Strong response to Salamander rights issue

published 17 May 2012

Salamander Energy, an upstream oil and gas exploration and production company, has maintained production guidance for the current year.

The group is sticking with its average production forecast of 12-13,000 barrels of oil equivalent per day (boepd) for the current year, down from 18,600 boepd in 2011 and 20,300 boepd in 2010. The group said that production assets have performed in line with expectations in the year to date. Production for the four months up to end April averaged 10,308 boepd.

In Thailand, the Ensco-53 rig is currently drilling in block B8/38 as part of a short programme of development and exploration drilling, which is set to be completed by the end of June this year.

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In Block G4/50, surrounding the B8/38, the group completed a 3D seismic survey and has identified over 25 prospect and lead areas, the interpretation of which is ongoing.

In Indonesia, the Tutung Alpha-3 well is drilling ahead on the firm's Tutung gas condensate discovery. The group is continuing its technical of the North Kutei basin and has mapped approximately 20 leads and prospects.

At April 30th, total group debt, including a $100m convertible bond, was $276m, total available funds were $69.4m, and net debt (including the convertible bond) was $206.6m. The above figures exclude receipts from the rights issue announced on April 27th.

The company said the fully underwritten 13 for 20 rights issue of shares at 130p each received a 97.71% take-up. The shares not taken up by Salamander shareholders were successfully placed in the market at 162.1p each.

The share price rose 3.58% to 167.90p by 08:59.