Salamander Energy has signed a contract for the construction of its Bualuang Bravo Platform in Thailand. It is also hoping to complete imminently arrangements for a new debt facility.
The Group’s producing assets have performed broadly to plan. During 1Q 2011 production averaged 19,434 bopd. The Group reiterates its average production forecast for 2011 of 22-23,000 bopd. The current development drilling programme on the Bualuang oil field, Gulf of Thailand, incorporating six development wells, will drive increased volumes in the second half of the year.
During the first quarter the Group announced a reserves upgrade on the Bualuang field adding a further 7 MMbo of proved and probable (“2P”) reserves which take the ultimately recoverable 2P reserves on the Bualuang field to 33.5 MMbo. It has also awarded the contract for the Bravo Wellhead Platform, to be delivered and installed in mid-2012. This will be a 16 slot platform and further development drilling from the Bravo platform in H2 2012 will see production from the Bualuang field increase to 15,000 bopd in 2013.
A Gas Sales Agreement for the Kerendan gas field, Bangkanai PSC, Onshore Kalimantan has been agreed and is awaiting signature. This will see the commercialisation of circa 135 Bcf of gas at a price in excess of $4.50 per Mcf.
The company says that through a combination of higher than expected commodity prices, a growing production base and the expected refinancing of its debt facility the Group’s solid financial position has been further strengthened.
Operationally the focus is on delivering the 2011 exploration and appraisal programme that combines a mixture of low risk, high value wells with higher impact drilling in both Vietnam and Indonesia with the Angklung follow up wells in Bontang and SE Sangatta PSCs.