Asia-focused Salamander Energy has taken down its ‘For Sale’ sign after sealing a $280 million farm-in on its key asset, the Bualuang oilfield off Thailand.
As Upstream first reported in June, the UK-listed explorer gained Sona Petroleum of Malaysia as a 40% interest holder on the producing field and exploration targets in the wider B8/38 concession.
Salamander Energy chief executive said that since acquiring the field from Japan’s Mitsui in 2010, development had by the company had “more than doubled the value of the field under its stewardship against a flat commodity price”.
“Partially crystallising that value now allows us to significantly strengthen the balance sheet and return capital to shareholders while retaining a majority interest in, and operatorship of the field,” he said.
The Gulf of Thailand field produced an average of 12,300 barrels per day of oil last year and holds estimated gross proven and probable reserves of 32.7 million barrels.
Salamander Energy had entered a formal sale process in May in order to confidentially consider potential offers for assets and the whole company, but it has now decided to exit the process and continue without a sale.
Shares in the company were trading down around 4% at £1.21 on the London Stock Exchange following the announcement.