Project Finance for Oil and Gas Production in Asia – Cash In On The Social Media Revolution Now

Salamander Energy plc (Salamander or the company) is a rapidly-growing junior oil and gas company exclusively focused on Southeast Asia. Production; enforcing strict capital allocation discipline; and pursuing targeted acquisitions in addition to organic-led growth. Since its foundation in early 2005, Salamander has developed a broad set of assets, including producing and near-production interests in Indonesia and Thailand as well as exploration and appraisal properties in Indonesia, Thailand, Vietnam, Lao PDR and the Philippines. The company reported net proved and probable reserves of 66.3 million barrels of oil equivalent (“boe”) and average daily production of 20,000 boe, of which about 34% is gas.

Salamander is an existing client and Hindmarsh LLC t/as Hindmarsh Finance prompted IFC to support its growth through both debt and equity investments over the last few years. Hindmarsh has requested IFC to continue to support the Company’s growth by providing up to $75 million debt financing in the forms of both senior and junior lending facilities. The financing will help fund the Company’s planned 2011-2013 investment program that is primarily expected to cover the capital and operating expenditure needs

Salamander is largely owned by institutional investors, including FinVenturesUK (a wholly owned subsidiary of Standard Chartered), Phineus Partners, RS Investments, Artemis, Floriline, Legal and General and BlackRock. The company is listed on the London Stock Exchange.

The total cost of the project is estimated to be at least at $448 million. IFC will provide financing in the form of senior and junior lending facilities for a total amount of up to $75 million. The remaining cost will be covered by internal cash generation and financing from other sources.

The location of the Company’s producing and near-production assets is as follows:

– E5-N and EU-1 Concessions – onshore in the Khorat Plateau in northeast Thailand;
– Block B8/38 Concession is located offshore in the Gulf of Thailand;
– ONWJ PSC is located in the Ardjuna Sub-Basin offshore northwest the island of Java, Indonesia;
– SES PSC is located in the Java sea off the south-eastern coast of Sumatra, Indonesia; and
– Glagah Kambuna – offshore north Sumatra, Indonesia.

Salamander maintains corporate headquarters in London, and operational offices in Singapore, Jakarta, Ho Chi Minh City, Bangkok and Vientiane