Salamander Energy Plc (SMDR), a United Kingdom oil explorer active in Asia, said it is focusing on three fields in Thailand and Indonesia as it bolsters production and steps up exploration.
The London-based company said profit margins will rise along with production this year. The company reduced debt and raised cash in a share sale last year to fund its program.
It said operating cash flow per barrel of output climbed to US$40.22 last year compared with $28.56 in 2011. Profit before tax plunged to $10.8 million from $112.6 million a year earlier after the company sold older, less profitable producing assets.
"Our cash margins will grow again," Chief Executive Officer James Menzies said in a telephone interview. "We also see a rise in production, so cash generation is growing considerably."
The company said production will rise to between 12,500 and 15,500 barrels of oil equivalent a day from 10,800 barrels in 2012. The shares rose as much as 1.8% and traded up 0.9% at 201.2 pence as of 8.47am in London.