Drilling for oil/gas in S Asia 2008 could be year for increased production.




http://www.salamander-energy.com/

How much downside on a succession of dusters?
Bit surprised though on the steady recovery of sp.

this was a clubby special, and for some reason he got it absolutely right, but damned if i can see why or how

To be fair he was in for the gusher, which didn't happen, hence 255p down to 215p.
So long as he held on he should be back in the money.

his wife's brothers seem to have got fed up with his local shagging as he has disappeared entirely - he was previously in touch with me via aol

He still posts on ADV.

ah well, that is a place that has no interest or appeal to me at all

Where's clubbie nowadays?

advfn ..... sorry to see that he's picked a stinker, though it was always on the cards

StockMarketWire.com
Salamander Energy, the gas and oil exploration company, has announced that reserves at a well in Indonesia have been found not to be sufficient to be commercial.

The well at the Dambus exploration project at Kutai has been abandoned and plugged. However, exploration at other sites in the area is continuing.

Paul Ellis, chief executive of Serica Energy, which are operating the sites, said that they are confident that hydrocarbons will be found in Kutai as it lies within a prolific petroleum basin.

Still mystifies me how this stock does so well. Almost back up to it's 12 month high again!

ask clubby! ..... he was telling us to pile in at below 2.00 from memory

Watch this go much higher. Lot of Wells being drilled and Bualang East Terrace Well will be spud at the end of Jan with 66% chance of sucess. See todays RNS. With crude price going higher, this will help and improve the cash flow. Everything is +ve going for SMDR.

sorry to be a party pooper but .....

The first will be the Bualuang East Terrace exploration well, now expected to spud at the end of January.
This prospect is estimated to contain a mean 7m barrels of oil, with upside potential of 14 MMbo, and has a 66% chance of success.

that'll barely fill the pipeline to the refinery!

Salamander Energy - SMDR LN - Broker comment:
"SMDR has spudded the Dao Ruang-2 appraisal well onshore Thailand in which it has a 50% stake. Dao Ruang is a discovery from the 1990s made by Texaco with prospective resources of 500 bcf, i.e. a net 42m barrels oil equivalent to SMDR. DR-2 is the first of two back-to-back appraisal wells, with the Chance of Success for each given at 30%, and on rough numbers these could be worth 50-75p/share net to the group, i.e. potentially material. SMDR didn't fare awfully well with the drillbit last year, with only the Angklung discovery in Indonesia. However the group has a busier drilling schedule this year with nine exploration wells planned in Thailand, Indonesia and Vietnam. Our current NAV of 249p/share includes nothing for exploration, hence it may well be worth a punt. "

not exactly a ringing endorsement to buy is it

Based on 2P reserves figure of 66.3Mmboe, SMDR is trading on an EV/bbl of an estimated $8.03 at Sept 10), which in my honest opinion I think looks way too cheap.With the likely hood of Reserves upgrade, the EV/bbl will drop to 5.8.If and when the reserves upgrades comes, IMHO, the SP would equate to at least 424p.

I think SMDR will shoot up to 350 without any problems in the short term and based on Reserves upgrade it can easily shoot up to 424 in the medium to long term. This is based on my own calculations and todays crude price. Please do your own review as this is not a recommendation to buy.

UPDATE- 25/2/11 according to my calculation, now the EV/bbl has dropped to my forcast number of 5.8 and so the SP should now move much faster towards the 400p.

I bought SMDR at 2.15 and feel it will keep going up on results so happy to keep my holding.

Nice rise today 5.43%

Bernard see my above post 648. This share will be another Dana.

Another nice rise today wish I had topped up last week but still have a good chunk.