Seascape Energy Asia (LSE:SEA) — Interim Results

0:01 Good morning, and welcome to the SEASCAPE ENERGY ASIA PLC interim results investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged, and they can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and publish responses when it is appropriate to do so. Before we begin, I would like to submit the following poll. And I would now

0:32 like to hand you over to Executive Chairman, James Menzies. Good morning to you. Thank you very much, and good morning, everyone. Welcome to SEASCAPE ENERGY ASIA's interim results for the period ending 06/30/2024. And it's our first results under our new banner and since we have relaunched as SEASCAPE. You're going to hear this morning from myself, but mainly, you're going to hear from Nick Ingracia, who's here to my right, our CEO, and he's going to take you through most of his presentation. I will chip in when we talk about some of the assets under discussion here. But one thing I'd draw your attention to on this slide around presenters and the board is the people we have now at the top of this company.

1:22 Having gone through this pivot, we've shrunk both in terms of the number of staff, the cost base, also the board size. Our previous company, Longboat, you know, had a seven seven man board. We're down to four, which is myself, Nick. Graham Stewart is is still with us on the board as a nonexec, and, you know, he was the chairman of Longbow. We brought in Geraldine Murphy to join the board. He's been a great addition. I'm really, really happy to have Geraldine with us. Known her a long time, and, you know, she's a very good hand.

1:53 And Pierre Elliott was working with me, and Topaz has come in to SEASCAPE. You know, he runs our he's not on the board. He runs our Malaysian business and is really our figurehead out in Southeast Asia and leads the charge on a lot of stuff we're doing, particularly around Malaysia. So I've introduced myself before on these calls, but as you may know, I was CEO of Salamander where I was working with Nick in in the latter part of that the existence of that company, but has spent a long time out in Asia helping build businesses, trading assets, buying assets, developing fields, drilling wells, you name it. And I'm a geologist by background. I'll now hand over to Nick to introduce himself and take you through most of his presentation.

2:45 Thank you, James. Good morning, everyone. Welcome to our interim results. First one, I guess, in my role as CEO, and sort of the first one, as James said, under our new banner of SEASCAPE ENERGY. Quick sort of background on me. I have sort of a long history in and around the oil and gas space, both kind of as an adviser early on in my career doing banking, but then mainly as a corporate development person working at businesses such as Valiant, FARO, Longboat, and indeed Salamander, where I work closely with James towards the end of that journey. Very excited about the opportunity set ahead of us. And I think probably where we'll start is just by doing a sort of a quick recap on what's going on during the first half of the year, which has been, you know, extremely busy for us as we really sort of try to reposition the business to focus on this enormous opportunity set that we see out in Southeast Asia.

3:46 So, you know, kind of the I think it really breaks down into three elements, which is, first, we have, you know, the strategic pivot has now been completed. As James mentioned, we've got changes to the executive team and the board. The business itself is very nimble and really shrunken down to a very small board and and also kind of core team. We have completed the sale of our Norwegian entity to our partners, JapEX. That was done in absolute record time, and we were very pleased with the overall outcome there, which has then really allowed us to kind of rebrand and refocus the business on Asia with our cornerstone asset in 2A. And I think that's really where the sort of rebuilding the portfolio comes in.

4:34 So we have 2A held, and we'll come on to that, I think, in a little while, and James can take you through that. But we have a farm out underway on that. It's a world class asset, incredibly exciting, very large exploration, and it's really sort of ticking all the boxes for people. But we're also trying to build that portfolio and really trying to put some underlying value, firm value underneath the share price. And so we've got the imminent award of a new PSC in Sarawak containing multiple gas fields in it. We will talk a little bit more about that to the extent that we can, but we will be getting more we're getting very close to the signing of that, and, we'll be able to discuss it in a lot more detail very soon. And, course, we're pursuing other opportunities across Southeast Asia, both from a production perspective, you know, development, exploration, the the whole kind of gambit, and we're very actively working on opportunities.

