SALAMANDER ENERGY

Full Year Results

13th March 2014

DISCLAIMER

The presentation and these materials do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to
purchase or subscribe for, or any offer to underwrite or otherwise acquire any securities, nor shall any part of these materials or the fact of their
distribution or communication form the basis of, or be relied on in connection with, any contract, commitment or investment decision
whatsoever in relation thereto. The information included in the presentation and these materials is subject to updating, completion, revision
and amendment, and such information may change materially. No person is under any obligation to update or keep current the information
contained in the presentation and these materials, and any opinions expressed in relation thereto are subject to change without notice.
The presentation and materials do not constitute an offer of securities for sale in the United States or in any other jurisdiction. Securities will
not be registered under the US Securities Act of 1933 (the "Securities Act"), and may not be offered or sold in the United States absent
registration or an exemption from registration. The distribution of these materials in other jurisdictions may also be restricted by law, and
persons into whose possession these materials come should inform themselves about, and observe, any such restrictions.
This presentation includes forward-looking statements that reflect the Company's intentions, beliefs or current expectations. Forward-looking
statements involve all matters that are not historical fact. The Company has tried to identify those forward-looking statements by using the
words "may", "will", "would", "should", "expect", "intend", "estimate", "anticipate", "project", "believe", "seek", "plan, "predict", "continue"
and similar expressions or their negatives. Such statements are made on the basis of assumptions and expectations that the Company currently
believes are reasonable, but could prove to be wrong. Such forward-looking statements are subject to risks, uncertainties and assumptions and
other factors that could cause the Company's actual results of operations, financial condition, liquidity, performance, prospects or
opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, these
forward-looking statements. Important factors that could cause those differences include, but are not limited to: changing business or other
market conditions, general economic conditions, and the Company's ability to respond to trends in its industry. Additional factors could cause
actual results, performance or achievements to differ materially. The Company and each of its directors, officers, employees and advisors
expressly disclaim any obligation or undertaking to release any update of or revisions to any forward-looking statements in the presentation or
these materials, and any change in the Company's expectations or any change in events, conditions or circumstances on which these forwardlooking statements are based, except as required by applicable law or regulation.
By attending the presentation or by accepting any copy of the materials presented, you agree to be bound by the foregoing limitations.

SALAMANDER | 2013 | 2

INTRODUCTION

Introduction & Highlights

James Menzies, CEO

Financial Overview

Jonathan Copus, CFO

Operations Overview

Summary

SALAMANDER | 2013 | 3

Mike Buck, COO

James Menzies, CEO

INTRODUCTION AND HIGHLIGHTS

James Menzies, CEO

SALAMANDER ENERGY
RESULTS HIGHLIGHTS
Growing production, adding resources

FY2013 production of 14.2 Mboepd, up over 32%

Current production over 16.2 Mboepd, FY 2013 guidance 13 16 Mboepd

Contingent resource increased 48% to 121.3 MMboe

Group 2P reserve & resource base increased over 20% to 186 MMboe
Large steps taken across the portfolio

Bualuang development drilling outperformed expectations, more than doubling resources

Kerendan development drilling completed, flowed in excess of initial GSA

West Kerendan exploration success, potential to take production up to 70 MMscfd

SPHE-1 delivers best producer on Sinphuhorm field, adds net reserves

Financials showing clear benefits of the strategy

Revenue of $482 MM, up over 30%

Post-tax operating cash flow of $300.3 MM up 90%

Post-tax operating cash flow per boe of $57.76, up over 44%

Diversified balance sheet with issue of $150 MM high yield bond

YE 2013 cash position $265.0 MM and net debt position of $260 MM

Focus switches to commercialising resources to reserves and ultimately cash flow
SALAMANDER | 2013 | 5

DEVELOPING HUB POSITIONS IN THAILAND, INDONESIA &

MALAYSIA
Onshore Khorat, Thailand
Sinphuhorm gas field (9.5%)
Dong Mun gas development (27.2%)
Gas Production, Development & Exploration

Operated positions with large equity

participation
Anchor asset with reserves &/or resources,
exploration & appraisal upside
Room for expansion

