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




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

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.

Following the recent news,the new 2P reserves figure would amount to 90Mmboe and the new EV/bbl ratio works out at 5.91 (531.75/90) which is a bargain! average should be around 10 so IMHO, SMDR is undervalued and I would not be surprised if this company becomes a takeover target. SP can only move up from here to 400p very soon.

This is still high at 250p.

What about 230 then.

Better wait until next Tuesday should be 200 imho.

Been hitting dry or sub-commercial wells and the sp been hit accordingly...



Salamander Energy plc


Cat Ba-1X Sub-Commercial Oil & Gas Discovery

Salamander Energy announces the completion of the Cat Ba-1X ("101-CB-1X") exploration well in Block 101-100/04, offshore northern Vietnam. Block 101-100/04 was the subject of a farm out as announced on 31st May 2011.

The 101-CB-1X well was drilled to a total depth of 1,724 metres. The well encountered 38 metres of net hydrocarbon pay in Tertiary clastics, the secondary objective of the well. The pay section comprises a series of gas-bearing sandstones underlain by an oil-bearing reservoir. A full suite of wire-line logs and pressure data were recorded over the reservoir sections and samples of oil and gas were recovered.

These data show that the Tertiary reservoirs are of good quality, however pressure data and seismic mapping indicates the in-place resource volumes encountered by the well are probably below levels needed for commercial development.

No oil shows were observed and only low levels of gas were recorded while drilling the primary objective, the Palaeozoic 'buried hills' play. Subsequent wire-line logging did not reveal any zones of interest. The Cat Ba-1X well has subsequently been plugged and abandoned as a sub-commercial discovery.

200p fair value imho

Wow 194p today even better

Where do these guys get their joke figures from a crystal ball.

Goldman Sachs upgrades Salamander Energy from neutral to buy, target price raised from 500p to 515p.

Wow now 175p

Goldman sachs tosspots. 515p lol.

Somtimes makes you wonder how these analyst's come up with their target prices.GS target price is 515 when today's price is under 200p. Has anybody got access to the GS report?

Goldman Sachs can't analyse. Pure dream world they are living in.