Seascape Energy Asia (LSE:SEA) — Investor Presentation

0:00 Yes. This is quite a good start. Good morning, and welcome to the SEASCAPE ENERGY ASIA PLC investor presentation. Throughout this quarter presentation, investors will be in listen only mode. Questions are encouraged, they can be submitted at any time just by using the q and a tab that's situated in the top right 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 the questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to the executive chairman, James Menzies. Good morning to you, sir.

0:32 Thank you very much, and good morning, everybody. Welcome to our q one investor update. We thought it's worthwhile just giving you a little bit of a reminder of what we're about and what's going on, particularly in light of our closing our farm out deal with Impex, which we announced yesterday, which we're extremely pleased about. So with that, let me remind you of the the the highlights. In terms of the board, obviously, most of you will be familiar with myself and Nick and also Pierre, who's often on these calls with us. We have made a couple of changes to the board recently. So Pierre has come up and joined the main board as a as a full on exec member.

1:18 And we've also added an additional non exec in in Haida, who is someone that Nick and I have known for many, many years. She's a she's a Malaysian national, extremely well known figure in business circles, I would say, in KL. She's ex patronas, but has worked with many many companies and continues to work with lot of companies in the region in the energy space. She's very enthusiastic, a lot of energy. She's very much a SEASCAPE sort of person, and we think she's a a great addition. So, we're really pleased to have her join us. Of course, have Graham and Geraldine, still with us who, I'm sure some of you will know.

2:06 In terms of SEASCAPE itself, I mean, I think, you know, we've got a small portfolio, but we are quite a rare thing. We are way a of playing Southeast Asia in a pure listed form, And there really is just very, very few companies out there that are a pure play on the on the Southeast Asian, you know, economy and macro that actually can demonstrate a track record of having got stuff done. So, you know, our small portfolio as it stands today has got higher value in terms of discovered gas resources, and it has exploration spice and sort of blue sky excitement in terms of two a, which is fantastic for us because now we have a carry on that. We're not having to look to fund any of that blue sky excitement. So it's it's a a really good move for a company of our scale to to get after.

3:06 I think we can also demonstrate, that we have a competitive edge. For a small company, you know, in any in any geography in this sector, it's extremely difficult to to gain an edge that few others, if any others, have. And I think what we've been able to demonstrate is is for a small company to get things done. The number of times we were asked how we ended up with two way, how did we get into day one? You know, what are we looking at? Why you? And it's it's it's they're good questions, but they're really testament to the fact that we we we get out there and as as you'll see, you know, we we walk we we're around this region. We're all over everything.

3:51 We know lots of people. We have the relationships established. And, arguably, we have extremely good credentials, particularly in Malaysia, where we've demonstrated ability to pick up acreage, to farm down acreage, to bring in partners. We've got a great relationship with Petronas that goes back a long, long, long way, and that's not something you can replicate

4:14 very easily. It's it takes a lot of time and effort. I think we don't want to be necessarily limited just to Malaysia. We do look around the region as you're gonna hear. And I think the other point I'd say is we have an ambition to create a full cycle E and P. You know, we wanna do it in a in a with in a port with the portfolio that has some coherence to it that kinda makes sense. We don't want to be wasting our equity capital, but we wanna use our relationships and do it in a way that is cost effective, but to build a portfolio that has all the requisite elements within it. And, you know, that's our challenges is how do we how do we get there. But we've made an excellent start. We're very pleased with that. And, you know, Nick and myself will take you through the highlights of both that transaction with Impex, but also, the rest of the portfolio.

5:14 Right. Good morning, everyone. Thank you for joining us. As James said, wanted to give you a little bit of an update following the announcement yesterday. We've been seeing some investors recently. I've had some great feedback. So, you know, it's important to us to engage also with our our wider shareholder base. So you'll be getting a presentation that that some institutions have gotten recently as well. So as you will have seen yesterday, we completed the block two a farm out. We've always said that we were gonna do this during the first quarter, so we delivered it on schedule. I had hoped that we were gonna be a little bit earlier in the first quarter, but what we've described it as is a highly structured transaction due to sort of some of the the nuances of it. But that really what that means is we're not paying any tax on that consideration because it was a corporate sale, so we get tax relief.

6:05 So indeed, the the entire

6:09 consideration of $10,000,000 plus our back cost of around $1,000,000 will be received by the business with no tax payable. This is gonna put us in a very strong financial position post completion. We're currently forecasting we'll have around £10,000,000 in cash at the end of this quarter. Obviously, we have no debt, and we're continuing to strive to keep our corporate overheads at an absolute minimum. However, as we're gonna explain to you today, we see a huge amount of opportunity. So having too small a team, not being able to chase these great opportunities that we're seeing is not a position we wanna be in. So therefore, you know, we've got a team and an entity, and and we're sort of positioned for growth.

