Seascape Energy Asia : Block 2A Farm Out & Financing – Creating a platform for growth

About this update from Seascape Energy Asia Plc

December 2024 Block 2A Farm Out & Financing creating a platform for growth 1 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 the European Union (Withdrawal) Act 2018), who (i) have professional experience in matters relating to investments and fall within the definition of "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the "FPO"), or (ii) are high net worth companies, unincorporated associations or partnerships or trustees of high value trusts as described in Article 49(2) of the FPO, or (c) persons to whom it may otherwise be lawfully communicated (in each case referred to as "Relevant Persons"). The information contained in this Presentation is not intended to be viewed by, or distributed or passed on (directly or indirectly) to, and should not be acted upon by any class of persons other than Relevant Persons. This Presentation may contain unpublished inside information with regard to the Company and/or its securities. Recipients of this Presentation should not deal or encourage any other any other person to deal in the securities of the Company whilst they remain in possession of such inside information and until the transaction described in this Presentation is announced. Dealing in securities of the Company when in possession of inside information could result in liability under the insider dealing restrictions set out in the Criminal Justice Act 1993 or the UK Market Abuse Regulation ("MAR"). This Presentation may contain information which is not generally available, but which, if available, would or would be likely to be regarded as relevant when deciding the terms on which transactions in the shares of the Company should be effected. Unreasonable behavior based on such information could result in liability under the market abuse provisions of MAR. This Presentation contains forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Certain forward-looking statements are based upon assumptions of future events which may not prove to be accurate. These forward-looking statements speak only as to the date of this Presentation and neither the Company nor any of its members, directors, officers, employees, agents or representatives assumes any liability for the accuracy of such information, nor is the Company under any obligation to update or provide any additional information in relation to such forward-looking statements. Nothing in this Presentation is, or should be relied upon as, a promise or representation as to the future. This Presentation is not for release, publication or distribution, directly or indirectly, in whole or in part, in or into Australia, Canada, Japan, the Republic of South Africa or any other jurisdiction where to do so might constitute a violation of the relevant laws or regulations of such jurisdiction. The distribution of this Presentation or any information contained in it may be restricted by law in jurisdictions other than the United Kingdom and recipients of this Presentation outside the United Kingdom should inform themselves about and observe any applicable legal restrictions in their jurisdiction which may be relevant to the distribution, possession or use of this Presentation and recognise that the Company does not accept any responsibility for contravention of any legal restrictions in such jurisdiction. The Company's securities have not been and will not be registered under the United States Securities Act of 1933, as amended ("Securities Act"), or under the securities legislation of any state of the Unites States nor under the relevant securities laws of Australia, Canada, Japan or the Republic of South Africa and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable state securities laws. By attending this Presentation and/or accepting a copy of this document, you agree to be bound by the foregoing limitations and, in particular, will be taken to have represented, warranted and undertaken that you have read and agree to comply with the contents of this notice including without limitation the obligation to keep this document and its contents confidential 3 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 Salamander Energy Previously with Coro Energy (CEO), TAP Oil (Exec Chair) Senior Partner at Lambert Energy Advisory MSc Geophysics & Planetary Physics BD Head of SE Asian-focused Salamander Energy Former UK Country Head, DNO Previous corporate development roles with Longboat, Faroe, Valiant Banking experience with Morgan Stanley and RBS MA Ancient History Broad range of technical and business development roles Business development across Asia for Lundin (now IPC) and ROC Oil Key technical role at Cairn, involved in Mangala discovery BA Earth Science, PhD Geology, IDP-C INSEAD 4 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 existing, extensive data sets Direct awards possible representing immediate