Salamander Energy Plc (LON:SMDR) released several announcements today, revealing their robust 2009 results, their plans to launch a convertible bond - the proceeds of which will fund the expansion of their Asia portfolio - and their imminent acquisition of a 50% stake in an offshore Vietnamese prospect.
Annual results for the oil and gas exploration and production company were strong for 2009, the report said. Production output was up 42%, reaching 13,600 barrels per day. Successful drilling projects included the Bualuana and South Sebuku prospects, and first gas was detected on the Kambuna field, offshore Sumatra. The company plan to develop the approved South Sembakung field in Indonesia, and are currently ready to start drilling a 12 well exploration program for 2010.
Financials were as robust as operations, with revenue increasing by 56% to $157.1 million, in comparison to a total of $100.8m in 2008). Pre tax loss was $3m, a sharp gain on the 2008 figure of $75.5 million. Net debt at year end is $115.4 million.
Going forward, the company anticipate daily production rate to rise to between 17,000 and 18,000 barrels a day. The scheduled 12 well exploration program is expected to produce 340MMboe of net unranked resource. The board are also looking to substantially grow and diversify their Asian portfolio. To do this, they announced the launch of a convertible bond, of a value of approximately US$85 million, which may be increased to US$100 million in the event the increase option is exercised in full. The report said settlement and delivery of the bonds is expected to be at the latest by 30th March 2010.
CEO of Salamander, James Menzies, commented:
"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."
The company also announced it would be acquiring 50% interest in Block 101-100/04 from Santos Vietnam and Singapore Petroleum Vietnam Song…
