‘Material’ portfolio expansion on Seascape’s 2025 agenda after Malaysian block farmout

Seascape Energy, an E&P company focused on Southeast Asia, has completed the sale of its participating interest in a production sharing contract (PSC) offshore Malaysia to Japan’s Inpex Corporation.

Following the farm-out of a 42.5% participating interest in Block 2A, Seascape retains a 10% participating interest in Block 2A through its wholly owned subsidiary, Topaz Number One Limited. The remaining partners are Petronas (40%) and Petroleum Sarawak Exploration & Production (PSEP) (7.5%).

The E&P firm believes this provides its shareholders with material exposure to the Kertang prospect containing around 1.7 billion barrels of oil equivalent (boe) at zero cost.

Now that the transaction, which was announced in December 2024, has been finalized, the company estimates it will have unaudited cash balances of approximately $12 million at the end of Q1 25.

Nick Ingrassia, CEO of Seascape, said: “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.”

Seascape added that it remains focused on new business activity by actively pursuing growth opportunities through ground-floor initiatives and potential mergers and acquisitions, hoping to “materially” expand its portfolio during the year.

According to the E&P company, the transaction entails full, uncapped carry for its retained interest through the remaining exploration phase which includes one firm wildcat well and one contingent appraisal well, subject to a commercial discovery.

The $10 million cash consideration has been received in full, along with the reimbursement of historic costs of approximately $1 million. Additionally, a further contingent cash consideration of $10 million is payable on a commercial discovery.

Block 2A is located in the North Luconia hydrocarbon province offshore Malaysia, which recently launched a new licensing round.

The block covers approximately 12,000 square kilometers in water depths between 100 and 1,400 meters. It contains the Kertang prospect, whose giant scale was confirmed in late June.

The E&P player says it was covered by “high-quality,” wide-beam 3D seismic shot by CGG in 2015 and exhibits direct hydrocarbon indicators (DHIs) including an overlying gas cloud feature and amplitude brights. Bintulu LNG, described by the firm as one of the world’s largest LNG facilities, is located onshore in Sarawak.

Meanwhile, Inpex introduced a series of organizational and branding changes intended to strengthen its business framework in line with the new corporate strategy for the next ten years last month. Several units were renamed, some were restructured others, while others were discontinued. The changes are meant to help implement the new Inpex Vision 2035.