Greater Bualuang, Thailand

B8/38 (100%), operator
G4/50 (100%*), operator
Oil Production, Development & Exploration
*subject to 50% MOECO back-in

Competitive advantage through

data/knowledge
Managing exit / harvesting non-core areas
Greater Kerendan, Indonesia
Bangkanai PSC (70%), operator
NE Bangkanai PSC (100%), operator
W Bangkanai PSC(70%), operator
Gas Development & Exploration

Melaka Strait, Malaysia

Port Klang oil
discovery
SALAMANDER
| 2013
| 6

(85%), operator
Oil Appraisal & Exploration

HUB STRATEGY FOR INDEPENDENT E&P OPERATOR

WELL SUITED TO SE ASIA

Field /
Discovery

Building a portfolio of opportunities

Sinphuhorm Area,
OnshoreThailand

Low risk exploration

using subsurface
knowledge

Bualuang Area,
Offshore Thailand

Pick up surrounding
opportunities in
same basin

Enhanced technical insight

Operational flexibility
Financial synergies
SALAMANDER | 2013 | 7

Kerendan Area, Indonesia

Melaka Straits, Malaysia & Indonesia

MATURITY

DEVELOPED / DISCOVERED RESOURCES

Add value through

development /
commercialisation

RESERVES & RESOURCES

UPLIFTED IN ALL THREE AREAS
MMboe

200.0
180.0
160.0
140.0
120.0
100.0
80.0
60.0
40.0
20.0
-

Reserve and resource growth by asset

MMboe

Reserve and resources YE 2012 v YE 2013

90.0
5.2

80.0

52.9

16.3

70.0

186.5
155.1

60.0
50.0
40.0

YE 2012

Production

Disposals

Revisions /
Discoveries

YE 2013

Gas
(Bcf)

Total
(MMboe)

20.0

Proved Reserves

20.6

119.7

41.9

10.0

Probable Reserves

11.1

73.8

23.4

0.0

Contingent Resource

33.9

494.0

121.3

TOTAL

65.6

687.5

186.5

SALAMANDER | 2013 | 8

2C

2C

30.0

Oil & Liquids

(MMbo)

Major uplift in certified group resources

Over 52 MMboe added to certified Group resources

Total Group certified reserve & resource base up over 20%

to 186.5 MMboe

35 / 65 Oil / Gas split

2C

2C
2P

2C

2P
2P

2P

2P

2C
2P

PROD
YE2012 YE2013

YE2012 YE2013

YE2012 YE2013

Bualuang Area

Kerendan Area*

Sinphuhorm Area
* Pro-rated for disposal

Positive additions in all 3 areas

Bualuang drilling more than doubles resources in field, up

129% to 27.8 MMbo

West Kerendan discovery more than doubles total Upper

Berai resource base, adds net certified 43 MMboe

Almost 600 Bcf gross certified in Kerendan Area

SPHE-1 success adds to Sinphuhorm 2P reserves, certified

net 18 Bcf addition to 108 Bcf

RESOURCE TO RESERVE CONVERSION

THE NEXT WAVE OF PRODUCTION GROWTH
Illustrative 2P + 2C production profile
25

Average daily production (mboepd)

Dong Mun 2C

Kerendan 2C

Bualuang 2C

Sinphuhorm 2P

Kerendan 2P

Bualuang 2P

20

15

10

0
2013

2014

2015

Key Milestones

Bualuang Charlie Platform sanction

Kerendan expanded Plan of Development

Kerendan additional Gas Sales Agreement

Dong Mun development sanction

SALAMANDER | 2013 | 9

2016

2017

2018

2019

2020

Production rising to over 20 Mboepd in 2017

2C resource upgrade = c. 4 years at 20 Mboepd plateau
No forward capex post 2014 needed to deliver 2P profile
Required capex to deliver 2C can be sourced from internal
cash generation

FINANCIAL OVERVIEW
Jonathan Copus, CFO

FY 2013 FINANCIAL OVERVIEW

$MM
Production
(Mboepd)

