Salamander Energy

2007 Interim Results Presentation

27th September 2007

2

Salamander Energy

Forward-Looking Statements

This presentation may contain forward-looking statements

and information that both represents management’s current expectations or beliefs concerning future events and are subject to known and unknown risks and uncertainties.

A number of factors could cause actual results, performance or events to differ materially from those expressed or implied

by these forward-looking statements.

3

Salamander Energy

2007 Interim Results Presentation

1. Introduction & Highlights James Menzies

2. Financial Review Nick Cooper

3. Current Activity Mike Buck

4. Exploration Portfolio, Summary & Outlook James Menzies

4

Salamander Energy

Salamander Energy plcPure Southeast Asian E&P

Ensign 41 Rig, Phu Horm Field, Thailand

Overview

� Main board listed on the LSE

� Market capitalisation circa $400 mm

� 2P reserves of 42.3 mmboe (YE06)

� 2007 forecast production circa 8,000 boepd

� Base plate of stable, long life production

� Broad spread of exploration & appraisal assets

� Disciplined allocation of capital across both discovered reserves and exploration

Lao PDR

Savannakhet 95% (E)

Thailand

Phu Horm 9.5% (P&D)

L15/43 27.2% (E&A)

L27/43 27.2% (E&A)

L13/48 16.3% (A)

Indonesia

ONWJ PSC 5% (P&D)

SES PSC 5% (P&D)

Vietnam

DBSCL01 100% (E)

Philippines

SC41 35% (E&A)

Indonesia

Bontang PSC 70% (E&A)

P: in production

D: under development

A: appraisal

E: exploration

Simenggaris JOB 21% (E&A)

H1 2007 Addition

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Salamander Energy

2007 Interim ResultsHeadlines

Highlights

� Maiden profit of $3.8 million (H1 2006: loss $2.2 million)

� Revenues of $32 million (H1 2006: $8.8 million)

� Operating cash flow of $14.1 million (H1 2006: $1.7 million)

� Production increased by 175% to 7,700 boepd (H1 2006: 2,800 boepd)

� Portfolio expanded with addition of four new licenses

� Phu Horm field established as a reliable producer averaging 88 MMscfd

� Strong balance sheet, period-end net cash position of $129.6 million (2006: net debt of $36.1million)

Current Activity & Outlook

� Appraising five discoveries targeting in excess of 50 MMboe of reserves

� Pre drill activity continues ahead of high impact 2008 exploration drilling programme targeting c. 500 MMboe net unrisked resources

� Increased gas sales from ONWJ and SES PSCs

6

Salamander Energy

1H 2007 1H 2006 FY 2006

Production (WI) mboepd 7.7 2.8 4.4

Realised prices

- Oil $/bbl 58.95 64.80 61.33

- Gas $/mscf 3.59 2.90 3.05

Revenue $mm 32.3 8.8 31.6

EBITDA $mm 20.5 2.3 6.0

Post tax profit / (loss) $mm 3.8 (3.2) (19.6)

EPS $/share 0.04 (0.09) (0.48)

Cash $mm 154.9 54.2 152.6

Gearing % 8 60 9

Interim Financial Highlights

Production up on half year and climbing to approx. 8.0 mboepd for the full year

Higher gas realisations with Phu Horm contribution, new Indonesian GSA’s

Revenues up 260%

Maiden profit in 1H 2007

Cash position comparable to end 2006, despite new investments

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Salamander Energy

$mm 1H 2007 1H 2006 FY 2006

Revenue 32.3 8.8 31.6

Cost of sales (21.1) (6.2) (23.8)

Gross profit 11.2 2.6 7.8

Exploration expenses (3.1) (0.9) (5.3)

SG&A- General (0.7) (2.0) (2.7)- Share Based Payment (0.1) (1.4) (9.5)- IPO Fees (3.1)

Operating profit 7.3 (1.7) (12.8)