5:31 I guess the last leg, something again to just sort of drive home is that we've had sort of significant cost cut, really trying to rightsize the business, especially during the second quarter. We've reduced the the g and a by around 40%. Unfortunately, the full effects won't be seen until 2025, but we really have a good handle on cost, and we'll try to really reduce down our our running cost at which has now given us sufficient capital through the end of q one twenty five. And, obviously, in the meantime, we've got lots of things going on, especially with the farm out looking to bring capital into the business. Just a quick touch on the financial summary. I really won't spend too long on this. You know, we see these as a, what I call a transitional set of accounts.

6:18 Due to the Norwegian joint venture being sold, it it makes for a relatively messy set of accounts, unfortunately. Unfortunately. You know, we have a tiny little bit of income, which is really our recharge services from our our to our Norwegian joint venture from PLC, which is bringing in a little bit of revenue effectively differing costs. Our admin expenses were up slightly. That was largely due to a write off of some costs with a new venture, which unfortunately failed to transact earlier on in the year. And then we had the write offs related to the Norwegian joint venture. Cash at the period end was £1,300,000, but there was also a fixed fee payable of £1,900,000 related to the joint venture asset, which we received post period end, giving us a touch over £3,000,000 in cash release sort of after the end of the period.

7:12 And this is what we're using to fund the business going forward. So what does that business look like? Today, you know, we have our block 2a, which is, as you can see there, in this deep water Sarawak out in Eastern Malaysia. And then we have a PSC as well that we are awaiting award, which is more in the shallow water containing multiple gas fields. It's all discovered resources, which will lead to a very quick low cost development, which we're very excited about. You know, for us, the way we see SEASCAPE is as one of the sort of very few listed small cap E and P businesses that are focused on Southeast Asia.

7:59 You know, we pride ourselves on being, you know, very technically driven. We're well positioned through a a long standing network in the region through Pierre and and James, myself having worked in Southeast Asia for a while. And now having been there for several years, you know, our our name is very firmly on the map, and we've developed some and rekindled some very good relationships. You know, there's a backdrop there of this positive Asian macro growth story, really, as host governments try and encourage investment into the hydrocarbon well, actually, into the energy sector in general. I think they're a big beneficiary of a declining investment climate here in Northwest Europe. And, you know, against this backdrop, we see enormous amount of opportunities. Of course, governments welcome us in, trying to get us involved, you know, pushing things forward as quickly as possible, and a very limited peer set for us and sort of the things that we are looking for and chasing out there. And it's very exciting and lots to kind of get out there in the near term.

9:07 I will hand over back to James to sort of go through the assets a little bit, but, you know, I think really we've got the kernel of a really good portfolio, and this is really the start. So I think that's the sort of context to see what, you know, what we're doing in. So maybe back over to you, James, to go through 2a and and our new PSCs. Very good. Excellent. Well, thank you, Nick. You know, one of the things I'm I'm quite pleased about is although we we haven't got a lot of assets to talk about as yet, what we have got is a really strong competitive edge. When Nick mentioned that we're one of very few peers, one of the reasons for that in Malaysia is that the barriers to entry are very high, and I think I've mentioned this before, but but they just don't let many people in

10:02 to the to the opportunity set that's in front of us here in Malaysia. And so, you know, there is a real dearth of small, credible, technically literate, independent E and Ps playing out here. And this is one of the reasons why we're able to position SEASCAPE to capture these kind of deals. So we're gonna talk about two a, which is our, you know, our big sex and violence opportunity. It's lots of blue sky. It's a giant prospect. It's exciting. You know, it gets it gets the blood going. But, actually, what's also important when you have a quite a fit portfolio is you have something under that underneath that that is a more hard asset that can support that kind of activity. And this is why we like this new PSC award. And believe you me, we would love to be in a position to sit here today and tell you all about it.

10:55 It has taken longer to to to get this over the over the line than we believed. And partly, that's driven by the fact that we've got to deal with not only our own board, that's an easy one, but also we have an operating partner. We also have the federal state of Sarawak involved in this license, and we also have state company of Malaysia. And, you know, prepare to be shocked, but, you know, there are timelines are not their timelines. They're not bothered when our results come out. It'll have to be done, you know, when they're in their own sweet time when they're ready, and, you know, that's fine. That's how it is in Asia. But, we're confident it's happening. As Nick said, it's shallow water.

11:41 What's great about it is it's a portfolio of gas fields. So one license, but we get multiple assets. It comes at zero cost. This is being awarded to us as part of a big round. And another reason why I think this is might be taking longer than perhaps we would have expected is there's a new set of terms, these small field asset fiscal terms, which are much sweeter than we're used to seeing out here in Malaysia. And so, you know, the contractors, I. E. Us, get a bigger share of the the profits, and that's because they wanna stimulate activity out here to get these smaller fields exploited. That's that's the objective of the Malaysian state.

12:27 And as I mentioned earlier, there's just a very, very, very few people who are in a position to do that for whom this is something that's material, but at the same time, you know, can actually do the work. So we're one of very few. And and this isn't the only one, by the way. I mean, there are more of these that we can capture. So when we come when we come to sit here before you next time and talking through this asset in detail, remember that, you know, this is one step of many that we wanna be taking, and and we have a march on competition. We know that other independent E and P companies are looking at this as well,

13:06 particularly in light of what's going on in in the North Sea. In The UK, for example, is a is a great example of what of activity or a sort of province that's highlighting the attractions of Asia because you just can't do this this sort of thing over here in The UK.

13:23 Anyway, we've got big opportunity set, gas fields, and data. That's the other great thing that, you know, isn't to be underestimated is how much data you collect as part of this free of charge. So a wealth of well data, test data, seismic data, you name it. It comes with with, you know, almost a deluge of of information that you've gotta work through. But economics look great. It suits us perfectly. So we're we're very, very, very excited about it, and, you know, we really wanna sit here and tell you more. But suffice to say, I think this is, you know, this is a great solid asset to have under you

14:02 and is gonna lead to cash flow, you know, production growth and and further growth elsewhere in in the region for us.

14:13 Okay. Above and beyond that, we have two a. Again, I know I've talked to you about this. Really, our activity here has been on two things. First first of all, where do we drill this prospect? And I think last time we did one of these, we were working that out. You know, we we have a proposal. But what we've already been working on is bringing in an operating partner to come and drill this well. This well is gonna be in a thousand meters of water. It's a big, big well. You know, we we don't pretend we're in a position to drill it ourselves. We would like to have an operating partner, which which basically means bringing in a bigger player. And as you can see on this map, everyone else in this basin is full of big players. In fact, there aren't any small players apart from us. We're the only ones sitting out here.

15:02 Dominated by Shell, Petronas, obviously, Conoco in there. The other new player is Total who have come in on the big acquisition in the region in this basin. And PTT have been very successful here. We also see the Japanese, obviously, driven by interest in the Bintulu LNG plant, which is, you know, a supplier of LNG to East East Asia, you know, Korean buyers, Japanese buyers. So that's the sort of player who, you know, is chasing upstream opportunities out here. We have 52 and a half percent of this block and operatorship, so we have a chunk of equity. We're very happy to to trade an operatorship. We're happy to trade. What we want to do is is give our investors a free ride on drilling of a well on the Kurtaang giant prospect.

15:56 And, you know, it's a it's an exciting prospect in a province which has seen excellent strike rate. And, you know, we make note there that 25 wells, 8083% success rate for Petronas discovered more than 1,000,000,000 barrels of oil equivalent. More than half of those were made in Sarawak in this basin that you're looking at on this map. And that's why we're seeing a lot of industry interest in that, and we wanna make sure we crack the right deal. So that's really that's taken up most of our our time pretty much on on 2a. Short reminder of what it is. You know, here's a line across Kurtang, 1,700,000,000 barrels of oil equivalent. That's around 90 CF, and that's ERCE, the the independent auditors' view of the resources in that structure and in in multiple different levels, different cycles, as we call them, stratigraphically across that structure ranging from very shallow cycle five, seven

16:59 up up high where we see the aperture brightening above the structure. We can see a gas chimney underneath that feeding it from this structure itself, and then we can see the reservoirs and the saucer rocks actually sitting around the structure itself on that seismic line that we show. Also, I like the fact that it looks like these other giant discoveries in the basin. So these ones, Kasawari, Lang La Bar, and Marjoram are are well known big multi TCF discoveries made by various operators. Of these, you know, Shell operate the Marjoram field. PTT have had success with the Langla Bar, and Petronas now got Kasawari on stream.

17:48 So, yeah, this is very much a lookalike. It's the same it's the same play. It's the same idea. It's a comparable, if not bigger size. And so, you know, it's not the only giant out here, but we think at the moment, this is probably the biggest undrilled prospect possibly in Malaysia, certainly, that we've seen out here in the Leuconia in Sarawak. Okay. Let me hand back to Nick to talk a little bit about what's been going on around the region. Thank you, James. So I think one of the things we wanted to use this presentation to do is just sort of talk a little bit about how excited we are about the region and why we are so excited. You know, as we mentioned, what we're seeing here in Northwest Europe, I think, just in general, is a real challenging investment environment where host governments here are really discouraging investment into hydrocarbons.

18:49 But I think one of the main beneficiaries of that

18:54 that sort of downturn here is you're seeing an upturn out in Southeast Asia, where you still see a huge amount of the primary energy consumption being fired by coal. And, you know, I think in terms of trying to reduce down overall emissions, we're thinking on a sort of a global scale, you know, increasing gas fired power generation, especially out in Southeast Asia, there's a huge opportunity there, which would be a huge net gain. And I think the host governments have really realized this. And what they're trying to do is encourage that investment. They're doing it in sort of multiple ways. We're seeing, as James was saying, you know, changes to some of the PSC terms, which are really advantageous for the likes of us, trying to get more investment into smaller discoveries and get them on stream quite quickly.

19:45 Licensing rounds are becoming more regular, and sort of a number of countries who haven't had licensing rounds in a while have been running them. The Philippines, we saw running their first licensing round in almost ten years. Upcoming licensing rounds we're anticipating in places like Thailand and Vietnam in the near term. And what this is doing is allowing some major play opening discoveries that we're seeing. We've seen some of the largest discoveries globally made recently in the past couple of years. E and I made a giant discovery in Indonesia in the Kutai, you know, six TCF. We see the Andaman Sea over there in the West by by Harbor and BP and others who've really been chasing a really interesting gas play there.

20:37 We've been seeing some of these big gas fields moving both into production. We've seen Jeroun recently start producing in Malaysia. We've seen approvals for giant projects from ENI and things moving forward like Gobadi LNG, which has been in stages for a long time, but now finally being unlocked because of this demand. What that's doing is it's drawing more majors back into the region, people making acquisitions and looking for opportunities. And I think we really have an early mover advantage before this next pulse of investment comes in. And so what we're really trying to do is position ourselves ahead of the curve now, trying to get ahold and build these resources and look to build a full cycle business that is gonna be eventually attractive to someone as an acquisition target. You know, I make no bones about the fact I've been involved personally in three E and P businesses that have been built up and sold.

21:35 I think E and P businesses have a life cycle. You know, we're still at like I we've reset and hit that reset button. We're still at the start of ours, but, you know, we're looking to build and monetize a business, we have a history of doing that, and that's really the sort of plan here. And so, you know, we're in the right place. It's the right time, and we've got the right team that is chasing that. So just to, I guess, summarize, we've cut multiple near term catalysts ahead. You know, we really are this rare commodity. There are not very many peers out there chasing the sort of stuff we are. The things we've got ahold of are really exciting. The pending PSC award in shallow water SEASCAPE It gives us some firm value, which underpins the blue sky upside we see in 2A with the farm out, you know, well underway, you know, and a lot of interest in that.

22:30 We've got a significant opportunity set coming up, we're chasing that. We're very focused on chasing those opportunities to make sure that we are taking full advantage of being kind of a first mover and using that uniqueness we've got. And we've got a fantastic team that is super focused on making this all happen. So I think that sort of ends the

22:54 formal, the first bit of the presentation. I think we were gonna then move to doing a little bit of Q and A. That's great. Perfect, Nick. James, thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the q and a tab situated on the top right corner of your screen. While the company take a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation along with a copy of the slides and the published Q and A can be accessed via your investor dashboard. I'm Nick James. As you can see, we have received a number of questions throughout today's presentation. And if I may now hand back to you and kindly ask you to read out the questions, give responses where appropriate to do so, and I'll pick up from you both at the end. Great. Thank you very much. So thank you all for your questions. I will kinda go through I'll try and summarize a a little bit to and maybe I'll sort of try and ask some of the questions that Jay introduced as a sort of a q and a style.

23:49 So I think that there's a question here around just the overall strategic shift to Southeast Asia and what are we seeing that makes it more attractive than Norway for a smaller business and whether or not we're gonna expand beyond Malaysia. Well, I think, Nick, you're very well positioned to talk about the the differences between Southeast Asia and Norway as Nick was intimately involved with both. But I can certainly talk about the expansion beyond Malaysia, but Yeah. Okay. So I I mean, if we're being entirely honest, we spent a long time and many, many hours chasing many transactions in Norway. And I think what we ultimately found was that small businesses were really struggling to make value accretive acquisitions due to the fact that there were, firstly, there weren't very many assets on the market trading hands.

24:41 The ones that were, were ultra mature, which in and of themselves bring some problems. When assets get very much to the end of their lives, you start having sort of failure risks regards to the infrastructure, which is something we don't really wanna expose ourselves to. And, you know, the cost of capital, I guess the price of being paid for assets just didn't reflect the cost of capital that a small E and P business had. Even when we had had our joint venture with Japnex, we were just struggling. And, you know, I think James probably put it best one time when we were talking about the strategy, which was that, you know, it's very hard for, you know, a new small business in Norway to chase things. And and you probably wouldn't start up a new small EMP there to go and chase anything just because the opportunity set that used to be around when FAIR was around and indeed what we saw at the beginning of the longboat was much different than what we saw at the end.

25:32 And if you contrast that with Southeast Asia where you're welcoming small businesses in, the assets are in shallower water with shorter lead times and this kind of open and welcoming attitude towards smaller businesses, and we believe the returns are more aligned with the sort of cost capital that we have, it's really, I think, what drove that strategic pivot. I guess in terms of whether or not we're going to expand past Malaysia? Yeah. I mean, I think I think Malaysia comes across as the number one destination for us for a variety of very good reasons. But outside of that, I've always quite like Thailand. I quite like Vietnam. Indonesia has has had some improvements recently. I was used to be a little bit cold on it, but it it looks like they're making they've recognized some of their challenges and are doing something about it.

26:27 The just the opportunity set isn't so great in Vietnam and Thailand. It's it's a much more limited, you know, in terms of the running room for someone even of our size, to be honest with you. Indonesia's always got lots of opportunity, but it's just somewhere you have to be very careful of the steps you take, and it's easy to to make a mistake in in Indonesia. And having lived and worked there for many years, I'm I'm painfully aware of it. But sometime, you know, the rocks are good. It's some of these basins are great places to go. You have to be careful with your partners. But so I think as long as you're, you know, you're alert and you know what you're doing, there's definitely opportunities beyond Malaysia for us. Farm out, people are asking. I think we've just I think we probably have to make on that for the for the moment. We look. We've said all along, and we're we're working very hard on it. It just has enormous amount of focus for us. It's a huge value driver for the business.

27:27 We've said previously there's been intense industry interest. The way I would like to describe 2A is that it's the right block in the right place at the right time. You know, this is a really, truly spectacular block with a huge prospect on it that we were able to get hold of largely because of, you know, a lack of investment in a sort of post COVID environment and before Southeast Asia started, you know, heating up. And that is sort of therein lies the sort of the right time, which is that, you know, the appetite for exploration globally has increased enormously. We've seen a lot that in Namibia. We've got sort of peer London listed peers who are active in South America that have been sort of benefiting from that. And so actually, has really come back to the fore.

28:13 And SEASCAPE, we think, is the right place. Again, we've seen a lot of acquisitions. We've seen a lot of development and just a lot of excitement with people coming back in. So the plan has always been to try and execute a transaction during the second half of this year, hence, we're very, very focused on on making that happen. Okay. And then just some questions, think, about DRO signing and slippage on timetable, which I think, you know, is a is a fair question. You know, we were expecting it. And and I think the other DROs were announced sort of midsummerish or late summerish. So why why why haven't we signed yet?