2013

2012
Group production up 31% y-o-y
Bualuang production up 72% y-o-y

14.2

10.8

104.0

104.0

7.8

7.2

482.2

368.0

31% higher rising to 49% post inventory movements

251.5

122.8

105% higher driven by falling unit operating costs

47.3

10.8

$216.6MM pre exploration charge (up 250% year-on-year)

367.8

255.6

44% higher year-on-year

300.3

158.4

90% higher year-on-year

260.0

194.6

Realisation
Oil

($ per bbl)

Gas ($ per Mscf)

Revenue
($MM)

Gross Profit
($MM)

Pre-tax Profit
($MM)

Pre-tax operating cash flow

($MM)

Post-tax operating cash flow

($MM)

Net Debt
($MM)

Cash
($MM)

SALAMANDER | 2013 | 11

265.0

208.8

Brent slightly weaker, but realisations flat y-o-y

Realisation per boe sold $93.81/boe

Total Gross Debt

Cash and funds
Net Debt

31 Dec 2013
$525.0MM
$265.0MM
$260.0MM

30 Jun 2013
$425.0MM
$166.8MM
$258.2MM

Record cash generation, balance sheet evolving

FY 2013 FINANCIAL OVERVIEW

INCOME STATEMENT
$MM

FY 2013

FY 2012

482.2

368.0

Direct Operating Costs

-86.3

-74.8

Royalty

-44.4

-30.6

Other Cost of Sales

-100.0

-139.8

Gross Profit

251.5

122.8

Exploration expense

-169.3

-51.1

Admin

-7.3

-10.8

Other

-0.8

-16.6

Operating profit

74.1

44.3

Net financial and other losses

-26.8

-33.5

Profit before tax

47.3

10.8

Tax

-167.1

-73.1

Loss for period

-119.8

-62.3

Revenue
Cost of sales

FY 2013 non-recurring items

None

Recurring non-cash items

Inventory movement:
Exploration expense:
Loss on cash flow hedges:

Revenue lowered by $13.0 MM

(FY 2012: revenue up $36.4 MM)
$169.3 MM (FY 2012: $51.1 MM)
$4.4 MM (FY 2012: n/a)

Tax reconciliation:

see appendix

Underlying figures
Revenue
Net Finance cost
Cash Op cost
Admin. Cost

Bualuang Dubai less $0.4/bbl

(FY 2012 Dubai less $1.10/bbl)
$22.7 MM (FY 2012: $27.2 MM)
$86.3 MM (FY 2012: $74.8 MM)
$16.6/boe 13% below FY 2012
$7.3 MM (FY 2012: $10.8 MM)

$42.5 MM adjusted profit (FY 2012: $17.9 MM loss)

SALAMANDER | 2013 | 12

E&A charge
SRB
Deferred tax

FY 2013 FINANCIAL OVERVIEW

CASH FLOW EVOLUTION
$700

Post Tax Op CF 90% higher $300.3MM

($57.76/boe up 44% y-o-y)
Capex $354.5MM
(plus $19.4MM PCG)

$12

$600

$27

-$68

$150MM HY bond
$50MM bridge repaid
CB remains

$500

Cash tax
31% lower
$400

-$180

$355

Production 32% higher

Op CF 68% higher
Unit Op CF 27% higher

$300

14.2kboe/d
$357.0MM
$68.7/boe

$20
-$179

$67

$200

Opening unrestricted cash

balance $207.3MM
$100

Closing cash balance $265.0MM

(including $20.3MM restricted)

$207

$245

$0
Op CF

SALAMANDER | 2013 | 13

WC

Tax

Saka proceeds

P&D

E&A

Finance and Other

Post-tax operating cash flow up 90%

Closing cash
balance

2014 OUTLOOK
WORKING OUR ASSETS HARDER
Evolution of Group cash flow (US$ per boe)

Driving the next wave of production growth

13,000 to 16,000 boe per day in 2014

Mid-term upside beyond 20,000 bbl per day

18.6 Mboe/d
42%

10.8 Mboe/d
67%

$17.0

$100

2014/2015 crude sales Dubai less $0.4 per bbl

(2012/2013: Dubai less $1.10 per bbl)

$21.8

$80

$21.6

Module start up to lower opex by c. $20-25 MM p.a.

