Salamander

completed

Salamander Energy plc (Salamander or the company) is a young rapidly-growing independent oil and gas company exclusively focused on Southeast Asia. The company’s strategy is to build a sustainable upstream business through leveraging its regional knowledge and relationships; maintaining a balanced portfolio of production, development, appraisal and exploration assets; 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 and the Philippines. As of end-2007, the company reported net reserves of 56.6 million barrels of oil equivalent (boe) and average daily production of 7,820 boe. Salamander is largely owned by institutional investors, with no single investor holding a stake of over 10%, and is listed on the London Stock Exchange. IFC has been requested by the management of Salamander to provide up to $75 million of financing to help fund the company’s planned 2008-2010 investment program. The project is primarily expected to cover the capital and operating expenditure needs of the following producing and near-production assets: - the E5-N and EU-1 Concessions (Sinphuhorm) and the Block B8/38 Concession (Bualuang) in Thailand; and - the Offshore North West Java (ONWJ) and South East Sumatra (SES) Production Sharing Contracts as well as the Glagah Kambuna Technical Assistance Contract in Indonesia. It will include: - the drilling of new wells; - the selective work over of existing wells; - the deployment of a floating production storage and offloading (FPSO) vessel; - the installation of two offshore production platforms; - the laying of connection pipelines; and - the construction of gas processing facilities and other field infrastructure. The project will also include capital expenditure on exploration and appraisal in the company’s other interests in Southeast Asia, the potential acquisition of additional oil and gas properties, the refinancing of existing indebtedness and other general corporate uses. Salamander projects that the project will help it to increase its production more than twofold – to reach over 16,000 boe per day by 2010.