salamander bualuang platform 3

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SALAMANDER ENERGYFull Year Results

13th March 2014



© SALAMANDER | 2013 | 2

DISCLAIMER

The presentation and these materials do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer topurchase or subscribe for, or any offer to underwrite or otherwise acquire any securities, nor shall any part of these materials or the fact of theirdistribution or communication form the basis of, or be relied on in connection with, any contract, commitment or investment decisionwhatsoever in relation thereto. The information included in the presentation and these materials is subject to updating, completion, revisionand amendment, and such information may change materially. No person is under any obligation to update or keep current the informationcontained in the presentation and these materials, and any opinions expressed in relation thereto are subject to change without notice.

The presentation and materials do not constitute an offer of securities for sale in the United States or in any other jurisdiction. Securities willnot be registered under the US Securities Act of 1933 (the "Securities Act"), and may not be offered or sold in the United States absentregistration or an exemption from registration. The distribution of these materials in other jurisdictions may also be restricted by law, and

persons into whose possession these materials come should inform themselves about, and observe, any such restrictions. This presentation includes forward-looking statements that reflect the Company's intentions, beliefs or current expectations. Forward-looking

statements involve all matters that are not historical fact. The Company has tried to identify those forward-looking statements by using thewords "may", "will", "would", "should", "expect", "intend", "estimate", "anticipate", "project", "believe", "seek", "plan“, "predict", "continue"and similar expressions or their negatives. Such statements are made on the basis of assumptions and expectations that the Company currentlybelieves are reasonable, but could prove to be wrong. Such forward-looking statements are subject to risks, uncertainties and assumptions andother factors that could cause the Company's actual results of operations, financial condition, liquidity, performance, prospects oropportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, theseforward-looking statements. Important factors that could cause those differences include, but are not limited to: changing business or othermarket conditions, general economic conditions, and the Company's ability to respond to trends in its industry. Additional factors could cause

actual results, performance or achievements to differ materially. The Company and each of its directors, officers, employees and advisorsexpressly disclaim any obligation or undertaking to release any update of or revisions to any forward-looking statements in the presentation orthese materials, and any change in the Company's expectations or any change in events, conditions or circumstances on which these forward-looking statements are based, except as required by applicable law or regulation.

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INTRODUCTION

Introduction & Highlights1 James Menzies, CEO

Financial Overview2 Jonathan Copus, CFO

Operations Overview3 Mike Buck, COO

Summary4 James Menzies, CEO



INTRODUCTION AND HIGHLIGHTS

James Menzies, CEO




SALAMANDER ENERGY

RESULTS HIGHLIGHTS

Growing production, adding resources

FY2013 production of 14.2 Mboepd, up over 32%

Current production over 16.2 Mboepd, FY 2013 guidance 13 – 16 Mboepd

Contingent resource increased 48% to 121.3 MMboe

Group 2P reserve & resource base increased over 20% to 186 MMboe

Large steps taken across the portfolio

Bualuang development drilling outperformed expectations, more than doubling resources

Kerendan development drilling completed, flowed in excess of initial GSA

West Kerendan exploration success, potential to take production up to 70 MMscfd

SPHE-1 delivers best producer on Sinphuhorm field, adds net reserves

Financials showing clear benefits of the strategy

Revenue of $482 MM, up over 30%

Post-tax operating cash flow of $300.3 MM up 90%

Post-tax operating cash flow per boe of $57.76, up over 44%

Diversified balance sheet with issue of $150 MM high yield bond

YE 2013 cash position $265.0 MM and net debt position of $260 MM

Focus switches to commercialising resources to reserves and ultimately cash flow




DEVELOPING HUB POSITIONS IN THAILAND, INDONESIA &

MALAYSIA

Competitive advantage throughdata/knowledge

Room for expansion

Managing exit / harvesting non-core areas

Anchor asset with reserves &/or resources,exploration & appraisal upside

Operated positions with large equityparticipation

Melaka Strait, MalaysiaPort Klang oil discovery (85%), operatorOil Appraisal & Exploration

