Production growth in its Bualuang field helped boost British oil group Salamander Energy’s half-year revenues.
The company saw output on the field, off the coast of Thailand, rise ahead of expectations with average production of 12,100 barrels per day – almost double the previous year’s output.
The total contributed to a 39% average daily production increase for Salamander, which is focused on South East Asia.
“We have seen significant growth in daily production during the first half and, when combined with our financial management strategy, this has driven an exceptional increase in cash flow on both an absolute and unit basis,” said chief executive James Menzies.
“Development drilling on Bualuang has highlighted the potential of the reservoirs outside of the main T4, increasing the STOIIP and pointing to possible future resource and reserve growth.
“Our exploration drilling has further de-risked some of our key plays and the portfolio continues to offer material upside through the drill bit and at a materially lower cost than in the first half of 2013.”
The company said it was eyeing expansion into Malaysia as the next major step in the region.
Salamander said it had to write off $108.6million in historic drilling costs, leaving it with a pre-tax profit of $15.9million, though revenues grew 19% to $214.3million year on year.
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