Analysts said that Ophir could buy the company cheap as Spain's Compania Espanola de Petroleos (CEPSA) walked away. CEPSA had been considering making an offer of 121 pence in cash and one contingent value right of up to 24 pence per share for Salamander.CEPSA said on Monday the consortium had decided not to proceed for the deal.
Ophir's offer offered 0.5719 shares for every Salamander share.
The deal would give Ophir an oil field already in production in Thailand and a gas development in Indonesia.
According to sources, the offer is conditional on Salamander canceling its agreement with Malaysia's Sona Petroleum Bhd to sell 40 percent of two oil and gas blocks in the Gulf of Thailand. SONA had agreed to pay a consideration of US$280 million in cash plus working capital adjustments.
Ophir assets are scattered throughout African waters, however, the company has recently acquired assets in Myanmar and Indonesia.