Press releases

Annual Results

18 March 2010

Salamander Energy plc, the Asia focussed independent oil and gas exploration and production company, announces its annual results for the year ended 31 December 2009.

HIGHLIGHTS 
OPERATIONS

  • 42% increase in production to 13,600 boepd
  • First gas from the operated Kambuna field, Offshore North Sumatra
  • Successful exploration drilling on Bualuang deep and South Sebuku prospects
  • Plan of development approved for South Sembakung field, Indonesia
  • Progressed to drill-ready status 12 well exploration programme for 2010

FINANCIALS

  • Revenue increased by 56% to $157.1 million (2008: $100.8 million)
  • EBITDAX increased by 64% to $87.6 million (2008: $53.3 million)
  • Pre - tax loss of $3.0 million (2008: $75.5 million)
  • Year end funds balance of $59.2 million (2008: $115.1 million) (including restricted bank deposits of $11.4 million (2008: $12.1 million), net debt of $115.4 million
  • (2008: $41.9 million)

OUTLOOK

  • 2010 average daily production rate anticipated to be 17,000 – 18,000 boepd
  • Active 2010 drilling programme of 12 E&A wells targeting 340 MMboe of net unrisked resource (75 MMboe of net risked resource)
  • Currently drilling Bang Nouan-1 exploration well in Lao PDR
  • Asian gas markets continue to develop with attractive medium and long term demand dynamics
  • Announced separately today launch of a Convertible Bond, proceeds of which will be used to broaden and diversify Asian portfolio
  • Agreement to acquire 50% interest and operatorship of Block 101-100/04, Offshore Northern Vietnam

James Menzies, Chief Executive, Salamander, said:

“2009 was a year of successful consolidation for Salamander. We achieved strong growth in production, progressed and brought to pre-drill status our 2010 exploration programme and secured Origin as a strategic partner.
While our operational attention is focused on the current exploration efforts, we also see encouraging opportunities emerging across the Asian region. The asset market is increasingly busy and opportunities, for committed focused independents, are attractive. We look forward to making further material steps in the Group’s development during 2010.”

Enquiries:

Salamander Energy plc            020 7960 1580
James Menzies, Chief Executive Officer 
Geoff Callow, Head of Corporate Affairs

Brunswick Group LLP            020 7404 5959
Patrick Handley
Fiona Mulcahy

 

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