Salamander Energy looks for a buyer

May 02, 2014 - 12:00:00 am

London: Salamander Energy Plc is considering selling itself and has opened talks with “a small number” of potential buyers, the company said yesterday, sending its shares up 16 percent to their highest in almost a year.

Salamander, which produces oil and gas in Thailand and Indonesia, said it had appointed Goldman Sachs International as financial adviser to conduct the formal sale process. It declined to identify the parties with which it is in talks.

The company, co-founded in 2005 by its current CEO James Menzies, said it had been considering selling minority interests in its Bualuang oilfield in the Gulf of Thailand and its Kerendan gas field in Indonesia’s Central Kalimantan province.

In addition to attracting interest in these assets, Salamander said it had received “a small number of preliminary and conditional approaches” for its entire share capital. 

Salamander’s London-listed shares have lost more than a quarter of their value over the past year, weighed down by some disappointing exploration results.

The company’s average daily production, nevertheless, rose by almost a third last year to 14,200 barrels of oil equivalent. Pretax profit for the year ended December 31, 2013 more than quadrupled to $47.3m.