Seascape Energy Asia (LSE:SEA) — Post AGM Investor Presentation

0:00 Good morning, and welcome to the Longbow Energy PLC Post AGM Investor Presentation. Throughout this recorded meeting, attendees will be in listen only mode. Questions are encouraged and can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. So click Q and A, type your question and press send. Company may not be in a position to answer every question received during the meeting itself. Have the company review your questions submitted today and publish responses where it's appropriate to do so. Before we begin, we'd like to submit the following poll. I'd now like to hand you over to Nick Ingracia, CEO. Good morning.

0:28 Thank you very much, Paul, and good morning to everybody. Thank you for joining us for our post AGM investor meet company presentation. I'm pleased to report that all resolutions were passed at the AGM today, which marks the end of an incredibly busy few weeks for the company as we've worked to transform it into a Southeast Asian focused EMP. Hopefully, everyone can see the presentation on the screen. So as I've mentioned, the past six weeks have been incredibly busy. During this period, I've been appointed CEO. James today was elected executive chairman, and we've worked to slim down the board to a more fit for purpose, four person board.

1:15 We'll go through some of those people, in another slide or so. What we've been doing really during this period is focusing on, our cost cutting to ensure that the business itself is fit for purpose, and that we are, set up for success in Southeast Asia. As part of this overall process, we also took a very detailed look at the business in Norway and made the decision to exit there. In a press release this morning, we've put out that we are making very good progress with that exit. We now have approval from the Ministry of ENERGY there as well as having lender approval as well for that transaction. And we would expect that transaction to close some point during the summer, bringing in $2,500,000 of cash into the business, which itself will see us, alongside of our cost reductions, see us get through, at least the first quarter next year, with adequate cash resources.

2:17 Alongside the decision to exit Norway, we've decided to pivot the business to Southeast Asia. We will go through a few slides, on that and really the rationale behind it. But this really comes, you know, against the macro, backdrop of of very positive growing economies there, which are very energy hungry. There's a proliferation of opportunities in the region for, small and medium sized businesses really led by host governments, which are, very encouraging for businesses like us. We see a structurally lower cost of, structurally lower cost of, operating there largely due to the benign environment. And we also see a big ESG win with carbon emissions, able to be reduced through, replacing coal fire, generation with gas fired, through indigenous resources.

3:12 We also have a wonderfully experienced team with a track record of both portfolio building and and successful exits. And in the near term, we're gonna be focused on farming out our, block two a, which we'll get on to. I'm sure everyone wants to hear from James. And

3:27 and we're also, looking forward to securing a a gas cluster, offshore Sarawak. And through this whole piece, we'll remain opportunistic when it comes to the ability to pick up additional assets in the region.

3:41 Just a quick overview of, you know, the management and board as it's as it's been reconstituted. I am Nick. I'm the CEO. I was previously the, business development director, at Longboat, but also, previously at Salamander, FARO and Valiant. For those who have a long history in The UK E and P space, all of those businesses were were sold, to to peers. I have a background in finance largely,

4:08 both on the lending side and and on the investment banking side, But I also have some operational experience, post takeover of Faroe. I ran, DNO's UK operations, which included some, operated, Southern Gas Sea Southern North Sea, assets. I'll let James introduce himself. Thank you. Yes. James Amenzes. I was the founder and CEO of Salamander Energy, which was a pure Southeast Asian focused e and p company, which we started back in two thousand o five and sold in 2015. Since then, I've been helping small e and Ps in in Southeast Asia, notably Coro Energy for a little while. Also, TAP Oil is an Australian ASX listed. And then myself and my business partner, Pierre Eliot, who's now our our man in Southeast Asia based in KL, set up a a business, Topaz, advising people around business development in Southeast Asia, and Longboat became one of our clients. And since October last year, both Pierre and myself came in, joined Longboat full time, and and bended in our interest in in block two a, which we're going to talk about shortly.

