Press releases

Interim Management Statement

17 May 2012

Salamander Energy plc issues the following Interim Management Statement for the period from 1 January 2012 to 16 May 2012.


  • 2012 average production forecast maintained at 12-13,000 boepd
  • Producing assets performance in line with expectations
  • Ensco-53 rig currently drilling in block B8/38, a short programme of development and exploration drilling in and around Bualuang field expected to be completed by end June 2012
  • Tutung Alpha-3 well drilling ahead in Bontang PSC, Indonesia
  • Rig procurement programme
    • Atwood Mako rig signed on a long term contract for drilling in the Gulf of Thailand
    • Negotiations at an advanced stage for a semi-submersible rig for North Kutei drilling
  • Announced $212 million fully underwritten rights issue with dealings in the new Ordinary Shares (fully paid) to commence today

Exploration and Appraisal


The Group completed one appraisal well during the period, the Dong Mun-3 well in block L27/43, Northeast Thailand. The well flow tested at a rate of 15 MMscfd and has been suspended as a future producer. The Operator is now preparing to file for commerciality.

Offshore in block B8/38 in the Gulf of Thailand, development drilling with the Ensco-53 rig on the Bualuang platform is underway and the Bualuang Far East prospect will be tested as part of the current drilling campaign.

In Block G4/50, surrounding the B8/38, the Group completed a 3D seismic survey in 1Q 2012 and has identified over 25 prospect and lead areas. Interpretation of the 3D data is ongoing and the prospects will be firmed up ahead of planned exploration drilling commencing in 2H 2012.


The Group has continued its technical analysis of the North Kutei basin and has mapped approximately 20 leads and prospects. ISIS Petroleum Consultants have completed an independent assessment of the resource potential in the North Kutei basin and estimate that the four most mature prospects contain gross mean unrisked prospective resource of 676 MMboe (534 MMboe net to Salamander). The Group is part of a consortium that is negotiating an LOI for the Ocean General semi-submersible rig and expects to drill four prospects on its acreage in this basin starting in 4Q 2012.

Also on the Bontang PSC, the Group is currently drilling the Tutung Alpha-3 appraisal well on its Tutung gas condensate discovery.

Production and Development

The Group’s producing assets have performed broadly to plan. Production for the four months up to end April 2012 averaged 10,308 boepd. The Group re-iterates its average production forecast for 2012 of 12-13,000 bopd.

In Thailand, the construction of the Group’s Bualuang Bravo Well-head Platform continued to schedule during the period, and is expected for delivery and installation during the third quarter of 2012. The current development drilling programme, together with an extended development drilling campaign from the new platform planned for later in the year is expected to drive increased volumes from the Bualuang field in the second half of the year. The Group has signed a 12 month extendable contract for the new build Atwood Mako jack up rig. The rig is expected to be ready for mobilisation to the Greater Bualuang area in 3Q 2012.

During the first quarter the Group reported its year-end 2011 proved and probable (“2P”) reserves position, which included an upgrade of 2 MMbo in the main Bualuang field and an addition of 8 MMbo from the East Terrace discovery.

The Group made its first reserve bookings on the Kerendan field with 19.0 MMboe of 2P reserves being booked at year end 2011. The DrillCo-1 land rig is currently being mobilised to the Kerendan field and is expected to be fully rigged up on location during June 2012. It will complete a development drilling programme on the Kerendan field consisting of three wells. Meanwhile, the gas processing facilities have received Indonesian government approval and are planned to be constructed ready to deliver first gas during 2013.

Balance Sheet

On 27 April 2012 the Group announced a $212 million rights issue with the new Ordinary Shares to start trading (fully paid) today.

At 30 April 2012, total Group debt (prior to receipt of funds from the Rights Issue), including the $100 million convertible bond, was $276 million, total available funds were $69.4 million, and net debt (including the convertible bond) was $206.6million.

Directorate Change

As announced on 24 January 2012, the Group appointed Dr Carol Bell as a non-executive Director. Carol enjoyed a successful career in the City, as a Managing Director of Chase Manhattan Bank’s Global Oil & Gas Group, Head of European Equity Research at JP Morgan and several years as an equity research analyst in the oil and gas sector at Credit Suisse First Boston and UBS Phillips & Drew.



Salamander Energy
James Menzies, Chief Executive Officer
Geoff Callow, Head of Corporate Affairs
+ 44 (0)20 7432 2680

Brunswick Group
Patrick Handley
Fiona Micallef-Eynaud
+44 (0)20 7404 5959


About Salamander

Salamander Energy is an independent upstream oil and gas exploration and production company listed on the main market of the London Stock Exchange (Ticker: SMDR) and is a constituent of the FTSE 250 index. The Group is focused on growth assets in and around three core areas: Greater Bualuang, Gulf of Thailand; North Kutei, Indonesia; and Greater Kerendan, Indonesia. In each of these areas the Group has a material, operated position and a detailed understanding of the petroleum systems of the basin.



Some of the statements in this document include forward-looking statements which reflect the Group's or, as applicable, the directors' of Salamander (the "Directors") current views with respect to financial performance, business strategy, plans and objectives of management for future operations (including development plans relating to the Group's exploration and production). These statements include forward-looking statements both with respect to the Group and the sectors and industries in which the Group operates. Statements which include the words "expects", "intends", "plans", "believes", "projects", "anticipates", "will", "targets", "aims", "may", "would", "could", "continue", their negative variations and similar statements of a future or forward-looking nature identify forward-looking statements for the purposes of the U.S. federal securities laws or otherwise. All forward-looking statements address matters that involve risks and uncertainties many of which are beyond the control of the Group. Accordingly, there are or will be important factors that could cause the Group's actual results to differ materially from those indicated in these statements. These factors include but are not limited to the following factors: declines in oil or gas prices; energy demand in South-East Asia; accuracy of the estimates of the Group's reserves and resources; the Group's ability to implement successfully any of its business strategies; the Group's ability to fund its future operations and capital needs through borrowing or otherwise; outcome of the exploration activities; increased operating costs; the Group's ability to obtain necessary regulatory approvals; competition in the markets where the Group operates; changes in tax rates; changes in accounting standards or practices; inflation and fluctuations in exchange rates; the impact of general business and global economic conditions; changes in political, economic, legal or social conditions in Thailand, Indonesia, Vietnam or Laos; changes in the policies of the governments of Thailand, Indonesia, Vietnam or Laos; and the Group's success in identifying other risks relating to its business and managing the risks relating to the aforementioned factors.

Any forward-looking statements in this document reflect the Group's or, as applicable, the Directors' current views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to the Group's business, results of operations and growth strategy. Each forward-looking statement speaks only as of the date of this document. Subject to any obligations under applicable law, rules and regulations, neither Salamander nor the Directors undertakes any obligation to publicly update or review any forward-looking statement or other information contained in this document whether as a result of new information, future developments or otherwise. All subsequent written and oral forward-looking statements attributable to the Group or individuals acting on behalf of the Group are expressly qualified in their entirety by this paragraph.