Greater Bualuang, ThailandB8/38 (100%), operatorG4/50 (100%*), operatorOil Production, Development & Exploration

*subject to 50% MOECO back-in

Onshore Khorat, ThailandSinphuhorm gas field (9.5%)Dong Mun gas development (27.2%)Gas Production, Development & Exploration

Greater Kerendan, IndonesiaBangkanai PSC (70%), operatorNE Bangkanai PSC (100%), operatorW Bangkanai PSC(70%), operatorGas Development & Exploration




HUB STRATEGY FOR INDEPENDENT E&P OPERATOR

WELL SUITED TO SE ASIA

Melaka Straits, Malaysia & Indonesia

D E V E L O P E D / D I S C O V E R E D R E S O U R C E S

Sinphuhorm Area,OnshoreThailand

Bualuang Area,Offshore Thailand

Kerendan Area, Indonesia

MATURITY

Building a portfolio of opportunitiesField /

Discovery

Enhanced technical insight

Operational flexibility

Financial synergies

Add value through

development /commercialisation

Low risk explorationusing subsurface

knowledge

Pick up surroundingopportunities in

same basin




2P

2P 2P

2C

2C2C

PROD

2P

2P 2P

2C 2C

2C

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

RESERVES & RESOURCES

UPLIFTED IN ALL THREE AREAS

MMboe

Reserve and resource growth by asset

Bualuang Area Kerendan Area* Sinphuhorm Area

* Pro-rated for disposal

YE2012 YE2012 YE2012 YE2013 YE2013 YE2013

Oil & Liquids

(MMbo)

Gas

(Bcf)

Total

(MMboe)

Proved Reserves 20.6 119.7 41.9

Probable Reserves 11.1 73.8 23.4

Contingent Resource 33.9 494.0 121.3

TOTAL 65.6 687.5 186.5

Major uplift in certified group resources Over 52 MMboe added to certified Group resources Total Group certified reserve & resource base up over 20%

to 186.5 MMboe 35 / 65 Oil / Gas split

Positive additions in all 3 areas Bualuang drilling more than doubles resources in field, up

129% to 27.8 MMbo West Kerendan discovery more than doubles total Upper

Berai resource base, adds net certified 43 MMboe Almost 600 Bcf gross certified in Kerendan Area SPHE-1 success adds to Sinphuhorm 2P reserves, certified

net 18 Bcf addition to 108 Bcf

155.1186.5

5.2 16.3 52.9

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

YE 2012 Production Disposals Revisions /Discoveries

YE 2013

MMboe

Reserve and resources YE 2012 v YE 2013



FINANCIAL OVERVIEW

Jonathan Copus, CFO




FY 2013 FINANCIAL OVERVIEW

Group production up 31% y-o-yBualuang production up 72% y-o-y

Production(Mboepd)

14.2 10.8

Realisation

Oil ($ per bbl) 104.0 104.0

Gas ($ per Mscf) 7.8 7.2

Revenue($MM)

482.2 368.0

Pre-tax Profit($MM)

47.3 10.8

Pre-tax operating cash flow($MM)

367.8 255.6

Net Debt($MM)

260.0 194.6

Post-tax operating cash flow($MM)

300.3 158.4

31% higher… rising to 49% post inventory movements

Brent slightly weaker, but realisations flat y-o-y

Realisation per boe sold $93.81/boe

44% higher year-on-year

90% higher year-on-year

Record cash generation, balance sheet evolving

2013 2012

Cash($MM)

265.0 208.8

Gross Profit($MM)

251.5 122.8 105% higher driven by falling unit operating costs

31 Dec 2013 30 Jun 2013

Total Gross Debt $525.0MM $425.0MM

Cash and funds $265.0MM $166.8MM

Net Debt $260.0MM $258.2MM

$216.6MM pre exploration charge (up 250% year-on-year)