Actively managing taxation

Cash tax levied on prior year production

Tax fluctuates with production, oil price and capex

$60

$40

$17.6

$57.8

Development a core focus in 2014

c.75% of capex on P&D
c.75% of capex in Thailand
Upper end of $250 to $275 MM guidance

$40.3
$28.6

$0
FY-11
Discount

SALAMANDER | 2013 | 14

$32.5

$18.9

$20

$11.3
$18.0

$46.2

Falling operating costs

14.2 Mboe/d
86%

$120

Strengthening realisations

Production
Bualuang %

Opex + G&A

FY-12
Cash tax + Royalty

FY-13
Post-tax cash margin

Continued focus on near-term value enhancement

OPERATIONS OVERVIEW
Mike Buck, COO

GREATER BUALUANG

B8/38

G4/50

SALAMANDER | 2013 | 16

BUALUANG
CONSISTENT STRONG RESERVES AND PRODUCTION GROWTH
Evolution of reserves and resources
70
Reserves (MMboe)

Reserves trebled since first production in 2008

Originally estimated to contain 15 MMbo

Undergone multiple reserve upgrades since start up, current

estimated ultimate recovery (2P + 2C) of c. 70 MMbo

YE 2013 increase in 2C (129%) will drive next phase of growth

Field has outgrown initial development concept of one WHP

and FPSO

80

60

2C
2P
Cumulative Production

50
40
30
20

SALAMANDER | 2013 | 17

10

0
YE2007 YE 2008 YE 2009 YE 2010 YE 2011 YE 2012 YE 2013

16

Oil (Mbopd)

Bravo platform installed in 4Q 2012 Greater production capacity

Bravo provided 16 additional well slots to drive production

growth, 11 wells drilled in 2013

New production range 11,000-14,000 bopd (up from 7,0008,000 bopd)

2 year rig contract for Atwood Mako until Sept. 2014

Drilling and completing horizontal producers in c. 19 days,

average cost c. US$8 million

Adding more slots and drilling dual lateral wells in 2014 on

Bravo

Additional investment for 2C exploitation is entirely

discretionary but the prize is extremely valuable and the
investment is fiscally efficient

2P and 2C production profile

14

2C Resources

12

2P Reserves

10

Historical

8
6

4
2
0

Source: Historical (2008-2013), 2P Reserves (2014-2025) RPS Reserves

Report YE2013.2C Resources (2016-2025) Company

BUALUANGS RESERVOIRS

Exploitation of new reservoirs underway

T4.1 was the sole target of producers

drilled from 2008 to 2012

First T2 producers in 2013 significantly

out-performed expectation

First East Terrace T4.1 production also

better than forecast

T2, T5 and T3 to be targeted in 2014

New reservoirs identified during the

Bravo drilling campaign in T4.o, 4.2,
4.4, 4.5

Targeting 2C resource to 2P reserve

conversion in 2014

FEED studies taking place to

determine needs

Project sanction in mid 2014

Start production through new

facilities in 2016

Bualuangs reservoirs
SALAMANDER | 2013 | 18

BRAVO DEVELOPMENT DRILLING

Regents
Park

Old
Street

Hyde
Park

Buckingham
Palace

SALAMANDER | 2013 | 19

Salamander
Office

Drilling performance setting new standards

Extended reach horizontal drilling to 3500m measured

depth with vertical depth of only 1100m

Wells steered to targets with accuracy of a few metres

Tortuosity of some wells amongst highest worldwide

Wells are drilled, completed and put on production in 19

days or less

Dual lateral completions to be employed to give two

reservoir drains through one slot. 5 planned in 2014

Slots to be added to Bravo in 2014 to accelerate production

of some of the newly certified 2C resources

BUALUANG
DRIVING LONG TERM OPERATING COSTS DOWN
Bualuang field operating cost forecast

90
80
Opex (US$ million)

New infrastructure to reduce opex by US$20-25 million p.a.