Interest revenue 3.9 1.5 2.5

Interest expense & other (1.2) (1.3) (4.2)

Pre-tax profit 10.0 (1.5) (14.5)

Tax (6.2) (1.7) (5.1)

Post-tax profit 3.8 (3.2) (19.6)

Interim Income Statement

Includes 1H 2997 amortisation of $7.21/boe

Exploration includes pre-licence expenditures. No write downs for the period

Full period contribution from producing assets driving positive operating profit

ONWJ, SES taxed at 41.5%; PH at 50%. Effective tax rate 54% post non-deductables, plus $0.9mm deferred tax charge

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Salamander Energy

$mm 1H 2007 1H 2006 FY 2006

Cash b/forward 152.6 13.1 13.1

Net operating cash flow

4.8 (2.2) 7.7

Capex- Production, development (8.7) (61.2) (90.4)- Exploration, appraisal (15.2) (4.6) (7.4)

Interest revenue 4.0 1.5 2.5

Interest expense (1.0) (0.8) (5.8)

Net proceeds from new equity issue 18.5 19.6 212.2

Net proceeds from new debt raising - 88.8 20.6

Cash c/forward 154.9 54.2 152.5

Interim Cash Flow Statement

1H 2007 operating cash flow suppressed by delayed lifting of crude in June 2007

2007 full year capexforecast raised to $75mm after Simenggaris, SC41

IPO greenshoe closed in January 2007, net of IPO fees

Cash position comparable to end 2006, despite new investments

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Salamander Energy

$mm 1H 2007 1H 2006 FY 2006

Fixed assets

- Exploration, appraisal 27.2 5.0 9.1

- Producing,development 122.3 94.8 121.9

- Other 0.7 0.3 0.3150.2 100.1 131.3

Cash 154.9 54.2 152.6

Debtors / (Creditors) 3.6 (0.5) (7.3)

Long term debt (25.7) (92.0) (25.7)

Deferred tax liability (0.9) - -

Net assets 282.1 61.8 250.9

Interim Balance Sheet

Thailand, Indonesia, Philippines

Thailand (Phu Horm), Indonesia (ONWJ, SES)

1H 2007 reflects delayed lifting of crude in June 2007

SMBC facility. Producing assets have additional debt capacity

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Salamander Energy

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2006 Average H1 '07 Average 2007 Outlook

Pro

duction R

ate

(m

boepd)

Thailand Gas & Liquids

Indonesia Gas

Indonesia Liquids

Production GrowthAverage production forecast to rise by more than 80% in 2007

� 2007 production forecast 49%

liquids

� Indonesian gas fixed price,

average $2.90/mcf in 2006

� Phu Horm gas indexed to oil,

averaging over $5/mmBtu

� Volume growth from SES &

ONWJ PSCs, new contract

>$3.60/mcf

� Phu Horm volume growth, back

filling Nam Phong field decline

� Current production rate of c. 8.0

mboepd

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Salamander Energy

Khorat Basin, Greater MekongLeading acreage position: production, development, appraisal & exploration

Block L27/43 (27.2%)

Numerous pinnacle reef structures

Dong Mun discovery

150 Bcf mean/250 Bcf upside potential

Spud appraisal wel in Oct ‘07

Block L15/43 (27.2%)

Southern extension of Phu Horm field

Phu Horm South well scheduled Dec ‘07

Phu Horm Field (9.5%)

Average production 88 mmscfd

PH-10 completed as producer

PH-6 likely to be commercial

Three producing wells see 800-900 Bcf

Block L13/48 (16.2%)

Si That discovery, Phu Horm analogue

Best estimate 1 Tcf

2D seismic Q4 ’07

Appraisal well 2008

Savannakhet PSC, Lao PDR (95%)