5:24 We're also super grateful that Graham Stewart is is remaining on the board. He has a huge amount of experience in the space and and continues to to to have a huge contribution to the business. And we're also pleased to welcome Geraldine Murphy onto the board today. She has a a long history in the independent E and P space on the banking side, and so will be invaluable in helping us transact going forward. So I'll run through a few of the sort of macro sides before I'll hand over to James to give a to give a an overview of two a and some of the activities we've got going on over in Southeast Asia. So, I guess, the the backdrop for the, for the entire pivot really is based around Southeast Asia being a great energy growth story.

6:14 You've got a very young population who still consumes a a a on a per capita basis, a very low amount of energy, versus more developed peers in in Europe and North America. And this really leads to hydrocarbon demand forecast growing, over the next twenty or thirty years, as opposed to North America and Europe where it's projected to start declining. It's worth noting that these energy needs are currently being met predominantly by coal and coal fired power generation, which really is a travesty given the amount of natural gas resources you have out in, in Asia. And I think that we can be very positive in that sense, helping some of these biz some helping some of these countries develop through monetizing those gas resources and replacing the coal fired generation.

7:04 So we've got a great macro backdrop to being in in Southeast Asia and trying to build a business there.

7:15 For small business such as ours, you know, one of the other things we look for is, where are the opportunities, and where is the competition. I guess in terms of the opportunities first, what we see is increasingly, large businesses have been moving to divest assets in Southeast Asia and head out of the region as they tend to as they're doubling down on shale resources in North America. And this in turn creates a huge amount of opportunities for a business such as ours. We've already seen people like OMV, exiting. Recently, it's a gas business in Malaysia. Repsol has been announcing that it's gonna be exiting its Southeast Asian operations largely in Indonesia, and we think this trend is set to continue. And against that backdrop, we see very limited competition, from sort of peers and listed peers in the space versus what we were encountering in the North Sea, which is an incredibly crowded space, both with private equity, public companies, of varying sizes.

8:16 And so, really, we think that the setup is excellent for us to come in, and make a real difference and be able to to access opportunities that have not really been available to the business here in in Northwest Europe. So together with the macro backdrop, this is a great setup for for a business such as ours.

8:39 Zooming in a little bit more on on Malaysia, you know, this is, in many ways, a culmination of of something that, I and, been wanting to do for a very long time, I guess even predating, Longboat. And James and I, immediately after the sale of of Salamander, looked to build a business in Malaysia. We love Malaysia. It's a great place to be. And, you know, the block that we've picked up, is is particularly exciting in an exciting space, at a time when exploration is is getting a lot more attention after a couple of down years. The map here shows us, shows our two a block here in in Sarawak in Eastern Malaysia. This is a a very old gas province, with a huge one of the world's largest LNG plants there, Bintulu, with over, 30,000,000 tons per annum, which is about a t and a half a year of production capacity.

9:37 We see majors reentering the region and really sort of pushing for the gas to LNG opportunities. We already mentioned Total and a sort of a $1,400,000,000 acquisition of of two sides, both the OMV stake and the Sapura stake in Sapura OMV, as well as seeing Shell, who's recently FID ed a a very large field, should be doing, about 800,000,000 scuffs a day in in the next, year or so. We've seen a huge amount of, discovered resource in Malaysia, great success rates, with lots of exploration wells focused a lot of it on Sarawak. And we also see, the government encouraging, picking up of valid discoveries through the MBR, plus licensing rounds, which we'll come on to sort of shortly. So I think we are sort of surrounded by majors in a in a place where, we can really make a difference.

10:28 Maybe James? Yeah. Thank you very much. Let's, zoom in on block two a, which is very much, you know, the the star of the show at the moment for longboat. And so we're looking at the the same map effectively on the right hand side there. This is what you've got there at this at the bottom half of the end of the map is the the coast of of Sarawak in East Malaysia, and and that's the offshore. So all those red and green blobs are gas and and oil fields. And you can see the location of the Bintu Bintulu LNG plant there. You can see where our Block 2 A sits somewhat outboard of most of those fields. So we're going into what we call the Northern Leuconia Basin, and it's it's it's about a 100 kilometers plus from infrastructure. So it's, you know, it's pushing out there. But, actually, what attracted us to this was two things. First of all, we recognize there is a huge structure out here, which I don't think the industry at large had really focused on.

