Seascape Energy Asia Plc · LSE:SEA
Seascape Energy Asia — Investor Presentation (December 2024)
29 slides from Seascape Energy Asia's investor presentation, December 2024
Slide 1: Block 2A Farm Out & Financing
December 2024 Block 2A Farm Out & Financing creating a platform for growth 1
Slide 2: Disclaimer
Disclaimer This Presentation and the information contained herein, including any oral narration that may accompany the presentation (the “Presentation”) has been provided solely for information purposes and does not purport to be comprehensive or contain all the information that may be required by r
Slide 3: Disclaimer (cont’d)
Disclaimer (cont’d) This Presentation is limited to and intended for distribution only to persons who are persons in the United Kingdom who are “qualified investors” within the meaning of Article 2(e) of the UK Prospectus Regulation (Regulation (EU) 2017/1129, which is part of UK law by virtue of th
Slide 4: Presenters
Presenters Key executive team members James Menzies Nick Ingrassia Pierre Eliet Executive Chairman Chief Executive EVP Corporate & Business Development, Country Chair Malaysia • Founder/CEO of SE Asian-focused • BD Head of SE Asian-focused • Broad range of technical and Salamander Energy Salamander
Slide 5: Taking advantage of SE Asian industry dynamics
Taking advantage of SE Asian industry dynamics Seascape at the forefront of the rise of the regional, mid-cap E&P operator Near-term: opportunity to build a substantial Malaysian portfolio • Competitively advantaged position, limited regional peer group • Quality assets of material scale with existi
Slide 6: Technically driven, well positioned
Technically driven, well positioned 2 Block 2A One of very few Southeast Asian-focused E&Ps Kertang Discovered Resources High-Impact Exploration DEWA PSC (SEA 28%) Block 2A PSC (SEA 10%)4 • Portfolio of 12 gas fields • Giant ‘Kertang’ exploration prospect • Gross estimated GIIP1: • Gross Mean Prospe
Slide 7: Farm-out and financing bring financial strength
Farm-out and financing bring financial strength Seascape positioned for growth Cost cutting during H2-24 has reduced cash burn to ~£250k per month • Includes forecast DEWA spend • Minimal Block 2A spend pre-close of farm-out Completion of farm-out targeted for end Q1-25 • Approval required from regu
Slide 8: Farm Out of Block 2A
J SEA SENS CARE ENERGY ASIA Farm Out of Block 2A
Slide 9: Transaction highlights
Transaction highlights Upfront cash, contingent cash, uncapped drilling carry and top tier partner • Seascape retains material, 10% interest in Block 2A Significant retained exposure • Prospective Resources net to Seascape of 166 mmboe • Giant Kertang prospect is drill ready, no further seismic
Slide 10: Farm-out creates fully-funded platform
Farm-out creates fully-funded platform Successful 2A farm-out marks important corporate milestone Farm-out of Block 2A agreed with INPEX Corporation Block 2A Farm Out Valuation2 Interest acquired by INPEX 42.5% • 10% interest retained (42.5% divested) Interest retained by Seascape 10.0% • Full, unca
Slide 11: Transaction structure & mechanics
Transaction structure & mechanics Details matter Decision to divest a larger-than-anticipated stake (42.50% vs 36.75%) • Significant global interest in farm-out process Step I created a strong competitive dynamic • Large upfront cash element allows reinvestment into portfolio and funding for growth
Slide 12: A committed partner with significant presence
A committed partner with significant presence INPEX CORPORATION Japan’s largest exploration & production company 630,000 boepd production (FY23), ~10% of Japan’s annual energy consumption Operator of two, major regional LNG projects (Ichthys, Abadi) Regional presence dating back to 1972 Source: INPE
Slide 13: Recent deals bring significant value uplift
Recent deals bring significant value uplift Exposure to unrisked value multiples of the current share price Seascape implied value from recent TotalEnergies transaction1 (£/share) £2.50 £10.50 £10.00 TotalEnergies $1.4 bn purchase (‘24) of gas-focused, £2.00 Sarawak-focused SapuraOMV = ~$4/boe1 £1.5
Slide 14: Assets
J SEA SENS CARE ENERGY ASIA Assets
Slide 15: Block 2A (Kertang)
Block 2A (Kertang) Block 2A Significant upside following successful farm-out (10%)1 Kertang PSC signed in Feb-23 Block awarded with high-quality • Large block (12,000 km2) 3D seismic at nil cost • Water depth 100-1,400m • Prior wells drilled on vintage 2D seismic • Low commitment Giant, well-defined
Slide 16: Kertang: Malaysia’s largest undrilled structure?
