Salamander Energy plc announces that it has agreed to acquire the full authorised share capital of Mitra Energia Bangkanai Limited (“Mitra”), which holds a 5% interest in the Bangkanai PSC, from a subsidiary of Sound Oil plc. On completion of the transaction, Salamander will hold an 85% interest in the licence. The transaction will add approximately 1.2 MMboe of proved reserves and 1.6 MMboe of contingent resources net to the Group.
The Mitra interest is carried by Salamander through to first gas and the consideration to acquire it will comprise:
- An initial cash payment of $4.5 million
- A further $1.1 million cash payment conditional on both the commencement of gas production and the signature of a GSA for commercialisation of additional resources
- A contingent payment of $1.5 million from revenues associated with production from a future discovery in the PSC
The Bangkanai PSC is located onshore in central Kalimantan, Indonesia and contains the Kerendan gas field which is undergoing development. To date, 122.6 Bcf has been committed for sale under a Gas Sales Agreement (“GSA”) with PLN and a further 160 Bcf of resource is identified in the field for further commercialisation. The field is expected to be on stream in 2014.
An inventory of prospects and leads in the block will be matured for future drilling, the first of which will be West Kerendan which is due to be drilled early in 2013 following the completion of the development drilling campaign.
Enquiries:
Salamander Energy
+ 44 (0)20 7432 2680
James Menzies, Chief Executive Officer
Geoff Callow, Head of Corporate Affairs
Brunswick Group
+44 (0)20 7404 5959
Patrick Handley
Elizabeth Adams
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.