6:58 And so that leaves our our corporate corporate overheads a a sort of a little bit over the absolute bare minimum of just a kind of a do nothing case. But really for us, this is because we see some great investment opportunities. As James mentioned, we've added two board members in the first quarter. Pierre has done an absolutely fantastic job. He's based in KL, and he's done a great job both in getting the the the farm out over the line, but also some of our growth ambitions, including day one and other things we're actively looking at. And, you know, we'll come on to this in a a little bit more, but there's a bunch of growth opportunities that we're seeing both on a sort of ground floor basis, so getting involved in some licensing rounds as well as potential acquisitions.

7:44 And to, you know, to us, that's where, you know, Haida joining the board has been a a huge benefit as well, expanding our network, expanding our experience across the region, and she's a really welcome addition as well.

8:00 Very good. Well, let's kick off with the day one. So by way of reminder, this is a block that is in shallow water offshore Sarawak. We picked it up quite recently together with EnQuest, and we have Petros who's the Sarawak state company alongside us as a partner. We have 28% of this this block. It contains 12 gas discoveries and fields, so a number of structures. And in terms of resource, we're seeing we're we're quoting three, four hundred Bcf recoverable. It's got a huge database. It's 35 wells, lots of three d. It got all the logs, all the all the test data, everything comes with it.

8:53 And I must admit, when we first looked at this, and and with at the moment, we're going through the refining of the of the resource numbers. So together with EnQuest, our partner, you know, that that work's ongoing as we speak. So we'll we'll hopefully update you when we have a refined view of that. But of the 12, you know, they're not all gonna be stunning. And in fact, an early look does reveal a couple of these structures probably aren't worth pursuing immediately at any rate. So there there's definitely been some some have been put on the back burner, but I'm also pleased to say some of them actually look a lot more interesting than we originally thought. And so there's definitely a sweet spot emerging within the acreage, and it's around that D 41, D 41 West and Darner area in the in the center of the acreage there. Those those structures look particularly good as does Dafna West to the South and D 30 and down out to the North.

9:50 So those those features are definitely highly rated, and we suspect that they'll be the the the place where we'll start first. So look out for an upgraded resource assessment to come out of this this acreage. As I say, the dataset is very fulsome. These features, you can see them very clearly on seismic. They light up in terms of amplitudes. So in terms of technical risk, this is quite low. You know, we we we've got a lot of information about these reservoirs. So that's it's almost like being awarded or making a series of gas discoveries yourself, but, you know, we don't have to go through the pain of of doing that. This is awarded to us by the state.

10:41 On the next slide, you can see the other great feature of these, these these licenses, and they're they're called DROs. They're that's a direct, resource opportunity direct award, is that the terms have been sweetened. So we're getting much better commercial terms than you would normally get for a PSC, in Malaysia, where roughly 50% of the economic rent is coming to us, the contractor. Typically, we would see circa 30% from Malaysian POC. So Petronas are really trying to encourage us to get out and get on with this quickly. They realize that most of the companies who are active in Malaysia, this is not on their radar screen because it's too small for them.

11:27 So they need to incentivize smaller players and the mid sized players like ourselves and inquest to take these opportunities and really push them and run with them, very hard.

11:39 Given that it's in in shallow water in a very busy address in terms of the basin, there's lots of infrastructure around here. So we've got a couple of tie in options where we can get into pipelines. The gas will go back to shore, back to Bintulu LNG, which you'll you may be familiar with from seeing our previous presentations. You can see one tie in point here is 43 kilometers away. Another one is 24 kilometers away. So, you know, when it comes to it, it will look at the the available in those evacuation routes, which makes the most sense to go. We think we'll get something like a 100,000,000 scuffs a day gross from the production in this block.

12:25 And the gas pricing here is pretty good. It's related to what we call MRP, the Malaysian reference price, which is typically been between 6 and $12 an MMBtu. That's the sort of trading range it it moves within. And it's low cost. You know, it's shallow water. We're looking at very simple unmanned platforms. You know, I was I was very pleased to, to receive a brochure from, Petronas advertising secondhand equipment. They have to decommission a lot of platforms, and they recognize that there's no reason why people like us couldn't use secondhand kit here. And, you know, why not why not reuse something rather than go and fabricate new new platforms, though, and you don't have to. So that sort of thing is fantastic and and it keeps the CapEx low, OpEx low.

13:22 So, you know, we're gonna we're gonna see some great returns from this, and we would expect production probably to start up in 2027. So that's gonna be a big year. And if we don't do anything else, this would be SEASCAPE's maiden production. And net to us, this is roughly 5,000 barrels a day in in in terms of a volume. So a really exciting asset for us. It's a good size. I think our interest is about right, and it's a high quality asset. You know? Good good quality gas, great market. It's simple. It's the sort of stuff we we we really love. Quick reminder on two a. You know, this has been our flagship project. You know, we have been known in Malaysia as the company that had the two a block, and it and it caused a bit of a stir, you know, I'll say.

