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




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

Salamander Energy plc

The Board of Salamander Energy Plc notes the recent press speculation and confirms that it has received a conditional proposal from Ophir Energy plc ("Ophir") with respect to a potential offer for the Company, the terms of which Salamander is seeking to clarify. In addition, the Company is also in receipt of an approach from a consortium led by Compañía Española de Petróleos ("CEPSA") and Jynwel Capital (the "CEPSA Consortium"). The Board of Salamander has not received the detail of the CEPSA Consortium's proposal or confirmation that any offer will be forthcoming.

The proposals from Ophir and the CEPSA Consortium are subject to a number of conditions, including due diligence and the receipt of a unanimous recommendation from the Board of Salamander.

The Company is currently in discussions with both Ophir and the CEPSA Consortium in relation to their respective proposals. However, there can be no certainty that any offer will be forthcoming, or as to the terms of any such offer. Accordingly, shareholders are advised to take no action at this time.

StockMarketWire.com
Compania Espanola de Petroleos (CEPSA) noted on behalf of itself and Strategic Energy (Global) Limited (together, CEPSA Consortium) that the announcement made by Salamander Energy on Nov. 14 was made without its consent.

"The CEPSA Consortium continues to consider its position regarding a possible offer for the Company and the terms and conditions of any such offer, including any pre-conditions to making any such offer," it said in a statement.

"The CEPSA Consortium may decide not to proceed with an offer and accordingly there can be no certainty that an offer may be forthcoming. Any offer, if made, could be on different terms to those stated in the announcement of Salamander of 14 November 2014."

Canaccord note:
"CEPSA announced yesterday evening it has terminated talks with Salamander over a possible takeover and is now barred from making another offer within the next 6 months, except under the circumstances set out in Note 2 to Rule 2.8 (eg. if a 3rd party announces a firm intention to make an offer for Salamander).
As we understand it, Ophir is still free to make an offer for SMDR until the ‘put up or shut up’ date of 24 November. However, we do not expect Ophir to offer more attractive terms than the proposed offer previously made by CEPSA (121p/sh cash + up to 24p/sh cash conditional on future exploration success). It would appear to us that if Ophir makes an offer, this could enable CEPSA to come back: however, it is not certain they would.
We expect Salamander stock will fall further today, after falling 6.4% yesterday. Prior to the recent round of takeover discussions, Salamander traded as low as 75p/sh in mid October. Brent crude has fallen a further 6% since that time. In our view, Salamander should not fall to that level immediately as there is still time for a takeover offer to be made by Ophir, or another party.
Valuation
Our 121p/sh target price is set at a modest discount to our 124p/sh Central NAV at US$90/bbl crude, which is about in-line with the recent proposed offer.
Share performance catalyst
Further details of possible takeover offers, or the expiry of the ‘put up or shut up’ deadline on 24th November without a deal.

Operational and Corporate Update

Salamander Energy plc issues the following operational and corporate update that includes unaudited information and may be subject to further review.

Highlights
· 2014 average production of 14,200 boepd
· Bualuang field and the Sinphuhorm field both produced record high annual rates
· Kerendan Gas Processing Facility is nearing completion
· Renegotiations on the Kerendan gas sales agreement are expected to complete shortly with significantly more favourable terms
· Net debt as at 31 December 2014 of US$380 million with cash and funds of US$118 million
· Scheme Document in relation to the offer by Ophir Energy plc to be posted today; shareholders of Salamander and Ophir to vote on 6 February 2015; the Scheme expected to become effective 2 March 2015
· Intention to terminate the sale of an effective 40% interest in the Greater Bualuang Area with mutual agreement by SONA, satisfying a condition of the Ophir Offer

Chief Executive, James Menzies, commented:
"We are delighted to report that production has been strong in the second half of the year following the completion of the latest phase of Bualuang development. Measures taken to reduce Bualuang operating costs have been implemented and negotiations are underway on the Kerendan Gas Sales Agreement which we expect to result in significantly more favourable terms. In addition, we have today released documentation with regards to the offer from Ophir Energy plc which we expect will complete this quarter."

StockMarketWire.com
Ophir Energy has announced that at a general meeting the shareholders voted in favour of its proposed acquisition of of the entire issued and to be issued share capital of Salamander Energy.

Suspension of Listing and Trading in Salamander Shares
On 24 November 2014, the boards of Salamander Energy plc ("Salamander") and Ophir Energy plc ("Ophir") announced the terms of a recommended acquisition by Ophir of the entire issued and to be issued share capital of Salamander (the "Offer"), to be effected by means of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006 (the "Scheme"). The circular to shareholders of Salamander in connection with the Scheme (the "Scheme Document") was posted on 14 January 2015.

Pursuant to the terms of the Scheme and Listing Rule 5.3, Salamander announces that the listing of the Salamander Shares on the Official List and trading of the Salamander Shares on the London Stock Exchange has been suspended, effective from 7:30 a.m. today.