Salamander Energy Plc (SMDR), a U.K. oil explorer active in Asia, plans to raise about 124 million pounds ($201 million) for drilling in Thailand and Indonesia.
About $100 million will be used for exploratory drilling in the Gulf of Thailand and to cut costs, Chief Executive Officer James Menzies said in a telephone interview. The remainder will be spent on Indonesian exploration.
Salamander sold assets last year to focus on development and exploration in Indonesia and Thailand. Production may fall to as low as 12,000 barrels of oil equivalent a day this year from 18,600 barrels a day in 2011. Output may rise to about 20,000 barrels a day in 2014 as the London-based company taps Indonesia’s North Kutei and Greater Kerendan regions and the Greater Bualuang area in the Gulf of Thailand.
The rights issue “will knock off $25 million in operating costs” at the company’s Bualuang oil field in Thailand, Menzies said. In North Kutei, Salamander is “looking for a four-well program to begin at the back end of this year, by the end of 2013 we’ll have four wells there,” he said.
Goldman Sachs Group Inc. (GS:US), Oriel Securities Ltd. and RBC Capital Markets fully underwrote the issue, the company said in a statement. Rothschild acted as sole financial adviser to the company. Salamander shares have risen 26 percent this year.
To contact the reporter on this story: Kari Lundgren in London at email@example.com
To contact the editor responsible for this story: Will Kennedy at firstname.lastname@example.org