11:28 And secondly, it's it's out of the c o two zone. I'm gonna come back to that in one second. But when we got this block, you know, it's it's 12,000 square kilometers, so it's it's huge in terms of relative to other exploration blocks you might see around the world. Water depths, let's say, go out to 1,400 meters. So it gets into deepish water at at some points, and it's a five year PSC. Three years to do our work and then a a break of two years to get the well drilled in. And it was really this Kurtang feature which we liked. And what was notable was that we had high quality three d over the Kurtang structure itself that was already there. It was shot in 2015. We've got about six and a half thousand square kilometers of three d data that came with this, which, you know, we didn't we didn't pay for that. That was part of the data package. And and around 17,000 line kilometers of two d seismic. So there's a huge amount of data that that came with the block effectively free of charge.

12:37 When we when we started mapping this in detail, obviously, Kurtang was the thing that that piqued the interest, but we've really noted two prospective trends within two a itself. On this map, we're highlighting the Kurtang structure there in orange. You can see the the big orange blob. And surrounding that, we've got Kurtaang look alikes. So there are other closures, four way deep close structures that that kind of had similar characteristics to Kurtaang. They're probably the same play, maybe different cycles, and I'll come on to that in a second. Obviously, of smaller structural size, so the the the resource potential is gonna be less. But nonetheless, there's quite a few of them. There's a second play present on the block, which has really only come about or been notable quite recently, and that's this shallower turbidite play. And I'll show you this on a seismic line in a second. And what's really piqued our interest is these discoveries south of the block, and we highlight them at the the bottom end of this map.

13:38 Machin Chang and Sing Sing are two notable discoveries made by Petronas Charogale recently. When when we quote these success rates in in Malaysia where we see, you know, 19 discoveries, Some a lot of these were were made here. So these two discoveries, and there's been another one as well, were part of that. And not that much is disclosed about them, but what we do note is the the they are turbidite plays. They're in they're in cycle seven, eight, and we can follow them into block two a. And we can map similar look alikes, analogs, if you like, within two a itself. So we would expect that play to be present, and I'll show you what it looks like in one second.

14:27 Here is the structure itself, the prize, if you like. We've just published this morning the results of the CPR that ERC have done for us that give it a combined nine TCF and a 146,000,000 barrels of of of liquids in the in the mean case.

14:47 So this is the best estimate, if you like, of the of the volumes. I think if you look at the upside, the the the p tens, you know, you're going over 20 TCF. So it's this is a very, very big structure. It's over 220 square kilometers in in terms of closure. So it's we think it's probably the largest undrilled structure in in the Malaysian offshore at the moment. And we've been spending quite a lot of time work doing work on it, looking at what is the what's inside that closure, what is it we'd we'd be drilling, and where would you drill it? Because it's such a large aerial closure that, you know, it's not obvious where you would you would punch a hole down. Other notable things about it is it's got a gas it's got a gas chimney sitting above it, a gas cloud.

15:35 That's encouraging in some ways. It shows you the system is working, that that clearly gas is coming is being generated here and and is coming out of the the structure, which, you know, you might interpret as being a negative thing. But as we'll see in a second, gas chimneys are quite common in these kind of closures in in offshore Malaysia, so we don't view that as a negative at all. But gas in the shallow does kind of get in the way of imaging the structure beneath the the gas cloud. So you don't really wanna be drilling blind into in into the prospect. You wanna see what

16:07 you've drilled. And so finding a location that's gonna test all your target intervals is a bit of a challenge.

16:15 And, also, what is the reservoir that we would expect to find within Kurtaang? And here, you'll notice, if you look at the work that ERC have published, they define these these target horizons by cycles. And cycles are really stratigraphically defined units that you can map across wide areas of of the basin. So if you look in well data and seismic data, you can take you can take a cycle across a wide distance, and these events are synchronous so that, you know, they they happen in one instant. And so they help us define what the reservoir rocks or what sort of rocks we might be looking at. And when we look at the offset wells, we can take what we call cycle one from those offset wells into Kirtang itself. So a large chunk of what we expect to find here is Cycle 1.

