Salamander sees production spurt from Thai gusher

Production growth gushed up at Salamander Energy as first oil flowed from its key Thai offshore development.

Production growth gushed up at Salamander Energy as first oil flowed from its key Thai offshore development.

However, the North Kendang follow-up exploration project in Indonesia has been suspended due to equipment constraints from unexpectedly high pressures.

The company said it remained encouraged by the results from North Kendang, but would require time to source and import necessary pressure-handling equipment or an entirely new rig.

Across the whole group 17,100 barrels of oil per day were produced in May, up from an average of 10,800 the previous year, as a new platform at the Bualuang field offshore Thailand was installed and led to a sharp rise in production.

In the year to April 30th production across the group has averaged 14,100 barrels of oil equivalent, and the company continues to maintain its guidance of 12,500-15,500 group annual average daily production.

The principal driver of the Bualuang production increase was eight development wells were brought on stream from the new 'Bravo' platform, which performed well ahead of expectations, with average daily production from this field alone in the year to date from the field being 11,300 barrels per day, and 14,300 in May.

Salamander, which continues to try and reduce long-term costs with new support facilities in the area, will now move Bravo to drill exploration wells on the nearby 'G4/50' block, where it has identified more than 60 prospects and leads.

In Indonesia, apart from the North Kendang hold-up there was an encouraging start to exploration at North Kutei offshore, with an oil and gas discovery that flowed at 6,000 barrels of oil per day on test, while four development wells were completed at the onshore Kerendan gas field and flowed at a higher level than required for its initial gas sales agreement.

Results are also due imminently from the Bedug-1 exploration drilling programme in the Bontang PSC Indonesia.

The group's acreage position increased over sevenfold in the period, with two new licenses signed in Greater Kerendan area.

Shares in Salamander Energy were up 0.6% at 196.4p at 08:50 on Monday.

OH

Recommended

Marks & Spencer shares look cheap – should you buy in?
Retail stocks

Marks & Spencer shares look cheap – should you buy in?

Marks & Spencer shares have been a disappointment for investors for two decades. But with the company now on something of a comeback, Rupert Hargreave…
25 May 2022
The Federal Reserve wants markets to fall – here’s what that means for investors
Stockmarkets

The Federal Reserve wants markets to fall – here’s what that means for investors

The Federal Reserve’s primary mandate is to keep inflation down, and lower asset prices help with that. So, asks Dominic Frisby – just how low will st…
25 May 2022
Four high-quality US stocks to give shelter from the storm
Share tips

Four high-quality US stocks to give shelter from the storm

Professional investor Timothy Parton of the JPMorgan American Investment Trust picks four solid US stocks to buy now.
24 May 2022
Three undervalued mid-cap stocks with attractive prospects
Share tips

Three undervalued mid-cap stocks with attractive prospects

Professional investor Katen Patel of the JPMorgan Mid Cap Investment Trust picks three fast-growing mid-cap stocks to buy now.
24 May 2022

Most Popular

The world’s hottest housing markets are faltering – is the UK next?
House prices

The world’s hottest housing markets are faltering – is the UK next?

As interest rates rise, house prices in the world’s most overpriced markets are starting to fall. The UK’s turn will come, says John Stepek. But will …
23 May 2022
The Federal Reserve wants markets to fall – here’s what that means for investors
Stockmarkets

The Federal Reserve wants markets to fall – here’s what that means for investors

The Federal Reserve’s primary mandate is to keep inflation down, and lower asset prices help with that. So, asks Dominic Frisby – just how low will st…
25 May 2022
Should you be worried about energy windfall tax proposals?
Energy

Should you be worried about energy windfall tax proposals?

Calls have been growing for a windfall tax on UK oil and gas producers. It's a popular idea, but is it a good one? And what does it mean for investors…
24 May 2022