Salamander Energy announces its half year results for the six months ended 30 June 2013.

HIGHLIGHTS

FINANCIAL

• Revenue up 19% to $214.3 million (1H 2012: $ 179.4 million)
• Pre-tax operating cash flow¹ up 87% to $182.7 million (1H 2012: $97.7 million)
• Post-tax operating cash flow rose 149% to $100.4 million (1H 2012: $40.4 million)
• Pre-tax profit of $15.9 million (1H 2012: $15.9 million), rising to $124.6 million (1H 2012: $41.8 million) when adjusted for expensed exploration costs
• Unit operating costs fell 22% to $14.37 per boe (1H 2012: $18.39 per boe)
• Net debt as at 30 June of $258.2 million (FY 2012: $ 194.6 million) with cash and funds of $166.8 million (FY 2012: $208.8 million)

OPERATIONAL

• Average daily production up 39% to 14,900 boepd (1H 2012: 10,700 boepd)
• Development drilling on Bualuang field ahead of expectations; production averaged 12,100 bopd (1H 2012: 6,900 bopd)
• Kerendan development drilling complete, wells delivered a combined 40 MMscfd on test
• Strategic partner brought in to the Bangkanai PSC in return for a cash payment, carry on development expenditure and promote on exploration wells
• Kutei exploration drilling yielded South Kecapi oil and gas discovery and North Kendang gas discovery ; North Kendang re-drill to be completed before end 1Q 2014
• Surin oil discovery in G4/50, Gulf of Thailand, de-risking neighbouring leads and prospects

OUTLOOK

• Full year 2013 average daily production forecast maintained at 12,500 – 15,500 boepd
• Further development drilling in Greater Bualuang during 2H 2013
• Exploration drilling in G4/50 and Bangkanai PSC during 3Q/4Q 2013
• Completed farm down of West Bangkanai PSC, Greater Kerendan to strategic partner Saka Energi
• Awarded PSC in Malaysia, negotiating terms ahead of expected signature in 4Q 2013

¹ Before working capital adjustments

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

“We have seen significant growth in daily production during the first half and, when combined with our financial management strategy, this has driven an exceptional increase in cash flow on both an absolute and unit basis. Development drilling on Bualuang has highlighted the potential of the reservoirs outside of the main T4, increasing the STOIIP and pointing to possible future resource and reserve growth.

Our exploration drilling has further de-risked some of our key plays and the portfolio continues to offer material upside through the drill bit and at a materially lower cost than in the first half of 2013. Finally, with an eye on the longer term, we are adding new acreage to the portfolio, and in particular we see entry to Malaysia an important step for the Company.”

 

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     
Elizabeth Adams