17:04 The good news about that is Cycle 1 is the best reservoir. So if you're looking for good net to gross, good porosities, it's a it's a classic play. It's got interbedded coals within it, which are actually also the source rock for the gas. Cycle 1 is what you want. So we see in areas areas of this structure which have quite well developed cycle one section. Also, some cycle two. Cycle two has poorer reservoir. When those reservoirs are positive, the water was getting a bit deeper. It's a bit muddier, so it doesn't make such a good high quality reservoir unit. But nonetheless, we see that's present in there. And then shallower above the the prospect itself,

17:47 we find these other cycles. We call them, you know, seven and eight, and they are these brights that sit over the structure. And we've labeled them on this a little bit of seismic there. What's going on there is the gas is coming out of the structure, illuminating those shallow sands, and they are brightening up. And it's those shallow sands that that make up the the the discoveries to the south of the block. That's the play that the Petronas have found.

18:15 I think what's also good on here are our our technical whiz in KL has put on this little seismic line, the the the Petronas Twin Towers, to give you an idea of the heights of the structure. And so you can see there about, I think, about 470 meters or something. But you you can see, you know, the the scale of the relief that we're looking at on this structure. There's something like 1.4 kilometers of of height, vertical height in terms of the closure. So, you know, this is a this is a giant structure in, you know, in in anyone's book. Just comparing it quickly to some of the other discoveries in Sarawak. And, you know, if you look at this this slide here where we're comparing it to Marjoram, this is the shell field that Nick was talking about a little bit earlier. They're developing Marjoram and rosemary.

19:09 And here, again, you can see there's a gas cloud sitting above Marjoram. There's a couple of TCF that Shell are doing there.

19:16 The the big headline projects, the two on the right, Lang La Bar and Kasawari. Lang La Bar is PTT operated. The Thais have worked this up. Very much a lookalike structure as is Kasawari. Kasawari is six TCF. Langlovar is about five TCF. Kurthang, you know, as we see it here in the middle, nine TCF, as you mentioned before. So, you know, it it it definitely has analogs in terms of its structural style in the rest of the basin. But one thing you may if if you if you look up Kasawari or Langlo Bar, if you Google them, one thing you'll you'll hear is that they've got issues around contaminants. And c o two, in particular, is a is a big problem with Langlovah and and Casaouari to to a degree. In fact, they're having to build carbon capture projects to go alongside these developments. So c o two in parts of this basin is an issue.

20:14 And, of course, when we looked at this block two a, we were very alert to that. We're very alive to the fact that is this a c o two risk despite the fact that, you know, we see big structure and evidence of gas there. And two two bits of evidence that really gave us great comfort. One was that when we talked to Petronas about this this structure, this prospect, this is before the the license round when we were doing some technical work on it. They were actually conducting a survey around here, the the seafloor sediments.

20:49 And the analysis of the seafloor sediments over Kurtaang and elsewhere in this part of the basin was that there wasn't any c o two. Although there was very, very limited evidence of c o two, but it's very, very high concentrations of methane. And that's what we found over Kirtang. It was methane rich. And the second thing that we gave us a lot of confidence was what I wanna show on this next map here, the the the regional c o two occurrence map. And this shows you the the deep where where people are predicting c o two to be a problem out here off the coast of Sarawak. And you can see there's a huge issue to the Southwest of 2 A. And this is when you get into the two trough. So the the basin gets very, very deep. And what's going on here is where where we people think c o two is being generated is in these very, very deep bits of the basin where there's fractures going into the mantle of the Earth's crust that's releasing gases, and it's migrating out of those very deep

21:45 parts into the the surrounding areas. And so that is giving you a very strong c o two risk and a big contaminant danger, if you like. And in fact, it's this part of the basin just over in Indonesian waters where the Natuna D alpha field sits, which is a supergiant. There's over 200 TCF in place, and it's 70% c o two. It's never been developed, but it's long been recognized as this absolutely enormous field. Exxon had it for a long time. I think the Indonesian's sitting on it right now wondering what to do with it. But that, you know, that shows you the sort of volumes of c o two you can you can find. Two a sits well out of it. And not only our own geochemical analysis, but also the gas found in those shallow discoveries to the south of us is sweet.