$MM





INCOME STATEMENT

FY 2013 FY 2012

Cost of sales

Direct Operating Costs -86.3 -74.8

Royalty -44.4 -30.6

Other Cost of Sales -100.0 -139.8

Gross Profit 251.5 122.8

Revenue 482.2 368.0

Exploration expense -169.3 -51.1

Admin -7.3 -10.8

Other -0.8 -16.6

Operating profit 74.1 44.3

Net financial and other losses -26.8 -33.5

Profit before tax 47.3 10.8

Tax -167.1 -73.1

Loss for period -119.8 -62.3

FY 2013 non-recurring itemsNone

Underlying figures

Revenue Bualuang Dubai less $0.4/bbl

(FY 2012 Dubai less $1.10/bbl)

Net Finance cost $22.7 MM (FY 2012: $27.2 MM)Cash Op cost $86.3 MM (FY 2012: $74.8 MM)

$16.6/boe 13% below FY 2012

Admin. Cost $7.3 MM (FY 2012: $10.8 MM)

Recurring non-cash items

Inventory movement: Revenue lowered by $13.0 MM

(FY 2012: revenue up $36.4 MM)

Exploration expense: $169.3 MM (FY 2012: $51.1 MM)

Loss on cash flow hedges: $4.4 MM (FY 2012: n/a)

Tax reconciliation: see appendix E&A charge

SRB

Deferred tax

$42.5 MM adjusted profit (FY 2012: $17.9 MM loss)

$MM




Evolution of Group cash flow (US$ per boe)

2014 OUTLOOK

WORKING OUR ASSETS HARDER

Continued focus on near-term value enhancement

ProductionBualuang %

18.6 Mboe/d42%

10.8 Mboe/d67%

14.2 Mboe/d86%Driving the next wave of production growth

13,000 to 16,000 boe per day in 2014 Mid-term upside beyond 20,000 bbl per day

Strengthening realisations 2014/2015 crude sales Dubai less $0.4 per bbl

(2012/2013: Dubai less $1.10 per bbl)

Falling operating costs Module start up to lower opex by c. $20-25 MM p.a.

Actively managing taxation Cash tax levied on prior year production Tax fluctuates with production, oil price and capex

Development a core focus in 2014 c.75% of capex on P&D c.75% of capex in Thailand Upper end of $250 to $275 MM guidance

$28.6

$40.3

$57.8

$18.9

$32.5

$21.6

$17.6

$21.8$18.0$46.2

$17.0 $11.3

$0

$20

$40

$60

$80

$100

$120

FY-11 FY-12 FY-13

Discount Opex + G&A Cash tax + Royalty Post-tax cash margin



OPERATIONS OVERVIEW

Mike Buck, COO




GREATER BUALUANG

G4/50

B8/38




0

10

20

30

40

50

60

70

80

YE2007 YE 2008 YE 2009 YE 2010 YE 2011 YE 2012 YE 2013

2C

2P

Cumulative Production

0

2

4

6

8

10

12

14

16

2C Resources

2P Reserves

Historical

BUALUANG

CONSISTENT STRONG RESERVES AND PRODUCTION GROWTH

Reserves trebled since first production in 2008 Originally estimated to contain 15 MMbo

Undergone multiple reserve upgrades since start up, currentestimated ultimate recovery (2P + 2C) of c. 70 MMbo

YE 2013 increase in 2C (129%) will drive next phase of growth

Field has outgrown initial development concept of one WHPand FPSO

Bravo platform installed in 4Q 2012 – Greater production capacity

Bravo provided 16 additional well slots to drive productiongrowth, 11 wells drilled in 2013

New production range 11,000-14,000 bopd (up from 7,000-8,000 bopd)

2 year rig contract for Atwood Mako until Sept. 2014

Drilling and completing horizontal producers in c. 19 days,average cost c. US$8 million

Adding more slots and drilling dual lateral wells in 2014 onBravo

Additional investment for 2C exploitation is entirelydiscretionary but the prize is extremely valuable and theinvestment is fiscally efficient