Power and processing modules installed on Bravo. Hook up in

progress

Release of Rubicon Vantage FPSO and replacement with lower

cost FSO in 3Q14

10 [+5] year FSO lease signed with Teekay, vessel arriving in June

Reduction in operating costs through crude burning power

generation and lower FSO day rate

70
60
50
40
30
20
10
0
2013

2014

2015

2016

Source: RPS Reserves Report, 8 March 2013

Bravo Modules installation

SALAMANDER | 2013 | 20

FSO conversion

GREATER BUALUANG FORWARD PLAN

2013
129% increase in 2C resources certified at year end
More wells required from a new platform or platforms
2014
FEED underway
Expect to select platform design and sanction project by
mid year
A significant portion of 2C resource will then move to 2P
reserves
Switch to FSO operations in 3Q with big savings in opex
2015
Platform construction
2016
Platform installation and production in 1Q
Drilling throughout the year

SALAMANDER | 2013 | 21

Heavy lifting at Bualuang

G4/50 EXPLORATION STATUS

Western Basin

Abutment
Hanging-wall

Fault & Dip

Basement

Partial relinquishment
completed
All high graded areas
retained
EIA application in
process

Stratigraphic

20 drilling locations
Drilling anticipated in
2014

Schematic section across western basin

Prospect
Hua Hin

Structural Type
Fault & Dip

Analogue

Mean Resource
(MMbo)

Chance of
Success

Bualuang

25

1 in 3

Yala (A,B,C & D)

Abutment

Untested

25*

1 in 4

Chang Mai

Hanging Wall /
Abutment

Bua Ban,
Manora

40

1 in 3

Sukhothai

Fault & Dip

Bualuang

25

1 in 3

* A,B,C and D are each 25 MMbo

SALAMANDER | 2013 | 22

GREATER KERENDAN

North East Bangkanai PSC

Kerendan

West Bangkanai PSC

SALAMANDER | 2013 | 23

WEST KERENDAN
SIGNIFICANT UPPER BERAI DISCOVERY

WK1 operational summary

K-3

Drilled to 4050m. Testing underway

Upper Berai

401m of gas saturation in Upper Berai,

163m of pay. Potentially 2 separate gas
columns
Upper zone in communication with
Kerendan
Lower zone tested at 18.6MMscfd and
181bcpd
313 Bcf mean certified 2C in upper gas
zone with significant upside

K-7

West Kerendan-1

K-8
K-1 & 6

Lower Berai

K-4

Up to 70m of interpreted gas pay

Discrete gas and water zones. Detailed
log analysis underway

Tanjung

Thinner than prognosed Upper Tanjung

sitting on Basement high bald of sandier
Lower Tanjung
8m of gas charged sands
Large Lower Tanjung potential
onlapping the high
SALAMANDER | 2013 | 24

K-2
Mapped closure to
West suggests Upper
Berai trap is full to spill

Kerendan and WK gas

accumulations mapped as in
communication. Supported by
pressure data from the wells

GWC at 2854mTVDSS
5000 m

KERENDAN FIELD CROSS SECTION

10 km

Planned Second
Upper Berai DST

First Upper Berai DST

18 MMcfd & 183 bcpd

SALAMANDER | 2013 | 25

GREATER KERENDAN REGIONAL SETTING

AND FOLLOW UP POTENTIAL
NW

West
Kerendan-1

SE
Jupoi Prospect

Kerendan- 7

1,000m
2,000m
Top Upper Berai
3,000m

Intra Upper Berai

Lower Berai

4,000m

Upper Tanjung
Lower Tanjung

Depth in
meters

Basement

10 km

Upper Berai Carbonate reservoir developed on long standing Basement high

7 out of 8 wells drilled produced gas from Upper Berai
Follow up Berai potential in W Bangkanai PSC. Leads identified
Lower Tanjung absent at WK but thickens off crest. Prospective under Kerendan field
Jupoi is a big, shallow Lower Tanjung prospect