22:37 There is no evidence of any contaminants or c o two in those in in Sinseng or Machin Chang. So, you know, this gives us a lot of comfort that actually we're we're we're out of the c o two zone. The geochem is telling you it's methane. The seismic is telling you there's definitely a charge going on, and gas has got in here, and the structural mapping is telling you it's a giant. So our work's really been focused on, you know, where would we where would we drill this prospect, where can we catch

23:08 all these target intervals, stay away from the gas cloud, drill it safely, make sure we can see all the calibrate the resource that that we can find because, you know, when you know, like they say, when you come for the king, you only get one shot. So you better make sure it it it works, and that's, that's what we've been focused on. Switching gears a little bit, just away from c two a, looking at the the DROs. We've announced that we have been notified of an award for what's called a discovered resource opportunity. This is a shallow water, so it's a very different beast to what we've just been talking about. These are shallow water fields. Petronas are really wanting to license their offshore in totality. They would love to see the maps of offshore Malaysia fully colored

24:01 in by license holders getting after all of it. They recognize a lot of discoveries they sit on are far too small for the incumbent players within within Malaysia. And so they're trying to encourage those companies that are qualified to do this work, of which Longboat is one of very few, to apply for these discovered resource opportunities. And that basically means that you pick up discovered fields. Some of them may have been on stream already, but they all have seismic. They all have well data. You can have all the data that goes with them. They will give these fields to you if if you're awarded them. You don't have to acquire them. They they come effectively free of charge, but you have to bid a work program.

24:47 And what they want you to do is to work up a development scheme. They're all they're all generally in shallow water close to infrastructure. So so these are ways that they'll they'll make sure you can tie in locally to to infrastructure infrastructure nearby. But they would like to see people try and exploit these things and do something with them rather than see them sit fallow doing nothing. So we're quite excited by that. You get sweeter economic terms as a result, and you get a streamlined way of doing things. So your procurement systems can be, you know, simpler than they would normally expect. Approvals are much easier to come by. They try and encourage you to to to do it, you know, cheap and cheerfully, but please, can you, you know, do something with this resource? And, you know, we can all make some money from it. So we're really pleased about that. We can't say too much more about it right now, but we'd expect to be able to talk about this in in the very near future.

25:46 And I think it's a great way for Longboat to add resources, low cost. You know, when we come to look at the development of these things, they they are cheap and cheap. Like a lot of Southeast Asia, this is a quite a benign environment. It's a low cost environment. It's very, very different to what we're seeing in the in the North Sea. And that's the way the host government likes it, and that's what they they're trying to encourage. So what I'd say about this is, you know, standby. We will be talking a lot about this probably in in from the midsummer onwards. Nick? Thank you. So, look, just to summarize, first of all, we are really, really excited.

26:32 We've got a real fantastic opportunity ahead of us, only with two a, not only with these DROs, but also, you know, other opportunities we're seeing to grow the business, and put it in a direction, which and access to opportunities we have not had, for a long time. And we've got the right team. We've got the right attitude. You know, we've got our eye on cost because that is also very, very important, and we're continuing to to make sure that we're doing and delivering everything at the lowest cost possible. You know, we'll be moving to a forward. The farm out will be, you know, in course and and looking to deliver that, so that we can focus now then on, drilling. It's a super giant, and we are really, really excited to and very lucky to have captured that opportunity in a in a hot spot at a time when exploration is getting very, very hot again in a great location.

27:28 The the MBR Plus, well, as James said, we'll be talking about soon. I'm very, very excited about that. Really, sort of the the next leg to the story and and the sort of pipeline of of BD opportunities, will be our next focus, really, with an opportunistic, approach, so that we can, remain flexible as to how we create value, across Southeast Asia going forward. And with that, I think we'll, we'll take a few questions. Fantastic. Thank you very much in both, Nick, James, for updating investors today. As you can see, we've had a number of questions that have come through already, and I'm sure we'll get a few more. So perhaps if I may just hand over to you and just click on that Q and A tab and where appropriate to do so, read out the questions. But just while the team take a few moments to review those, I'd like to remind you that recording of the presentation, along with a copy of the slides and the published Q and A, can be accessed by your investor dashboard.

