Salamander buys SOCO from Bualang

Offshore staff

LONDON-- SOCO International is set to sell its subsidiary SOCO Exploration Thailand to Salamander Bualang, a division of Salamander Energy. Its chief asset is a 40% interest in license B8/38 in the Gulf of Thailand, which Salamander Bualang currently operates with a 60% stake.

The permit includes the Bualang oil field, which produces through five wells, including three horizontal wells completed earlier this year. Production is gathered on a 500,000-bbl capacity FPSO.

Salamander, which operates the development, expects average production this year of 8,500 b/d.

The transaction, effective Jan. 1, involves a cash consideration of $105 million minus various adjustments. However, it must first be ratified by SOCO’s shareholders.

Assuming it does go through, parent company Salamander Energy’s proven and probable reserves as at Dec. 31, 2009, will increase by 9 MMbbl to 73.8 MMboe.


07/20/2010