Asia-focused explorer Salamander Energy has signed a definitive share sale and purchase agreement for 40% working interest in its two Gulf of Thailand concessions with Sona Petroleum Berhard.
The sale of the shares in the blocks B8/38 and G4/50, containing the Bualuang oil field, producing at an average daily rate of between 11,000 and 14,000 barrels of oil, was previously set out in a heads of agreement with Sona, in May this year.
Sona will pay a consideration of $280million in cash plus working capital adjustments based on the effective date of 1 January 2014.
While Salamander will pay for the costs associated with the drilling of two exploration wells in the G4/50 concession, capped at $15million.
“Since increasing our stake in the field in 2010, Bualuang has produced over 10million barrels of oil and generated significant cash flow,” said James Menzies, Salamander Energy’s chief executive.
“This deal demonstrates that during that time, Salamander has 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.
“Meanwhile, we are looking forward to both the continued development of the field and the exploration of the G4/50 concession together with our new partner.”
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