Sona Petroleum farms-in to Gulf of Thailand concesssion

Submitted by Paddy Harris on Mon, 2014-07-21 09:57

21st July 2014

Salamander has announced that a definitive share sale and purchase agreement has now been signed with Sona Petroleum Berhard (Sona) to dispose of an effective 40 per cent working interest in the B8/38 concession containing the Bualuang oilfield and the surrounding G4/50 concession, both located in the Gulf of Thailand

A contingent payment of up to USD 15m to be made by Sona to Salamander in the event of a commercial discovery in the G4/50 concession

Sona will pay a consideration of USD 280m in cash plus working capital adjustments based on the effective date of 1 January 2014.

Salamander will pay for the costs associated with the drilling of two exploration wells in the G4/50 concession, up to a cap of USD 15m.

A contingent payment of up to USD 15m to be made by Sona to Salamander in the event of a commercial discovery in the G4/50 concession.

Mitsui Oil Exploration Co (MOECO), from whom Salamander acquired its 100 per cent interest in G4/50, holds back-in rights to up to 50 per cent of the concession while the licence is in its exploration phase. In the event that MOECO exercises its back-in rights, Salamander’s and Sona’s effective working interests will each be diluted in proportion to their ownership in G4/50 (being 60/40).