Kertang: Malaysia’s largest undrilled structure? Sarawak analogue comparisons a potential 1.7 billion boe giant ERCE Gross Mean Prospective Resources1 Gas (Bscf) NGL (Mmbbl) CoS (%) A A’ Cycle V/VII AA2 514 14 27% 3 Cycle V/VII AA1 143 4 24% amplitude brightening A A’ 3 Cycle V/VII 2 Cycle II/III 3,
Slide 17: Kertang: significant structural upside
Kertang: significant structural upside Strike section demonstrating over 200 km2 of closure A KERTANG 4-WAY CLOSURE EXTENT B gas cloud amplitude brightening in indicating charge Cycle V/VII turbidite play Prolific coal source rocks in surrounding grabens Max extent of Kertang 4-way closure Kertang P
Slide 18: Immediate portfolio of gas fields
Immediate portfolio of gas fields DEWA represents a huge opportunity for Seascape Block 2A Initial focus fields Additional gas fields D30 DANAU DEWA contains 12 gas fields & discoveries • Special licensing round, DEWA was ‘earmarked’ for Seascape D41 DANA 1 • Sweetened economic terms, ~50% of profit
Slide 19: Valuable award: Low-cost route to growth
Valuable award: Low-cost route to growth Simple DEWA development using existing technology Bentara Wellhead Platform Plateau production Simple development potential • Shallow water (40-50m) • 80-100 mmscfd (13-17 kboepd) • Monopod platforms • ~2,500 bcpd • Jack-up rig drilling Close to export infras
Slide 20: Summary
J SEA SENS CARE ENERGY ASIA Summary 20
Slide 21: Fully carried in one of the region’s most high-profile prospects
Fully carried in one of the region’s most high-profile prospects An exceptional farm-out deal Transaction provides Seascape with upfront cash, contingent cash, no cost exposure, upcoming test of Kertang prospect with material upside many multiples of current share price Ability to reinvest upfront c
Slide 22: Appendix
J SEA SENS CARE ENERGY ASIA Appendix 22
Slide 23: Demographics driving strong macro growth
Demographics driving strong macro growth Southeast Asia in stark contrast to Europe and North America Primary Energy Consumption Median Age2 Hydrocarbon Demand Forecast3 per Capita (GJ)1 rebased to 100 230 North America Europe 115 42 67 30 Asia-Pac Europe & UK SE Asia North America Europe & UK SE As
Slide 24: Regional activity ramp-up
Regional activity ramp-up Host governments move urgently to meet growing demand Upcoming licensing First licensing round in rounds (’24/’25)? 10 years (’24) Major ‘play opening’ discoveries in (‘23/’24) One of the largest global gas discoveries (’23) Significant gas-to-LNG giant brought onstream (’2
Slide 25: ERCE CPR Summary
ERCE CPR Summary Block 2A (Kertang) Notes 1. Unrisked mean total is not representative of the expected total from the four reservoir intervals and assumes a success case in all intervals. 2. ERCE’s volumes assume a gas case only. ERCE allocates a phase risk of 90% gas (vs oil 10%). 3. COS represents
Slide 26: Block 2A PSC overview
Block 2A PSC overview Mechanism and terms PSC Block 2A Royalty Revenue OIL GAS revenue x 10% Royalty 10% At and Below THV Above THV At and Below THV Above THV Cost Oil / Cost Contractor R/C Index Profit Split Profit Split Profit Split Profit Split Gas Ceiling PET: Cont.* PET: Cont.* PET: Cont.* PET:
Slide 27: DEWA SFA PSC overview
DEWA SFA PSC overview Mechanism and terms Revenue Royalty [Sales liquids x price] + minus [Liquids revenue x 10%] + [Sales gas x price] [Gas revenue x 10%] Post royalty revenue Contractor State share ‘α’ Government take Negotiated to 10% share ‘β’ Negotiated to 90% 100% costs [opex, capex, abex] Inc
Slide 28: Strong forecast gas demand
Strong forecast gas demand Sarawak production vs MLNG capacity bcfd Future development supported by ullage at Bintulu LNG 5.0 4.5 MLNG capacity + domestic demand Kertang plateau production potential of 0.8-1.2 4.0 MLNG capacity 3.5 bcfd (130-200 kboepd) 3.0 2.5 FPSO with gas delivered directly to Bi
Slide 29: seascape-energy.com
seascape-energy.com IR@seascape-energy.com @SeascapeEnergy Seascape Energy Asia
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