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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
-
Coventry Building Society bids £780m for Co-operative Bank - what could it mean for customers?Coventry Building Society has put in an offer of £780 million to buy Co-operative Bank. When will the potential deal happen and what could it mean for customers?
-
Review: Three magnificent Beachcomber resorts in MauritiusMoneyWeek Travel Ruth Emery explores the Indian Ocean island from Beachcomber resorts Shandrani, Trou aux Biches and Paradis