28:58 You know, the much we're frustrated as the next guy, I can tell you. But I think the reason is actually really, the big reason is is that we're dealing with an additional state, if you like, within our within our group. So, normally, when we negotiate an UPSC in in Malaysia, we would be dealing with Petronas, the regulator, and your own partnership group are normally quite reasonable, you know, within the industry where we we know we know how this works. We will get on fine with it. But here, we have not only the state company, but also the federal state of Sarawak who is having a direct interest or an interest within the the project itself.

29:43 And how that interest is held and materializes is something which is relatively new. And so we not only you have the interaction between ourselves and those two bodies, but also between the two state bodies themselves. And sometimes we're the go between. Sometimes, you know, we step aside and let them carry on, and it it's just an additional complication which has taken longer. And I think we also have to recognize we've got the working group, which is, you know, us and our partners. There are executive committees of both of these state entities, and then you have boards. And everything has to go up and down for approval at every step. And so it has, you know, been a bit difficult. But I think when you layer on that these new terms where, understandably, I think they feel they're giving the contractor, I. E. The investing companies like ourselves, sweeter deal. You know? These guys are getting a sweet deal in their mind. So, you know, everything's getting scrutinized probably harder than it would have done historically.

30:49 But I think in Asia, you you you've got to go with it. You know? I think if we get the feeling it's not happening, believe me, we we wouldn't we wouldn't be sitting. We'd be having a very different conversation. It's happening. It's just with Asia, you've gotta go with it. And so, you know, when people ask, well, when and, you know, timetables and is it gonna be tomorrow? Is it gonna be next week? Is it next month? In Asia, it's it's hard it's a hard one to answer. Malaysia is one of the better countries in in terms of following a timetable and a schedule, but I think we're we're in slightly uncharted territory. But, anyway, please bear with. It's happening, and we will yeah. We we're confident we're gonna deliver it. Yeah. There's a there's a huge desire by all the parties to get it over the line, so there's not one party that's dragging their feet or not. It's just a a time issue. So, you know, patience is key. We understand that, having been active there for many years. And so, you know, there's no concern. There's nothing on tour going on. It's just taking a little bit of time. So I think that that's I think that that's probably the answer there. I think there's been some questions about how we're gonna fund this.

32:00 And I think that's once we get this awarded, that's gonna be the next area of focus for us, not only sort of putting together or the operator putting together the development plan, but then looking into how we fund this. I would say I think there's a lot of funding options at the moment. And what we're seeing, especially in Southeast Asia, is, again, this desire to get molecules and barrels onto the market. It gives us lots of options both on sort of a banking perspective. Traders are very, very active with regards to trying to finance things. And with the dataset that we have here, we think that that is eminently doable, especially around the liquids. And we'll have a decent equity stake in this new pending PSC.

32:47 And so we also also retain an option to, you know, to farm down if if we sort of so thought that that would be a a better way of trying to sort of do some financing there. So we'll have everything will be open to us, but we're very confident given the high quality there that that a financing solution should be relatively straightforward to find. Comment on costs for the PLC negotiations and farm out. We I mean, we've we've largely kept this in house. So we're not ones to go out hiring expensive advisers, particularly having gone through the pain of cost reductions ourselves and during the pivot. But, Nick, you went on. Yeah. No. Look, I'm a big believer of of taking in as many things in house as possible to the extent that we can handle and manage those. It it really is a cost thing, but it's also partially the fact that we we have a lot of the expertise in house. You know, I I once upon a time, you know, spent time as a banker.

33:42 You know, Geraldine, who we've welcomed onto the board recently, is a long term banker and great at helping us navigate some of this stuff. So it's really been around trying to own the whole process, keep it internal, and manage our costs as as well as possible. Majors are in someone's asking about majors being in the area in terms of the farm down. Should we assume? Yeah. I mean, we're we're we're we're really, we need a big partner. We need a big operating partner. And and as I showed and talked about, I think most of the player in fact, pretty much all the players out there are big operators, so that should be your assumption. It wouldn't it wouldn't serve us to farm out to another small company.