value accretion Medium-term: ambition to build a full-cycle portfolio Evaluating opportunities across Southeast Asia Developing operating capability will increase attractiveness to host governments Risk diversification Extensive network of deep relationships across Southeast Asia Host governments and regulators Industry peers, service providers and financing partners Strong technical knowledge base 5 Technically driven, well positioned Block 2A 2 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 Gross estimated GIIP 1 : +500 bcf (~83 mmboe) EnQuest operated 1 • Net estimated resources 2 : ~ 85-100 bcf (14-17 mmboe) • Potential value (£/share) 3 : £0.71-0.95 • Giant 'Kertang' exploration prospect • Gross Mean Prospective Resources 5 : 9.1 TCF + 146 mmbbl (1.7 bnboe) • Chance of Success 6 : ~22% 2 • Net Mean Prospective Resources 5 : ~900 BCF + 15 mmbbl (166 mmboe) • Potential value (£/share) 3 : £8.46 1 DEWA Bintulu LNG Key Regional Players Initial portfolio includes hard value and blue-sky upside (1) Internal Seascape estimates (4) Subject to transaction completion 6 (2) Internal Seascape estimates based on a recovery factor range of 60-80% (5) ERCE Competent Persons Report 31 Mar 24 (3) Based on net resources as-described valued at $4/boe, GBP:USD FX of 1.25 and Total Shares Outstanding of 62.8 million (6) Based on mid-point CoS% range of 16-27% in ERCE Competent Persons Report 31 Mar 24 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 regulator and partners Continued strong support from regulator Successful financing increases cash balances to ~£3 million 1 Protected from any potential completion delays Accelerate pursuit of several new opportunities Placing & subscription to raise £2 million (gross) 2 Significantly oversubscribed Brings new, well-regarded institutions onto the share register Directors & management participated for 20% plus further on-market purchases Issue price of 35p, 4% discount to prior close (1) As at beginning Dec-24 including £2 million fundraising announced 2 Dec 2024. Excludes $640k restricted cash-backed guarantee held against DEWA initial work programme 7 (2) For full details, please see Seascape Energy Asia Placing and Subscription announcement on 2 December 2024 Farm Out of Block 2A 8 Transaction highlights Upfront cash, contingent cash, uncapped drilling carry and top tier partner Significant retained exposure  • Seascape retains material, 10% interest in Block 2A • Prospective Resources net to Seascape of 166 mmboe Uncapped carry  • Giant Kertang prospect is drill ready, no further seismic needed • Up to two well drilling program with no cost exposure Strong partner  • INPEX is Japan's largest E&P company, existing Malaysian operations • Operator of two, major regional LNG projects (Ichthys, Abadi) Total deal value worth >100% of Seascape's recent share price 1  • Material deal value • Cash element alone represents ~65% of SEA market cap 2 Reinvestment opportunities  • Reinvest cash into fast-track DEWA development • Pursue additional, near-term resource additions in Malaysia (1) Assumes full cash payment (unrisked), gross cost for two wells of $150 million, Petros carried interest of 7.5%, USD:GBP = 1.25 and SEA shares outstanding of 57.1 million, SEA share price of 40p 9 (2) Based on full cash payment (unrisked),, USD:GBP = 1.25, SEA shares outstanding of 62.8 million and SEA share price close 2 Dec 2024 Farm-out creates fully-funded platform Successful 2A farm-out marks important corporate milestone Farm-out of Block 2A agreed with INPEX Corporation 10% interest retained ( 42.5% divested ) Full, uncapped carry through the exploration phase: one (1) firm wildcat well one (1) contingent appraisal well 1 Cash consideration of US$20 million US$10 million payable in full at completion US$10 million contingent on a commercial discovery Reimbursement of historic costs (~US$0.5 million) Completion targeted at the end of Q1 2025 Subject to partner and regulatory approvals Block 2A Farm Out Valuation 2 Interest acquired by INPEX 42.5% Interest retained by Seascape 10.0% Back costs ($M) 0.5 Cash consideration ($M) 10.0 Full carry exploration phase ($M) 17.1 Contingent cash consideration ($M) 10.0 Total payments and funding to SEA ($M) $37.6 Implied gross value of block ($M) 88.6 Implied value for SEA retained 10% interest ($M) $8.9 Deal Value (cash+carry+retained) net to SEA ($M) $46.5 SEA shares outstanding (M) 62.8 Deal Value (cash+carry+retained) net to SEA (p/share) 59p SEA illustrative share price 40p Total consideration as % of illustrative share price 148% (1) Subject to a commercial discovery 10 (2) Assumes full cash payment (unrisked), estimated gross cost for two wells of $150 million, Petros carried interest of 7.5%, USD:GBP = 1.25 and SEA shares out of 62.8 million Attention : This is an excerpt of the original content. To continue reading it, access the original document here .

View stock analysis, news, and events for Seascape Energy Asia Plc