater Bualuang, Greater Kerendan, North Kutei

¹ Before working capital adjustments

Commenting on the results, James Menzies, Chief Executive, said:

“We are pleased with progress made in the first half of 2012 and are looking forward to a lively operational period over the remainder of the year which will include drilling in all three of our core areas. Whilst the spotlight will be firmly on the exploration drilling over the next 12 months, we also expect to deliver production growth and cost reductions through 2013 and 2014. Overall the Group is now well positioned to offer shareholders exposure to a balanced, and potentially transformational, work programme.”

 

Enquiries:

Salamander Energy
020 7432 2680
James Menzies, Chief Executive Officer     
Geoff Callow, Head of Corporate Affairs     
      
Brunswick Group LLP     
020 7404 5959
Patrick Handley     
Fiona Micallef-Eynaud