34:31 That wouldn't work. Yeah. We we we need a carry. We need an operator, and they're they're the guys. And, yeah, it it is competitive. So, you know, I think another other questions are being asked around, you know, if you're gonna run out of money, you know, is it back against the wall, blah blah blah. Actually, this is a intensely competitive process. So so that's great. Yeah. Very pleased about that. Yeah. No. Absolutely. I I don't think I answered any more questions. I I see a lot of stuff around the DROs, and and trust me, we are going to as soon as we can upon award, we will go into a lot more detail. We'll have another one of these sessions. I think they're hopefully very useful. Hopefully, you find them very useful for staying in contact with us as the executive team sort of bringing you along with the whole journey. So I won't answer any more questions about the timelines and what have you because I would prefer to do that with all the detail in front of us. But suffice to say, these are kind of near term developments, and you're very incentivized under the SFA PLC terms to really get after it very quickly.

35:39 And one thing I can tell you is that the partnership that we put together is very aligned on that. I think there should have a few questions around acquisitions and looking at production assets and and what have you. You know, we are continuing to look at opportunities across the the spectrum, across the life cycle, perhaps I should say. You know, the funding of those will really be the key. There is financing out there. There's financing that is available for these assets, but it's about finding the right one at the right place, right time. And so it's about trying to dovetail all of those things together. So very hard to comment on how we would finance a production acquisition.

36:25 But one thing I can say is that we're only going to undertake an acquisition of any description if we see it as being value accretive. You know, we're very focused on creating value for all of our shareholders. So, you know, we will not be doing anything that we don't see as being, you know, very value accretive to the business. Did the recent I I can't comment on sort of failed venture. Apologies on that. Suffice to say, you know, was a major disappointment all around. But, again, this is one of these things where it keeps us very focused on on minimizing our costs until we feel that something is is very, very likely to happen And just in general, trying to keep as much stuff in house as possible, we're seeing ownership over it, which I think is very, very crucial.

37:25 Who are the largest shareholders today? I I would recommend sorry. I'll be mumbling a little bit. We have a question here, which is who are the largest shareholders today. I advise you to go to our website. We have, an aimlessly company, we are obliged to keep our shareholders up to date on the website in our sort of major shareholders section. Yeah. Just last one. Someone's asking if we would have aspirations to be an operator. I think it's a good question. I I I believe, actually, it probably would be good for us to do that. And, you know, given the the scarcity of smaller and and mid cap operators in in Asia, I think there is a huge opportunity set for somebody who can bite this off themselves and and and carry out these operations.

38:19 So the answer to that is yes. I think we just have to be and I I don't I don't think we can do it faster than five years, by the way. But, you know, you have to you have to kick off on the right project. You want one you you really want a project that is very doable and and one that isn't you know, doesn't have the challenges, is reasonably straightforward. And the beauty of that is most of these Southeast Asian small field discoveries are quite straightforward. You're not breaking new ground. You're not reliant on new tech technology. There's tried and trusted ways of doing this that that, you know, that have been done over and over again. So, yeah, absolutely. I think we should be an operator, and and, you know, I fully expect to see us do that sooner rather than later, actually.

39:11 Perfect. That's great, Nick, James. Thank you for addressing those questions for investors today. And, of course, the company can review all questions submitted today, and we will publish those responses on the investment company platform. But before redirecting investors to provide you with their feedback, which I know is particularly important to the company, Nick, could I please ask you for a few closing comments? Great. Thank you very much. Well, thank you all for joining today. We really do appreciate it. We strive to sort of have best in class investor relations. This is one of the key platforms that we will be doing it on. We've also updated our X account and our LinkedIn. Our website hopefully has a bunch of information on it. You know, this is the start or the restart of a really exciting journey. We're all very excited about it. We've got, you know, a nascent but growing portfolio.

39:58 We've got a lot of things that are gonna be going on, and we look forward to creating a lot of shareholder value in the months and years to come. So thank you very much, and we look forward to keeping you updated with all the exciting things to come. Fantastic, Nick. James, thank you once again for updating investors today. Could I please ask investors not to close this session as you will now be automatically redirected to provide feedback in order that the board can better understand your views and expectations. This will only take a few moments to complete, and I'm sure will be greatly valued by the company. On behalf of the management team of SEASCAPE ENERGY ASIA PLC, we would like to thank you for attending today's presentation, and good morning to you all.