Salamander Energy, an independent upstream oil and gas exploration and production company focused on Asia, announces its half year results for the six months ended 30 June 2010.
HIGHLIGHTS
FINANCIAL
* Revenue up by 73% to $133.5 million (1H’09: $77.2 million)
* Operating cashflow up by 56% to $63.2 million (1H ’09: $40.5 million)
* Pre-tax loss of $90.3 million (1H’09: loss of $5.8 million)
* Pre-tax profit of $11.8 million (1H’09: loss of $5.8 million) adjusting for non cash items1
* Funds as at 30 June of $168.8 million (FY ’09: $59.2 million)2
* Net debt at 30 June of $98.2 million (FY ’09: $119.3 million)
* Raised $100 million convertible bond issue
OPERATIONAL
* Average production increased by 25% to 16,000 boepd3(1H’09: 12,800 boepd); current daily production c. 20,000 boepd
* Completion of Phase IV of development drilling in Bualuang oil field
* Kambuna gas-condensate field reached full DCQ production
* Maintained excellent track record in HSE
* Deepened and broadened portfolio through increasing interest in Bontang PSC and Bengara-1 PSC, and with entry into block 101-100/04 in Vietnam
OUTLOOK
* Expect to complete acquisition of additional 40% interest in B8/38 licence in September 2010, taking interest to 100%
* On a proforma basis for the B8/38 acquisition average daily production in 2010 forecast to be over 20,000 boepd
* Further development of current portfolio forecast to deliver production of 30,000 boepd during 2013
* 2H 2010 drilling programme targeting 270 MMboe of net unrisked resource, 66 MMboe of net risked resource, in producing basins
* Fully funded exploration and appraisal programme
Commenting on the results, Salamander’s Chairman Charles Jamieson said:
“The first half of the year has been a busy period for Salamander, during which the group grew production, revenue and cash flow, secured funding for continued portfolio expansion and negotiated a major acquisition increasing our interest in a key asset we know well. While there were some drilling disappointments during the half year, the focus in the second half is on lower-risk prospects in producing basins and the Board is confident that Salamander is well positioned and fully funded to deliver further growth.”
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Source: Salamander energy, August 26, 2010: