Business
Strategic Pivot to focus on Southeast Asia
Strategic Pivot to focus on Southeast Asia.
About this update from Seascape Energy Asia Plc
[{"type":"text","content":"\n\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 596/2014 AS AMENDED AND TRANSPOSED INTO UK LAW IN ACCORDANCE WITH THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (\"UK MAR\").\n \n17 June 2024\n \nLongboat Energy plc\n(the \"Company\", \"Longboat Energy\" or \"Longboat\")\n \nStrategic Pivot to focus on Southeast Asia\n \nLongboat Energy, an emerging E&P company, announces the strategic pivot of the business to focus on Southeast Asia following the sale of its 50.1% holding in Longboat JAPEX Norge AS (\"LJN\"), announced separately today.\n \nHighlights\n \n· Longboat to pivot its strategy to build its business in Southeast Asia\n· Significant industry interest in Malaysian Block 2A, farm-out process to be launched H2-24\n· Provisional award of a cluster of material, undeveloped gas fields capable of near-term development offshore Sarawak\n· LJN sale proceeds to provide working capital to run the Company through the end of Q1-25\n· Cost savings in excess of $1.25 million achieved with a streamlined board and management team\n \nRationale\n \nFollowing a detailed review of its areas of geographic operation, the board and management of Longboat Energy have made the decision to exit Norway and to focus on building a full-cycle E&P business in Southeast Asia, where it sees significantly more potential for a small company than Norway and believes its existing positioning and access to opportunities provide excellent value-creation potential for the Company.\n \nRecent structural changes to the Norwegian upstream industry have favoured an increasingly small group of very large companies with long-term investment horizons and access to low cost of capital. This has left the Company at a significant competitive disadvantage and, despite enormous effort and attempts to secure opportunities with shareholder value upside, Longboat has been unable to establish a meaningful growth platform in Norway.\n \nIn contrast, Longboat's entry into Malaysia last year coincided with a proliferation of opportunities across Southeast Asia and a positive and supportive attitude of the host governments towards small-and-medium sized companies which are now viewed as crucial to maximizing value from their maturing basins. ...