Seascape Energy on track with Block 2A farm-out
By Josh White
Date: Thursday 06 Feb 2025
(Sharecast News) - Seascape Energy Asia said in an update on Thursday that it remained on track to complete the farm-out of a 42.5% interest in the Block 2A production sharing contract to Inpex Corporation during the first quarter of the year, having secured all necessary regulatory approvals.
The AIM-traded firm said that on completion, it would retain a 10% interest in Block 2A, maintaining exposure to the Kertang prospect, which holds an estimated 1.7 billion barrels of oil equivalent at no cost to the company.
Following receipt of the upfront transaction consideration and reimbursement of historic costs, Seascape said it expected to hold around $12m in unaudited cash balances by the end of the first quarter.
The company said it remained focussed on cost discipline while maintaining the flexibility to pursue growth opportunities across southeast Asia, with annual corporate overheads projected at around £3m.
Looking ahead, Seascape said it expected the Kertang prospect to progress toward a formal drilling commitment by mid-2025 under the new operator Inpex.
The company said it separately anticipated that the DEWA cluster, in which it holds a 28% interest, would advance toward a detailed field development plan by year-end.
It said the development was expected to unlock 85 billion to 100 billion cubic feet of gas, with 14 million to 17 million barrels of oil equivalent net to Seascape, and targeted production by 2027.
The DEWA cluster, awarded in October, comprises 12 shallow-water gas discoveries near existing infrastructure off the coast of Sarawak, Malaysia.
Seascape said it was continuing to prioritise portfolio expansion, adding that it was actively evaluating new business opportunities, including licensing rounds in Malaysia and Thailand.
With host governments seeking to meet rising regional power demand, additional opportunities were expected to emerge, the board said.
The company added that it remained engaged in both ground-floor initiatives and potential mergers and acquisitions as it looked to materially grow its portfolio in 2025.
"Following our hard work during 2024, Seascape created a platform to pursue the excellent growth opportunities we are seeing in Southeast Asia," said chief executive officer Nick Ingrassia.
"Set against a constructive macro backdrop in the region, we are looking forward to an exciting 2025 as we seek to expand our portfolio and continue delivering value for all of our stakeholders."
At 0954 GMT, shares in Seascape Energy Asia were up 6.65% at 36.26p.
Reporting by Josh White for Sharecast.com.
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