London-listed Salamander Energy has announced a rights issue to raise about $201 million to provide funding for its operations in Thailand and Indonesia.
Salamander said it would issue up to more than 100.6 million new ordinary shares in the 13 for 20 rights issue at a price of 130 pence ($0.21) each which was a 49% discount to the closing price of 256.1 pence per share on Thursday.
Salamander said it planned to use the money raised to fund the enhancement of the Bualuang oilfield in the Gulf of Thailand through the addition of platform-based oil processing facilities which it believes will reduce operating costs, extend the economic field life and potentially increase output.
It will also use the proceeds to contract a second rig to accelerate exploration and appraisal drilling in the Gulf of Thailand and to fund its exploration drilling programme in Indonesia’s North Kutei basin.
“During 2011 Salamander Energy refocused its portfolio on three core areas where it has large, operated interests with material upside exposure and high quality, anchor assets,” Salamander chief executive James Menzies said in a statement on Friday.
“The rights issue provides us with the additional capital to accelerate our drilling programme around these assets and to aggressively pursue the opportunities they present. “
Salamander said the rights issue had been fully underwritten by Goldman Sachs International, Oriel Securities and RBC Capital Markets, while Rothschild was acting as financial adviser to the company.