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Friday, 21 November, 2008, 22:40 GMT | more >>

Salamander primed for cash push



By Upstream staff 

South-east Asia-focused explorer Salamander is planning to spend between $65 million and $70 million this year, company boss James Menzies said today.

The company had built up a balance sheet with $127.3 million of cash by the end of 2006, but Menzies told Reuters that over half of it would be spent on exploration and appraisal drilling across the region this year.

"We want to spend around $35 million on exploration and $20-25 million on appraisal drilling," he said in a telephone interview.

But he gave assurance that the company would not have to come back to the market for more cash despite the outlay, noting that a debt facility and production revenues would be adequate.

"We have enough for 2007, 2008 and beyond," he said, adding management could see opportunities across Indonesia, Thailand and Vietnam for the company to double or even treble in size.

He said the company's plans for the year included further appraisals in assets in Thailand, Indonesia and Vietnam, while 2008 would be more focused on wildcat exploration.

Salamander - which was founded two years ago and floated in November - reported 2006 pretax losses of $14.5 million, down from $19.1 million a year earlier, but Menzies said the deficit was largely down to costs related to the IPO.

"We will be in positive territory this year or next ... we hope to break even this year," he said.

The group's year end production, generated mainly from its flagship Phu Horm field in northern Thailand, was 7.5 million barrels per day, up from a year average of 4.4 million.


Monday, 26 March, 2007, 08:46 GMT  | last updated: Monday, 26 March, 2007, 12:51 GMT

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