2P and 2C production profile

O i l ( M b o p d )

Source: Historical (2008-2013), 2P Reserves (2014-2025) RPS Reserves

Report YE2013.2C Resources (2016-2025) Company

R e s e r v e s ( M M b o e )

Evolution of reserves and resources




BUALUANG’S RESERVOIRS

Exploitation of new reservoirs underway

T4.1 was the sole target of producersdrilled from 2008 to 2012

First T2 producers in 2013 significantlyout-performed expectation

First East Terrace T4.1 production alsobetter than forecast

T2, T5 and T3 to be targeted in 2014 New reservoirs identified during the

Bravo drilling campaign in T4.o, 4.2,4.4, 4.5

Targeting 2C resource to 2P reserveconversion in 2014

FEED studies taking place todetermine needs

Project sanction in mid 2014 Start production through new

facilities in 2016

Bualuang’s reservoirs




BRAVO DEVELOPMENT DRILLING

Hyde

Park

Regent’s

Park Old

Street

BuckinghamPalace

SalamanderOffice

Drilling performance setting new standards

Extended reach horizontal drilling to 3500m measureddepth with vertical depth of only 1100m

Wells steered to targets with accuracy of a few metres

Tortuosity of some wells amongst highest worldwide Wells are drilled, completed and put on production in 19

days or less

Dual lateral completions to be employed to give tworeservoir drains through one slot. 5 planned in 2014

Slots to be added to Bravo in 2014 to accelerate productionof some of the newly certified 2C resources




BUALUANG

DRIVING LONG TERM OPERATING COSTS DOWN

New infrastructure to reduce opex by US$20-25 million p.a. Power and processing modules installed on Bravo. Hook up in

progress

Release of Rubicon Vantage FPSO and replacement with lowercost FSO in 3Q’14

10 [+5] year FSO lease signed with Teekay, vessel arriving in June

Reduction in operating costs through crude burning powergeneration and lower FSO day rate

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016

O p e x ( U S $ m i l l i o n )

Source: RPS Reserves Report, 8 March 2013

Bualuang field operating cost forecast

Bravo Modules installation

FSO conversion




GREATER BUALUANG FORWARD PLAN

2013

129% increase in 2C resources certified at year end

More wells required from a new platform or platforms

2014

FEED underway

Expect to select platform design and sanction project by

mid year

A significant portion of 2C resource will then move to 2Preserves

Switch to FSO operations in 3Q with big savings in opex

2015

Platform construction

2016 Platform installation and production in 1Q

Drilling throughout the year

Heavy lifting at Bualuang




G4/50 EXPLORATION STATUS

AbutmentHanging-wall Fault & Dip

Basement

Stratigraphic

Prospect Structural Type AnalogueMean Resource

(MMbo)Chance of

Success

Hua HinFault & Dip

Bualuang 25 1 in 3

Yala (A,B,C & D) Abutment Untested 25* 1 in 4

Chang MaiHanging Wall /

AbutmentBua Ban,Manora

40 1 in 3

Sukhothai Fault & Dip Bualuang 25 1 in 3

Western Basin

Partial relinquishmentcompleted

All high graded areasretained

EIA application inprocess

20 drilling locations

Drilling anticipated in2014 Schematic section across western basin

* A,B,C and D are each 25 MMbo




GREATER KERENDAN

North East Bangkanai PSC

Kerendan

West Bangkanai PSC




WEST KERENDAN

SIGNIFICANT UPPER BERAI DISCOVERY

GWC at 2854mTVDSS

K-7

K-8

K-1 & 6

K-4

K-2

West Kerendan-1

K-3

5000 m

Mapped closure toWest suggests Upper

Berai trap is full to spill

Kerendan and WK gasaccumulations mapped as in

communication. Supported by

pressure data from the wells

WK1 operational summary

Drilled to 4050m. Testing underway

Upper Berai

401m of gas saturation in Upper Berai,163m of pay. Potentially 2 separate gascolumns

