Salamander to divest 40% interest in Thailand’s Bualuang field

British oil and gas firm Salamander Energy has agreed to sell its 40% working interest in the Bualuang Field, offshore Thailand, along with other concessions to Malaysia-based Sona Petroleum for $280m.

Salamander will divest the 40% interest in both the B8/38 concession, which holds the Bualuang Field and the surrounding G4/50 concession.

Under the deal, Sona will pay $250m for a 40% effective interest in the B8/38 site and $30m for the same stake in the G4/50 exploration concession.

Salamander has agreed to carry SONA’s costs associated with the drilling of two exploration wells in the G4/50 concession up to an agreed cap and the Malaysian firm will pay contingent cash payment of about $15m for a potential commercial discovery at the G4/50 site.

Salamander’s current estimated gross Bualuang Field proven and probable reserves are 32.7 million barrels of oil, along with gross 2C resources of 32.2 million barrels.

The transaction is anticipated to be completed by the third quarter of this year.

Salamander Energy CEO James Menzies: "Our Bualuang field and surrounding acreage has proved to be a highly successful growth asset for Salamander.

"The group’s hub strategy is designed to bring assets to phased maturity, releasing value in turn and providing for both re-investment in early stage development and capital return."

Salamander has a mix of producing, development and exploration assets in Thailand, Indonesia and Malaysia.

---

Image: Salamander Energy CEO James Menzies. Photo: courtesy of Salamander Energy.