Salamander Energy buys Mitra Energia from Sound Oil

Salamander Energy, the FTSE 250 oil and gas group, has agreed to acquire the share capital of Mitra Energia Bangkanai from AIM-listed group Sound Oil.

Salamander Energy, the FTSE 250 oil and gas group, has agreed to acquire the share capital of Mitra Energia Bangkanai from AIM-listed group Sound Oil.

Mitra has a five per cent holding in the Bangkanai production sharing contract (PSC), located in Indonesia, boosting its stake in the licence to 85 per cent.

Following the purchase, Salamander's proved reserves will increase by 1.2m barrels of oil equivalent (boe), while contingent resources net to the group will increase by 1.6m boe.

The consideration for Mitra is comprised of an initial $4.5m cash payment, a further conditional payment of $1.1m cash, and a contingent payment of $1.5m from revenues associated with production from a future discovery in the PSC.

The PSC contains the Kerendan gas field which is undergoing development and is expected to be on stream in 2014.

To date, 122.6bn cubic feet have been committed for sale under a gas sales agreement and a further 160bn cubic feet of resource has been identified in the field for further commercialisation.

The share price rose 0.58% to 173.30p by 09:25.

NR

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
IAG's share price is ready for take-off - here's how to play it
Trading

IAG's share price is ready for take-off - here's how to play it

The owner of British Airways has had a turbulent year, but is now worth a punt. Matthew Partridge explains the best way to play it.
8 Sep 2020