SALAMANDER | 2013 | 26

COMMERCIALISING GREATER KERENDAN

Power line transmission network

60.0
50.0
40.0
30.0
20.0

10.0

West
2C2C
WestKerendan
Kerendan

Kerendan
2C
2C
Resources

Kerendan
2P
2P
Reserves

2030

2029

2028

2027

2026

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

0.0
2015

SALAMANDER | 2013 | 27

70.0

2014

Gas Sales Agreements

Price increase to existing GSA to restore economics

affected by delay and cost increase

Second GSA to fill the plant capacity from resources

already discovered

2P and 2C production profile

80.0

MMscfd

Kerendan gas field

120 Bcf proved reserves. 160 Bcf contingent resources

Development on-going providing feedstock for new build

local power generation with GSA for 20MMscfd

4 production wells tested at 40 MMscfd

Gas processing plant complete in 4Q 2014

West Kerendan discovery

313 Bcf of contingent resource already certified

Plan to incorporate into Kerendan PoD

Sufficient 2C resource to fill power plant up to 70 MMscfd

PLN Kerendan power plant can take all the initial production

PLN building 155 MW gas engine plant with upgrade to

350 MW in 2016

Power plant construction by Wrtsil and local partner

Commissioning and start up of first phase in 4Q 2014

GREATER KERENDAN FORWARD PLAN

2014

Complete testing of WK1 1Q

Potential to appraise Upper Berai with WK2 in 2Q
Re-certify reserves and resources with Indonesian
certifier. Underway, complete by mid year
Commence production 4Q
Revise Kerendan POD to incorporate WK by year end

2015

De-bottleneck infrastructure to fill phase 1 of power plant

with c. 30MMscfd mid year
Negotiate second GSA with PLN by year end to fill
Kerendan power plant phase 2 capacity

2016/17

Expand gas processing plant and complete power plant

phase 2
Drill additional wells as required to meet production
commitment

2018

Ramp up to 70 MMscfd delivery

West Kerendan-1 from the air
SALAMANDER | 2013 | 28

MALAYSIA

PM-322

SALAMANDER | 2013 | 29

MALAYSIAN COUNTRY ENTRY, PM322 A GOOD STRATEGIC FIT

Proven hydrocarbon system

Port Klang-1 oil discovery drilled by Sun Oil, 1991

Found excellent quality Pematang source rocks

Early syn-rift Pematang sandstone reservoir

Initial assessment of recoverable volumes c. 30 MMbo

Lightly explored area

Only 6 wells drilled in Malaysian sector of Melaka Strait

Extension of the prolific Central Sumatra basin

Salamander has an option to sign adjacent acreage in

Indonesia on the same play
Work programme

3D seismic in 2014/15

One commitment well in 2016 but prospect inventory has

numerous targets already identified

Geology, drilling conditions and target depths similar to

Bualuang

Running room in Malaysia which has many undeveloped

discoveries

SALAMANDER | 2013 | 30

20,000 km2 block in under-explored Melaka Strait

N. Sumatra
Basin

C. Sumatra
Basin

NORTH KUTEI

Bontang PSC

SALAMANDER | 2013 | 31

SE Sangatta PSC

NORTH KENDANG
RE-DRILL PREPARATIONS
SSW

NNE NW

SE

North Kendang-1 and 2

NK1 had high

A pressure wet gas kick
from Upper Miocene

Well control insurance claim approved

$16 MM received to date
BT45 Top
Re-drill
insurance will pay for new
well
to kick point
BT45

North Kendang
High
?
BT65 Top
Seq

BT80
+400m canyon fill
section below TD
kick depth

TD Kick
Zone

Y
X
Z
SALAMANDER | 2013 | 32

700m

Rig due in June 2014. New casing

Rabab
Toe
programme and
Managed
Pressure
Thrust High
Drilling to deal with high pressures

Risks reduced by NK1: source, charge,

trap all proven, reservoir development
unknown

Resource
BasePotential:
Canyon BT65 channel 40
Reflector
140 300 Bcf. BT80 channel 120 460
1,000 Bcf