28:22 If I may, guys, just hand over to you. Just start at the top, and I'll pick up from you at the end. Okay. All right. Excellent. So so we'll just say, James, maybe shall I act as I'll I'll read them and then you can so so I I think the first quest there's obviously a lot of questions around the farm out process. And I guess the the first one is really around how how will Longboat manage that overall process. Are we gonna do it in house? Are we gonna push it out? Or or Yeah. What's Yeah. What's the plan? What's the plan? Well, it's a great question and something we've given quite a lot of thought to. I think it's what's important here is we maintain a disciplined process. You see so many efforts to to farm out blocks and and manage disposals in in this part of the the sector fall over because, you know, companies don't run that discipline process.

29:17 So we feel we don't necessarily need we don't really need a third party to do it. We know this asset very well ourselves. We have a lot of expertise in terms of a and d with in house. Not least Geraldine, who's recently joined us, is very strong in this area. And, actually, it's with some of her help, to be frank, that we have brought in somebody to help us from outside. So they're sitting within Longboat but managing the process. There's somebody who wakes up every day, and they're worrying about where we are with this process and making sure communication's ongoing and keeping all the companies on the straight and narrow. But we've seen a lot of interest, and I think we as we've alluded to several times, I'm pleased to say Petronas are right behind us. They're approving a long list of companies to review this that they would welcome as partners within the two way consortium.

30:15 So it's looking very encouraging, and we've got some with some good people who are managing that on behalf of Longboat within the company. I hope that answers that. Yes. I think there are in terms of yeah. So there's, I think, there's a question around sort of preemption rights and, you know, I I I I there they're So maybe just on those two. So there's a question about preemption rights. I I I mean, there is, but but Petronas, who are our big partner, are obviously approving this process and are right behind us in terms of finding. They're also quite keen on on outside investors coming in. So for Petronas, I think they they would love to have a new party coming in or an another player. It's a big feather in their cap.

31:05 So if anything, you know, they're they're they're very supportive of of all these efforts. In terms of the first well drill, Petronas are putting together a drilling program that'll go through 2025 into 2026 that will drill a lot of deepwater wells in this around this area. And they want to see Kutang drilled within that program. We don't know whereabouts in the program it will be, but they'll have a rig come in, and we will be in that train. And the farm in e will participate in that as well. Obviously, they cannot we're very happy to give up operatorship to a farm in e because, you know, we are we are three men and a dog. And, you know, it warrants more than that to drill a big well like this. So but they will join that program.

31:56 And, yeah, it's going to happen. So, you know, that train has has kinda left the station almost, and and it'll be on its way. I guess there's sort of questions around sort of the the financial, piece. You know, I guess we've said in these, both in our releases, and in the presentation today that we've got enough cash to get us through at the end of the first quarter next year. And, really, we feel that that gives us enough time to achieve a farm out. And, you know, it's our hope that the farm out will, given the the high quality of the prospect and and the location and and the competitive nature, you know, we're we're hoping that that will bring in a combination of carry and potentially even some cash. So, you know, I I think that we are the the good news is we are good, for the time being in terms of cash and and allow us to see through that process.

32:51 Fiscal terms? Fiscal terms is good. Yeah. Good. Yeah. I I think I would add that Malaysians are, as I mentioned earlier, you know, they're they're quite forward thinking as an NOC and as a regulator, and they're trying to encourage as much activity as they can. I think they you know, I'm putting words in their mouth here, but I think they recognize that, particularly oil and and gas to a certain extent. You you know, there there is there is they work in cycles, and there may not be that many more cycles left for oil in particular. But they they do seem in a big hurry to get their their licenses out and people drilling things. And as I mentioned, one of their targets is to get the entirety of their offshore acreage licensed.

