Ophir Energy has confirmed that it has made an offer to the board of Salamander Energy setting out the terms of a possible takeover.
Ophir says there is a “compelling strategic logic for a combination of the two businesses,” with assets in both Africa and South East Asia.
Ophir recently acquired assets in Myanmar and Indonesia, building on its traditional, extensive African acreage, which includes stakes in the major gas finds offshore Tanzania. Salamander’s assets are focused on Indonesia, Thailand, and includes the producing Greater Bualuang, offshore Thailand, and the North Kutei, offshore Indonesia, and onshore Greater Kerendan discoveries.
Image: The Bualuang FPSO (background).
“The combined business, using Ophir's exploration track record and financial strength and Salamander's established Asian operating platform, would be well positioned to exploit the rich opportunity set that exists in the South East Asia region,” said Ophir. “A combination of Salamander and Ophir has the opportunity to accelerate exploration activity both in Block G4/50, Thailand and in the assets Ophir has recently acquired in Myanmar and Indonesia. The combination would give shareholders exposure to 21 production, development and exploration blocks in South East Asia, as well as Ophir's extensive footprint in Africa.”
Last week, Salamander also said it had been in discussions with CEPSA and Strategic Energy (Global) over a possible offer for the company.