BT65
Lobe

BT80
Lobe

North

Bttm

SUMMARY

James Menzies, CEO

KEY MILESTONES

Resource Addition

Commercialisation

2013
Bualuang
Area,
Thailand

Kerendan
Area,
Indonesia
Khorat
Onshore,
Thailand

SALAMANDER | 2013 | 34

Reserve Addition

2014

Resource
Upgrade

YE Reserve
Booking

Charlie Platform
Sanction

W. Kerendan Expanded PoD, Kerendan

Discovery
Additional GSA Ready to
deliver

Dong Mun
GSA

Development

2015

Production

2016

Platform
Construction

Installation &
Commissioning

Expanded Gas
Processing & Plant
Capacity

Expanded
Production

Dong Mun
Development

Dong Mun
Onstream

Charlie
Drilling

SUMMARY

Excellent
progress across
the portfolio

Financials

reflecting benefits
of strategy

Focus on nearterm
commercialising
resources

SALAMANDER | 2013 | 35

FY2013 production average production rate 14.2 Mboepd, up over 30%

Significant increase in resources added through the drill-bit to 121.3 MMboe, up 48%
Bualuang development continues, Kerendan expansion through West Kerendan discovery

Post-tax cash flow up 90% to $300.3 MM

Cash margins continue to improve, FY2013 $57.76/barrel up 44%
Re-structured balance sheet, YE2013 cash of $265 MM

Forecast 2014 production rate 13 16 Mboepd

Key milestones Bualuang Charlie sanction; Expanded Kerendan PoD & further GSA
Delivering over 20 Mboepd on 4 year plateau from 2017
Self-funded
2013 Resource Adds Through Drill Bit Success, 2014 Focus On Commercialisation

IR CONTACT

Geoff Callow
Head of Corporate Affairs
Tel: + 44 (0)20 7432 2680
Email: geoff.callow@salamanderenergy.com
www.salamander-energy.com
@smdrenergyplc

SALAMANDER | 2013 | 36

APPENDIX

FY 2013 FINANCIAL OVERVIEW

TAX RECONCILIATION (NOTE 9)
FY 2013

FY 2012

47.3

10.8

UK losses

25.4

42.8

SRB

91.2

57.6

Non-allowable exploration costs

103.2

18.4

Other items

67.1

16.6

334.2

146.2

Applicable tax rate

50%

50%

Total tax charge

167.1

73.1

PBT
Adjustments:

Adjusted PBT

SALAMANDER | 2013 | 38

THAILAND - KHORAT PLATEAU

L15/43
EU-1
E5-N

L27/43

SALAMANDER | 2013 | 39

SINPHUHORM
RECOGNISED UPSIDE YET TO BE PURSUED

Hess THAILAND (Operator) divesting of asset

Hess has not been an aggressive operator

Upside potential on the field has not been chased

Sales process ongoing, expected imminent conclusion

Anticipate that new operator will invest in the asset to pursue the upside

Potential reserves and production growth

Drilling in L15/43 proves field extends into adjacent Block

Sinphuhorm East-1 tested at in excess of 50 MMscfd proving the

extension of the field into L15/43

Salamander has a 27.2% interest in L15/43 so equity interest in Sinphuhorm

Field expected to increase

Well was located based on 3D seismic acquired in 2011 and demonstrates

the ability to target productive zones in the reservoir based on seismic

Uncertainty remains as to GWC upside case could potentially double

field size

SALAMANDER | 2013 | 40

SPHE-1ST

DONG MUN
GAS DISCOVERY APPROACHING COMMERCIALISATION

Dong Mun field development

Successful appraisal well DM3ST in 2012

Production area approved

Operator estimates Dong Mun will produce at 20mmcf/d for 10

years but with potential to expand and extend

3D seismic shot in 2013

Aiming for first gas in 2016

Production plan submitted

Contractors tendering for FEED studies

GSA negotiations underway

Block L27/43
27.2% (1)

Salamander Working Interest

Ownership of Dong Mun
Net 2C Resources (RPS, 01/04/13)
First production
Expected plateau (2016-2028)

APICO (100%, Operator)

4.1 MMboe: 24.6 BCF
Est. 2016
Net c. 5.4 mmcf/d

Bangkok
Sattahip

L27/43

(1)

Interest held through 27.2% stake in APICO who own 100% working interest in Block L27/43
SALAMANDER | 2013 | 41