33:37 So to that end, they are encouraging people with improved license terms, particularly for deepwater and also for these small fields. You get small field allowances. There are small field terms, which are which are quite a bit sweeter than the terms we're used to seeing in Malaysia. So, yeah, the terms are attractive. The difficulty is not the terms. The difficulty for most of the industry is getting in. They're very sniffy about who they let in. And to get you gotta get once you're in, you're away. But getting in the door is quite difficult. And one of the reasons why there's so few players in Malaysia, small players, is because they just, you know, they just won't let them won't let them in. You have to be you have to qualify, and you have to have the right track record, and you have to have right ESG metrics. And that's something we've got, and it's a real competitive edge. And that really is sort of, you know, one of the key things we took across from from our Norwegian operations and and really were able to leverage that and the wells that we had drilled and our our safety record and and our technical staff, and really utilize it to get it to Malaysia back about a year ago.

34:45 So that's sort of that's been a a real positive. There are few questions around the DROs. I think we're gonna try and avoid a lot of that for now. You know, we'll make more comment when we can about that stuff. I there is sort of one question that is that is sort of interest interesting, which is sort of like it really rolls around, you know, are these, you know, too small for incumbents? And the reality is is, no, they're they're a lot of them are not small at all. They've been clustering these things together as well to make them to make the sort of the overall development bigger. I think that they really will it's it's they're they're of a size, I think, that are not interesting for majors, and we see there's still quite a few majors. But but they are, you know, a bit just for the the sort of smaller and medium sized companies. And for us, this would be perfect. The resource actually is quite reasonable.

35:32 And when we can talk more about it, you know, you'll be able to see, the scale of some of these. So so we're we're really excited, and it's definitely, you know, material for for someone like us and and even for sort of bigger companies than us. We we won't comment on any of the sort of format discussions and and what have you. I'm sure that everyone's gonna be very, very interested in that. It's one of these things where where you're gonna have to trust in us to run the process. We've got a lot of interest. We've got a lot of experience, you know, across the board in terms of, managing processes, you know, acquisitions and divestments, you know, both myself, James, and a number of people at Geraldine, a number of people on the team. So, you know, we won't we won't be able to provide any information on that, but but, you know, trust us. This is it's gonna be an interesting process.

36:22 Oh, question about the see the chance of success in CPR. Yeah. That's a good question. So you've seen, you know, we're we're we're ERC have published chances of success, some of these intervals. Real I mean, you know, this is explorations. But first of foremost, I you know, Nick absolutely hates me saying this, but I am a super reluctant explorer, you know, despite being despite being the explorer around the table. I'm I'm really I'm really I wouldn't say I don't like it. I'm just a very I'm I'm I'm a nervous explorer in many ways. But so this is exploration. I mean, in terms of of chances of success, this is telling you that these are kind of mid to good you know, the the risks look pretty reasonable for for exploration drilling, particularly of a target of that side. What you normally find is the bigger the the prize, the higher the risk. So you can drill little step out prospects next to your field that might have a 70% chance of coming in because, you know, we know everything works. It's just the next bump here.

37:24 What's unusual here is we've got sort of moderate to quite good risk against a giant prize. So that is highly unusual. The key risks the key risk really is SEAL. So what we've seen in looking at offset wells is some of them look to have failed because of of SEAL risk. And, you know, we're quite away from the nearest the nearest well data, and we can use seismic to a certain extent to to give us some comfort. And it certainly looks like the the drape there's a big unconformity. Why why that looks so stark, this the the seismic line, is because it's a it's an unconformity that that forms that surface that looks so obvious on the seismic that forms the kind of the witch's hat, if you like.

38:11 And we're we're reasonably certain it's it's a very shale rich sediment that drapes over the top of all that. So that that forms a good seal. But within the cycle one itself, it's quite a sandy unit, which is great from a reservoir point of view, but, you know, could be a bit tricky from a SEAL point of view if you're looking for interformational SEALs. But we we would expect to find SEAL you know, we're looking for SEALs within the unit and also ultimately to have a a Shell unit draped over the top of the whole thing. So SEAL is your is your biggest risk. Outside of that, the rest of it, the plays the plays demonstrate the the shallower units. Some ways, you know, the play has definitely been proven by those wells to the south. You know, the charge is there. That's that's clear.