Two x 1 Tcf prospects

One liquids prospect c. 150 mmbo

Extensive 2D seismic

Two wells in 2008

Nam Phong Power Plant

710 MW

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Salamander Energy

Khorat PlateauOperational update, Phu Horm field

� PH-6

− Drilled underbalanced, saw gas down to TD

− Valve failure during drilling

− Acid-frac scheduled for Q1 ’08

� PH-7

− Drilled underbalanced ,did not encounter fracture network

� PH-10

− Completed as a producer, 10 MMscfd

− Drilled conventionally

� PH South

− Tree clearance finished, site construction well underway

− Spud immediately post completion of DM-3 well (Dec ’08)

SPH-ASPH-ASPH-A

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Salamander Energy

Under Balanced Drilling

Bit Change –Deployment Valve not working : well killed / damaged

Conventional Drilling (over balanced)

Khorat PlateauPhu Horm-6 Drilling Data

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Salamander Energy

1800

2500

2200

2300

1900

2000

2100

2800

3300

2600

3100

3000

2900

2700

2400

3200

1833

2018

1873

2188

2037

2555

2221

2718

2593

2715

3043

3244

TD 3295TD 3245

Huai Hin Lat Fm

Pha N

ok Khao Fm

Up Lim

estone Unit

Pha N

ok K

hao

Fm

Mid

Dolo

mite U

nit

Pha N

ok K

hao

Fm

Low

er Lim

estone U

nit

Si T

hat F

orm

atio

n

Cla

stics U

nit

Si T

hat

Form

atio

n

Lim

esto

ne U

nit

Loei G

roup

1839

1934

2032

2156DST #1

DST #2A

2193DST #3

2279

DST #2

DST #3

2527

2780

2815

3221

PH-1 PH-2SPH-A PH-5 PH-3 PH-4

TD 2462 TD 2463

TD 2178

TD 2037

GDT: 2590m (Pressure data)

2146

2203

1853

?

prognosis

2201

2442

?

Gas show/flow during drilling

DST flowed gas with no water

DST flowed gas and water

DST flowed water

GDT: 2156m(test at PH-1)

GDT: 2403m (Temp Log PH-5)

PH-10

TD 2342

1929

2070

PH-6

TD 2480

PH-7

TD 2603

193

5

1908

1988

1853

1896 1942

2037

1837

1876

24932476

South North

Khorat PlateauPhu Horm field: north - south cross section

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Salamander Energy

Khorat Basin, Greater MekongAppraising the Dong Mun discovery, L27/43 Northeast Thailand

� Scheduled spud October 2007

� Carbonate platform & reef

� DM-1 tested gas at 5+ MMscfd

� 150 Bcf mean, 250 Bcf gross upside potential, Salamander interest 27.2%

� Multiple follow up opportunities on the block

� 45 km from the Nam Phong power plant

Top Pha Nok Khau Fm

Depth Structure

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Salamander Energy

East KalimantanTutung appraisal, Bontang PSC

Ensco 1 barge-mounted rig

� 2D transition zone seismic acquired, processed & interpreted

� Tutung Alpha 1 location selected circa 1.2 km North of discovery well

� 40 – 100 Bcf potential

� Ensco-1 contracted

� Spud December 07/January 08

Near Top Reservoir

Depth Structure

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Salamander Energy

2007 Appraisal ProgramFive fields & discoveries to be appraised targeting > 50 mmboe resources

1. South Sembakung

− Tested 12.7 mmscfd

− 125 Bcf & 3 mmbc potential

2. Manik− Stratigraphic discovery

− 44 mmbo mean, 90 mmbo upside

3. Dong Mun

− 150 Bcf mean, 250 Bcf upside− 45 km from gas plant

4. Phu Horm South− Significant step out from Phu

Horm field

− Additional 180 Bcf net to Salamander in success case

− Plus unitisation upside

5. Tutung

− Gas-condensate

− 100 Bcf upside potential

Tutung Discovery

Bontang PSC (70% operated)

