Salamander Energy has agreed to acquire the full authorised share capital of Mitra Energia Bangkanai Limited (Mitra), which holds a 5% interest in the Bangkanai PSC, from a subsidiary of Sound Oil plc. On completion of the transaction, Salamander will hold an 85% 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 Group.

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 commercialisation of additional resources • A contingent payment of $1.5 million from revenues associated with production from a future discovery in the PSC

Tags: Salamander Energy