Upper zone in communication withKerendan

Lower zone tested at 18.6MMscfd and181bcpd

313 Bcf mean certified 2C in upper gaszone with significant upside

Lower Berai

Up to 70m of interpreted gas payDiscrete gas and water zones. Detailedlog analysis underway

Tanjung

Thinner than prognosed Upper Tanjungsitting on Basement high bald of sandierLower Tanjung

8m of gas charged sands

Large Lower Tanjung potentialonlapping the high




Planned SecondUpper Berai DST

First Upper Berai DST18 MMcfd & 183 bcpd

10 km

KERENDAN FIELD CROSS SECTION




NW SE

10 km

Depth inmeters

1,000m

2,000m

3,000m

4,000m

Jupoi Prospect

Basement

Kerendan- 7West

Kerendan-1

Top Upper Berai

Intra Upper Berai

Lower Berai

Lower Tanjung

Upper Tanjung

GREATER KERENDAN REGIONAL SETTING

AND FOLLOW UP POTENTIAL

Upper Berai Carbonate reservoir developed on long standing Basement high

7 out of 8 wells drilled produced gas from Upper Berai Follow up Berai potential in W Bangkanai PSC. Leads identified Lower Tanjung absent at WK but thickens off crest. Prospective under Kerendan field Jupoi is a big, shallow Lower Tanjung prospect




COMMERCIALISING GREATER KERENDAN

Kerendan gas field 120 Bcf proved reserves. 160 Bcf contingent resources

Development on-going providing feedstock for new buildlocal power generation with GSA for 20MMscfd

4 production wells tested at 40 MMscfd

Gas processing plant complete in 4Q 2014

West Kerendan discovery

313 Bcf of contingent resource already certified

Plan to incorporate into Kerendan PoD

Sufficient 2C resource to fill power plant up to 70 MMscfd

PLN Kerendan power plant can take all the initial production

PLN building 155 MW gas engine plant with upgrade to350 MW in 2016

Power plant construction by Wärtsilä and local partner

Commissioning and start up of first phase in 4Q 2014

Gas Sales Agreements

Price increase to existing GSA to restore economicsaffected by delay and cost increase

Second GSA to fill the plant capacity from resourcesalready discovered

Power line transmission network

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

2 0 1 4

2 0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

2 0 1 9

2 0 2 0

2 0 2 1

2 0 2 2

2 0 2 3

2 0 2 4

2 0 2 5

2 0 2 6

2 0 2 7

2 0 2 8

2 0 2 9

2 0 3 0

West Kerendan 2C 2C Resources 2P Reserves

M M

s c f d

2P and 2C production profile

West Kerendan 2C Kerendan 2C Kerendan 2P




MALAYSIA

PM-322




MALAYSIAN COUNTRY ENTRY, PM322 A GOOD STRATEGIC FIT

Proven hydrocarbon system

Port Klang-1 oil discovery drilled by Sun Oil, 1991

Found excellent quality Pematang source rocks

Early syn-rift Pematang sandstone reservoir

Initial assessment of recoverable volumes c. 30 MMbo

Lightly explored area

Only 6 wells drilled in Malaysian sector of Melaka Strait

Extension of the prolific Central Sumatra basin

Salamander has an option to sign adjacent acreage inIndonesia on the same play

Work programme

3D seismic in 2014/15

One commitment well in 2016 but prospect inventory hasnumerous targets already identified

Geology, drilling conditions and target depths similar toBualuang

Running room in Malaysia which has many undevelopeddiscoveries

20,000 km2 block in under-explored Melaka Strait

N. SumatraBasin

C. SumatraBasin




NORTH KENDANG

RE-DRILL PREPARATIONS

700m

Y

X

Z

North

SSW NNE NW SENorth Kendang-1 and 2

BT45 Top

BT45Bt tm

BT65 Top

Seq

BT80

North Kendang

High

BT65

Lobe

Rabab Toe

Thrust High

TD Kick

Zone

BT80Lobe

?