One well firm, plus one contingent

South Sembakung Discovery

Simengarris JOB (21%)

Two wells

Dong Mun Discovery

L27/43 (27.2%)

One well

Manik Discovery, SES PSC (5%)

Three wells

Ensign 16

Land Rig

Bohai IV

Ensco 1

Drilling Barge

Apexindo 2

Land Rig

Phu Horm South

L15/43 (27.2%)

One well

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Salamander Energy

2008 Exploration CampaignSix to eight high impact wells targeting > 10x 2P reserves

Lao PDR

Savannakhet PSC (95%, operated)

2 exploration wells 2008

3 large prospects. 1 Tcf+, 150 mmbo

Oil & gas potential

Philippines

SC41 (35%)

2 exploration wells 2008

9 leads / prospects

Oil recovered on block

50 – 150 mmboe each

Indonesia

Bontang PSC (70%, operated)

2 exploration wells 2008

10 leads / prospects

20 mmboe+ features, gas & liquids

Vietnam

DBSCL1 (100%, operated)

Exploration drilling 2008/9

Oil –prone graben

Thailand

L13/48 (16.2%, jointly operated)

Appraisal drilling 2008

Si That feature

1 Tcf mid case

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Salamander Energy

PhilippinesSC41, Sandakan Basin, East Kalimantan

� Under-explored basin offshore Borneo, favourable economic terms

� Salamander 35%, large area (4820 km2), proven petroleum system

� Completed 750 km2 3D seismic ahead of 2008 exploration drilling

� Nine leads already identified along foldbelt trend: expected size range 50 – 150 MMboe per feature

� Wildebeest-1 recovered 38.2 degree API oil from two zones

SW NE

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Salamander Energy

Cuu Long Delta River Block 1, VietnamOverlooked Cuu Long Basin analogue

1970’s Vintage Seismic, DBSCL-1 PSC

Modern Seismic, Cuu Long Basin

Basement HorstBlock

Half GrabenHalf Graben

Same vertical scale

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Salamander Energy

Forward Programme2007 appraisal drilling ahead of extensive 2008 exploration campaign

Lao PDR

Philippines

Vietnam

Tutung

SS-4

Indonesia Bontang A+ B

IndonesiaSouth Sembakung 3D

Phu Horm 3D

Savannakhet A & B

SC41 A & B

Vietnam

Phu Horm South

Dong Mun

Cuu Long Aero-Mag

DBSCL1

Si That

Savannakhet 2D

Cuu Long 2D

L13/48 2D

Bontang 3D

Exp

lora

tion

Dri

lling

Appra

isal

Dri

lling

Dev

'mnt

Dri

lling

Thailand

Indonesia

Thailand

Indonesia

Lao PDR

PH-10

2007

Dat

a Acq

uisiti

on

Thailand

Q4Q3

South Sembakung

2008

Manik

South Sembakung

Tutung

PH-6 Acid Frac

H1 07 2007 Forecast

� Exploration & appraisal capex $22.1 mm $55 mm� Production & development capex $8.3 mm $17 mm

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Salamander Energy

Profit & Cash Flow Underpinning Broad E&A PortfolioFully funded, highly active programme for 2H 2007 & 2008

� Maiden Profit

� Increasing Revenues & Cash Flow

� Expanding the Asset Portfolio

� Material Appraisal Programme

Underway

� Preparing for High Impact 2008

Exploration Programme

� Fully funded to carry out work

programme

� $3.8 MM up from $3.2 MM loss

� Revenue of $32 MM, operating cash flow 0f $14.1 MM

� Four additional license interests added during H1 07

� Financial capacity to grow the business

� Five fields and discoveries, targeting c. 53 MMboe of

resources unrisked

� 6-8 wells in Indonesia, Philippines, Vietnam, Thailand

and Lao PDR, mostly operated, high equity stakes

� 500+ mmboe of resources unrisked

� Good visibility on regional deal flow