Bloomberg News

Salamander Seeks Partner for Indonesian Oil Field, CEO Says

March 26, 2012

Salamander Energy Plc (SMDR), a U.K. oil and gas producer in Southeast Asia, is seeking an exploration partner at Indonesia’s North Kutei field as it hunts for resources to counter a decline in output.

The company plans to drill as many as eight wells in the North Kutei area starting in the fourth quarter, Chief Executive Officer James Menzies said today in a telephone interview. It “would like to bring a partner into the acreage” and is in “active discussions,” he said, declining to name any parties.

Salamander expects production to fall to as low as 12,000 barrels of oil equivalent a day this year from 18,600 barrels a day, after selling assets in 2011. Output may rise to about 20,000 barrels a day in 2014 as the company taps Indonesia’s North Kutei and Greater Kerendan regions, and the Greater Bualuang area in the Gulf of Thailand.

Production at Bualuang is “very supportive of the underlying cash flows” as production falls off, Chief Financial Officer Jonathan Copus said today by phone.

The North Kutei field holds 676 million barrels of oil equivalent resources, London-based Salamander said earlier in a statement. The area has “very big prospects,” Menzies said, adding that the company may sell further “non-core” assets in the north of Sumatra and northeast Thailand.

Capital expenditure will increase by 13 percent to $225 million this year.

To contact the reporter on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net

To contact the editor responsible for this story: Stephen Cunningham at scunningha10@bloomberg.net


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