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

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
6 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
2 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

NS&I brings back one-year fixed bonds with highest rates since 2010
Personal finance

NS&I brings back one-year fixed bonds with highest rates since 2010

NS&I’s one-year fixed bonds are back on sale after being pulled off the market in 2019 - but is the rate any good?
1 Feb 2023
How to invest like an ISA millionaire
Investments

How to invest like an ISA millionaire

We reveal the top funds and trusts ISA millionaires pumped their money into
6 Feb 2023
The best one-year fixed savings accounts - February 2023
Savings

The best one-year fixed savings accounts - February 2023

Earn almost 5% on one-year fixed savings accounts.
6 Feb 2023