Salamander buys 5% stake in Mitra Energia

By Nellawati

London-based energy firm Salamander Energy plc announces that it has agreed to acquire the full authorised share capital of Mitra Energia Bangkanai Limited, which holds a 5 percent interest in the Bangkanai PSC, from a subsidiary of Sound Oil plc.

On completion of the transaction, Salamander will hold an 85 percent interest in the licence. The transaction will add approximately 1.2 mmboe of proved reserves and 1.6 mmboe of contingent resources net to the company, it said in a statement.

The Mitra interest is carried by Salamander through to first gas and the consideration to acquire it will comprise: an initial cash payment of $4.5 million, a further $1.1 million cash payment conditional on both the commencement of gas production and the signature of a GSA for commercialization of additional resources, a contingent payment of $1.5 million from revenues associated with production from a future discovery in the PSC.

The Bangkanai PSC is located onshore in central Kalimantan, Indonesia and contains the Kerendan gas field which is undergoing development. To date, 122.6 Bcf has been committed for sale under a Gas Sales Agreement with PLN and a further 160 Bcf of resource is identified in the field for further commercialisation. The field is expected to be on stream in 2014.

Editing by Dadan Wijaksana