Salamander Energy 2013 full year results

DividendMax Ltd.

Operations

Average daily production up 31% to 14,200 boepd (2012: 10,800 boepd)

Bualuang contingent resource increased by 129% to 27.8 MMbo

West Kerendan-1 exploration success added 43 MMboe to contingent resource

Bualuang power and processing modules successfully loaded on to Bravo platform

Kerendan development wells completed and tested at 40 MMscfd

North Kutei campaign highlighted North Kendang and South Kecapi areas for future follow up

Strategic partner secured for Greater Kerendan area, field development on track

Financial

Revenue of $482.2 million (2012: $368.0 million)

Post-tax operating cash flow of $300.2 million (2012: $158.4 million)

Post-tax operating cash flow per boe of $57.76 per boe (2012: $40.22 per boe )

Profit before tax of $47.3 million (2012: Profit of $10.8 million)

Balance sheet diversified with issue of $150 million high yield bond

Year-end net debt of $259.9 million, flat on the mid-year position (2012: $194.6 million)

Year-end cash and fund balances of $265.0 million (2012: $208.8 million)

Outlook

2014 average Group daily production rate forecast to be 13,000-16,000 boepd

Past 7 days production averaged 16,200 boepd

Bualuang development drilling continues

New FSO scheduled to arrive at Bualuang field location in 2H 2014

Work to commercialise the West Kerendan volume continues

North Kendang re-drill expected to spud 1H 2014

G4/50 exploration - EIA applications in process

Chief Executive James Menzies commented:

"These results show the Group capturing all the synergies we highlighted when we realigned the strategy in 2011. We have seen growth in all of our key assets, through either exploration success or by exposing further development upside and the record unit cash flow points to the cash generative nature of the production base. Our operational focus is now on commercialising the increased contingent resource leading to a production plateau of 20,000 boepd from 2017."