39:00 So most of the most of the risks are kind of accommodated for, apart from the SEALS, the the one big outstanding one. So I I would look at it risk versus size of the price. That's that's what's anomalous. Again, more I think we've answered a lot of these ones around funding that we're we're you know, we're we've given an answer there. So I don't think Would you consider buying producing assets? Well, I think I think so about that is we would love I think our ambition is to be a full cycle E and P company. We would love to build a business in Southeast Asia that has all those elements. I think what's challenging right now for all these little companies is access to capital, and we are no different. So I think the days of we found a great deal to buy some production, can I go and get some money from the market, are kinda not here? They're gone.

39:51 I'm not sure they're gonna come back. So I think to do that, we're gonna have to find a different way, whether that's utilizing one of the assets we have in some way to create an option which enables that to happen or doing something with a capital provider where, you know, perhaps they are looking for off take options or something else around the transaction. But I think we're gonna have to get a little bit cuter than perhaps we we used to have to worry about. So we would love to, but I think how you go about that is we're quite limited, but, you know, we're imaginative people. So, hopefully, we'll find a way. Yeah. And that's really the sort of the the messaging around being opportunistic. And, again, we have a a long history of transacting at at multiple businesses, you know, in multiple situations. So, you know, I'm confident that that we'll be able to build the portfolio in a real value accretive way.

40:44 And so, you know, that's gonna be super important to us. Again, lots more questions around just sort of equity issues and stuff, and I think we've answered our our sort of positions on that. You know, we've been talking about the farming down. Yeah. There's lots of just there's are there any future licensing around exploration in Yeah. In Malaysia or nearby? Well, there is. I mean, they they they want they're keen to license more acreage. I think what we're very conscious of and coming back to my comments about, you know, my views on exploration generally, I I think small companies that go on an exploration run, one end of the spectrum, exploration is just a big liability. And what we don't want to do is end up with a large portfolio of liabilities.

41:31 That's absolutely not what they're about. So we have to be very disciplined and very selective. If we pick up some exploration, we have to be really confident that we can bring in a partner and flip this round. Because we don't wanna drill it with our money. That's absolutely you know, that's not us. So we're we're very alert to that, and we're we're thinking about lots of exploration, you know, potential, but you've gotta be sort of one step ahead of the pack to do this. And I would say we will we got lucky with two a. I mean, that was a that was luck from the mainly. We just happened to be in the right place, right time, and it kinda fell in our lap. And that's okay. You know? We we if you're lucky, just, you know, fess up, admit it, and and make use of it. So we want to we want to do something with that, and and thank you for the good fortune. But, you know, can we get lucky again? I don't know.

42:22 We'll we'll see if we can make our luck, but we'll we'll we'll definitely alive to the to to those things. Yeah. And, yeah. So we're keeping our eye across the region. You know, obviously, we're starting Malaysia, but there are, you know, other countries that we would consider going to as well. So, but we'll do it in in a measured and thoughtful way. So, so, look, we're really excited. I think it's probably we've answered most of the questions. I think we've probably gone on just about long enough. So I would suggest we bring it all to a close now. I think the intention will be to, ensure that we do these regularly, especially when there are big pieces of information that come out. We wanna be able to to connect and communicate with our investors. We think it's important. And so, you know, thank you. Thank you for attending today. Thank you for taking the time. And we look forward to to the coming weeks and months trying to, you know, rebuild Longboat and make it a a really exciting Southeast Asian business.

43:18 Fantastic. Nick James, thanks indeed for updating investors today. Could I please ask attendees not to close the session as you now be automatically redirected to provide your feedback in order the team can better understand your views and expectations? This will only take a few moments to complete, and it's greatly valued by the company. On behalf of the management team of Longbow Energy PLC, I would like to thank you for attending today's presentation, and good afternoon to you all.