Salamander Energy plc, the Asia-focused independent oil and gas exploration and production company, announces preliminary results for the year ended 31 December 2008.

HIGHLIGHTS 
2008 OPERATIONS

• Proved and probable reserves increased by 74% to 67.7 MMboe, a 950% reserves replacement ratio
• Production increased by 23% to 9,600 boepd
• First oil from the operated Bualuang oil field, Gulf of Thailand
• Acquired operatorship of the Kambuna development, Offshore North Sumatra
• Continued portfolio development, addition of six new licences

2008 FINANCIAL

• Revenue increased by 45% to $100.8 million
• EBITDAX increased by 37% to $56.8 million
• Post tax loss of $66.5 million (post tax profit of $0.2 million after adjustments for write off and impairment items)
• Average realisations of: oil $60.52/bbl and gas $4.99 Mscf
• Completed $200 million debt refinancing, seven year facility, and $200 million equity raising
• Year end cash balance of $103.0 million, net debt of $54.0 million

2009 OUTLOOK

• 2009 average daily production rate anticipated to be 15,000 – 17,000 boepd
• Group expects to operate over 65% of total production by end of 2009
• Kambuna field development progressing, with first gas scheduled mid-year 2009
• Additional development drilling underway at Bualuang oil field
• Imminent E&A campaign in Indonesia and Thailand
• Strong balance sheet to fund exploration, appraisal and development activities

James Menzies, Chief Executive of Salamander, commented:

“2008 was a year in which we materially increased our reserves and production base. Acquiring first oil from the Bualuang field was an important step for Salamander, as was picking up operatorship of the Kambuna project. Development drilling on these assets has led to substantial reserves additions for the Group.

“Our cash position and balance sheet, which was restructured ahead of the mid-year deterioration in the capital markets, means we are well placed to deliver our work programme, which will see further production and cash flow growth as well as exploration and appraisal drilling in Northeast Thailand, Gulf of Thailand and in East Kalimantan, Indonesia.”

For further information:

Salamander Energy plc  James Menzies, Chief Executive  Geoff Callow, Head of Corporate Affairs	020 7960 1580
Pelham Public Relations  James Henderson  Mark Antelme  Evgeniy Chuikov	020 7337 1513