?

Base Canyon

Reflector

+400m canyon f i l l

sect ion below TD

kick depth

A NK1 had high pressure wet gas kickfrom Upper Miocene

Well control insurance claim approved– $16 MM received to date– Re-drill insurance will pay for new

well to kick point

Rig due in June 2014. New casingprogramme and Managed PressureDrilling to deal with high pressures

Risks reduced by NK1: source, charge,trap all proven, reservoir developmentunknown

Resource Potential: BT65 channel 40 – 140 – 300 Bcf. BT80 channel 120 – 460 – 1,000 Bcf



SUMMARY

James Menzies, CEO




SUMMARY

FY2013 production average production rate 14.2 Mboepd, up over 30%

Significant increase in resources added through the drill-bit to 121.3 MMboe, up 48%

Bualuang development continues, Kerendan expansion through West Kerendan discovery

Excellentprogress across

the portfolio

Financialsreflecting benefits

of strategy

Focus on near-termcommercialising

resources

Post-tax cash flow up 90% to $300.3 MM

Cash margins continue to improve, FY2013 $57.76/barrel up 44%

Re-structured balance sheet, YE2013 cash of $265 MM

Forecast 2014 production rate 13 – 16 Mboepd

Key milestones Bualuang Charlie sanction; Expanded Kerendan PoD & further GSA

Delivering over 20 Mboepd on 4 year plateau from 2017

Self-funded

2013 Resource Adds Through Drill Bit Success, 2014 Focus On Commercialisation




IR CONTACT

Geoff CallowHead of Corporate Affairs

Tel: + 44 (0)20 7432 2680Email: geoff.callow@salamander–energy.com

www.salamander-energy.com

@smdrenergyplc

http://www.salamander-energy.com/






APPENDIX





TAX RECONCILIATION (NOTE 9)

FY 2013 FY 2012

PBT 47.3 10.8

Adjustments:

UK losses 25.4 42.8

SRB 91.2 57.6

Non-allowable exploration costs 103.2 18.4

Other items 67.1 16.6

Adjusted PBT 334.2 146.2

Applicable tax rate 50% 50%

Total tax charge 167.1 73.1




THAILAND - KHORAT PLATEAU

E5-NEU-1

L15/43

L27/43




SINPHUHORM

RECOGNISED UPSIDE YET TO BE PURSUED

Hess THAILAND (Operator) divesting of asset

Hess has not been an aggressive operator

Upside potential on the field has not been chased

Sales process ongoing, expected imminent conclusion

Anticipate that new operator will invest in the asset to pursue the upside

Potential reserves and production growth

Drilling in L15/43 proves field extends into adjacent Block

Sinphuhorm East-1 tested at in excess of 50 MMscfd proving theextension of the field into L15/43

Salamander has a 27.2% interest in L15/43 so equity interest in SinphuhormField expected to increase

Well was located based on 3D seismic acquired in 2011 and demonstratesthe ability to target productive zones in the reservoir based on seismic

Uncertainty remains as to GWC – upside case could potentially doublefield size

SPHE-1ST




Bangkok

Sattahip

DONG MUN

GAS DISCOVERY APPROACHING COMMERCIALISATION

Block L27/43Dong Mun field development

Successful appraisal well DM3ST in 2012

Production area approved

Operator estimates Dong Mun will produce at 20mmcf/d for 10years but with potential to expand and extend

3D seismic shot in 2013

Aiming for first gas in 2016

Production plan submitted

Contractors tendering for FEED studies

GSA negotiations underway

Salamander Working Interest 27.2% (1)

Ownership of Dong Mun APICO (100%, Operator)

Net 2C Resources (RPS, 01/04/13) 4.1 MMboe: 24.6 BCF

First production Est. 2016

Expected plateau (2016-2028) Net c. 5.4 mmcf/d

L27/43

(1) Interest held through 27.2% stake in APICO who own 100% working interest in Block L27/43

salamander bualuang platform 3

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