Seascape Energy, an E&P company focused on Southeast Asia, has completed the farm-out of a 42.5% participating interest in the Block 2A Production Sharing Contract to INPEX CORPORATION.
Seascape retains a 10% participating interest in Block 2A (the 'Retained Interest') through its wholly owned subsidiary, Topaz Number One Limited ('TNOL') providing its shareholders with material exposure to the Kertang prospect (gross ~1.7 billion boe) at nil cost.
Following completion of the Transaction, the Company estimates that at end Q1-25 it will have unaudited cash balances of approx. US$12 million (£10 million).
New business activity remains a priority for the Company and Seascape is actively pursuing growth opportunities through both ground-floor initiatives and potential M&A with an ambition of materially expanding its portfolio during the year.
Investor Meet Company
Nick Ingrassia (CEO) and James Menzies (Executive Chairman) will host a live presentation for investors via Investor Meet Company at 10:00 AM GMT on Wednesday19 March 2025.
The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9:00 AM GMT on Wednesday 19 March 2025, or at any time during the live presentation.
Investors can sign up for free via: https://www.investormeetcompany.com/seascape-energy-asia-plc/register-investor. Investors who follow Seascape Energy on the Investor Meet Company platform will automatically be invited.
Nick Ingrassia, CEO of Seascape, commented:
'I would like to express my gratitude towards MPM and our partners, INPEX CORPORATION, PETRONAS Carigali and Petros for moving the farm-out of Block 2A to completion so quickly. We believe the world-class Kertang prospect remains one of the largest, undrilled structures in Sarawak and we look forward to supporting the partnership in moving the prospect forward towards drilling.
'Proceeds from the Transaction provides Seascape with funding to pursue exciting growth opportunities in Malaysia and wider Southeast Asia and highlights the vital role that nimble, forward thinking, independent E&P companies have to play in the regional upstream ecosystem.'
Block 2A Farm-Out Highlights
- Full, uncapped carry for Seascape's Retained Interest (10%) through the remaining exploration phase which includes one firm wildcat well and one contingent appraisal well (subject to a commercial discovery);
- A cash consideration of US$10 million, which has been received in-full, plus the reimbursement of certain historic costs of ~US$1 million;
- A further contingent cash consideration of US$10 million payable on a commercial discovery;
Full details of the Transaction can be found in the Company's press release dated 2 December 2024.
Block 2A Highlights
Block 2A is located offshore Sarawak, eastern Malaysia in the North Luconia hydrocarbon province covering approximately 12,000 km2 in water depths between 100 -1,400 metres. Block 2A contains the world-class Kertang prospect, located across four Oligo-Miocene reservoirs, which is:
- Well-defined, large, four-way dip structural high with over 220 km2 of closure;
- Covered by high-quality, wide-beam 3D seismic shot by CGG in 2015;
- Exhibits direct hydrocarbon indicators (DHIs) including an overlying gas cloud feature and amplitude brights;
- CPR undertaken by ERCE on Kertang in 2024 assigns total gross, unrisked mean prospective resources of 9.1 TCF plus 146 mmbbl of NGLs (~1.7 billion boe);
- CPR chance of success of ~20%;
- Bintulu LNG, one of the world's largest LNG facilities, is located onshore Sarawak.
A summary of the CPR published in June 2024 can be found on the Company's website: https://seascape-energy.com/presentations-reports/.
Block 2A was originally awarded to Seascape Energy in February 2023 as part of the Malaysian Bid Round 2022 (MBR 2022) by PETRONAS Malaysia Petroleum Management ("MPM"). MPM acts on behalf of PETRONAS in the overall management of Malaysia's petroleum resources throughout the lifecycle of upstream oil and gas assets.
Source: Seascape Energy
