Salamander approaches profitability

Asia-focused oil and gas group Salamander moved close to profit in 2009 as it ramped up production.

The company, which operates in Indonesia, Thailand and Vietnam, posted a pre-tax loss of $3m, compared with a loss of $75.4m the previous year, as revenues jumped to $157.1m from $100.6m.

Production increased by 42% to 13,600boepd (barrels of oil equivalent per day) and Salamander said it expects 2010 average daily production to be between 17,000 and 18,000boepd. Production has averaged 16,300boepd so far in March, it said.

The company is also active on the exploration front and hopes to tap into rising demand for gas in Asian markets.

'2010 will be a year in which the group carries out a potentially transformational exploration drilling programme and continues to expand its production base,' Salamander said.

'The group will also seek to continue to diversify its portfolio through selective acquisitions and we expect further production and cash flow growth from our existing fields to support continued investment in the group's exploration and appraisal activities.'

Salamander demonstrated its acquisitiveness by separately announcing that it will acquire 50% of Block 101-100/04, a project off the coast of Northern Vietnam from Santos Vietnam and Singapore Petroleum Vietnam Song Hong.

It also announced that it intends to make an offering of about $85m convertible bonds due 2015 to 'allow the group to react promptly to opportunities to broaden and diversify its Asian portfolio.'