14:14 I I think this farmhouse caused a stir in the industry because, you know, it's a good a good it's a good deal. Everyone's happy. The the the impacts, the Japanese are delighted to get hold of this. It's got a lot of exploration potential around Kurt. It's not just Kurtang. It's around around Kutzang. There's Kutzang look alikes smaller in size than Kutzang itself, and there's shallow potential. So for them, they've got a lot of ambition to get a big upstream position here. The Japanese being huge buyers of LNG out of, out of Bintulu. So they're pleased to to get it and to and to have the the operatorship. We, of course, are delighted because we have a 10% carry. We have cash in the bank.

15:03 So it's it's worked very, very well for us and our shareholders, and we have really just been the conduit for this activity. We can reinvest that capital back into Malaysia to go and develop shallow water gas. So the state of Malaysia and and Sarawak are also pleased to see this happen. So everyone's smiling as a result of this transaction. And, of course, we would like to see this well drilled. It's gonna be a very, very highly watched well in in Malaysia and and the region, so there's gonna be a lot of attention on it. But having been the flagship project for us, you know, we are becoming a passenger. This is gonna be MPEX's project. We have an uncapped carry, so we're not sensitive particularly to the cost of drilling the well.

15:52 And so, you know, one thing, when when we talk about what next for SEASCAPE, I think having the flagship asset is gonna be important for us. I'm I'm a firm believer that companies like ours need you know, you need to plant your flag in the ground and and have everyone look at a look at a project, look at an asset, and and associate you with that. And that is that becomes your, you know, part of your identity. So we're we're definitely looking for something like that. But this has been brilliant for us, and we're you know, we talked about it a lot, but we're we're we're very delighted. And Nick can tell you about the the the Just go through, just as a reminder, as to the sort of transaction we did with Impact. For those who don't know them, Impact is Japan's largest E and P company.

16:38 It's actually owned about 20% by the the Japanese government. So this in many ways is is a is a sort of agent of of, you know, Japan Inc. It's got around 630,000 barrels a day of production, which is around 10% of Japan's annual primary energy consumption. So

16:55 it's quite big. And they're also sort of very much a regional player in these LNG projects. So it's another reason that we like them. In addition to the transaction, you know, they have the wherewithal to move a project like this forward. You know, it's a deepwater well or two. And so, you know, we feel very comfortable in their capabilities to move the whole project forward. So just as a recap on the transaction itself, we will retain a a 10 carried interest. It's a full uncapped carry on two wells, so that's a exploration well and a contingent appraisal well. And when we say uncapped, it means that they will keep spending, and we will not have to spend a penny, not sort of from now until, you know, hopefully, discovery and and and appraisal.

17:42 So that's fantastic. So we end up being, you know, complete all the upside and don't have to worry about any drilling problems if they wanna test, if they wanna do whatever. That's absolutely fantastic. We're highly encouraging them to do so. So so that's that gives investors real exposure to this upside without the fear of dilution. We also received $10,000,000 upfront in cash, and we're going to also receive, assuming a discovery, contingent cash consideration of $10,000,000. The trigger for that really is is moving the PSC out of the expiration phase and into either what's called a gas holding phase or effectively moving it through to development. So there's no kind of volume trigger or anything. It's just whether or not this proceeds.

18:30 As James mentioned oh, sorry. We also had a a million dollars of back costs. And, actually, to try and help contextualize that, you know, with sort of all this money we spent capturing and working up the acreage, you know, even on just a sort of cash on cash basis, we've had a 10 times return on this, which is absolutely superb. And, you know, huge credit to the team and all the work that's gone in historically to that, work it up, and run a really competitive process. We've had a huge amount of interest from a very wide range of very large companies. As James mentioned, the operatorship has transferred to Impex, and they are hard at work already. In fact, there was a a joint venture meeting last week in Kuala Lumpur, and they are targeting a a firm well commitment for the the summer of twenty five.

19:19 You know, once that commitment is is done, then they'll be looking for a rig, and we'll have a better view on what timing is.

19:27 You know, most the most important thing for me, though, through this whole process has been developing a great working relationship with Impacts. You know, we really value them, their their capabilities, how they come into Malaysia and built a big exploration portfolio. And we definitely see scope to collaborate them and with them in the future, and and we think the feeling was very much mutual in in in what we brought to the The real question is is what does this mean for value for for us? And what we've tried to do here is is just give a bit of a, you know, back of the envelope calculation on that. I know some of you will have access to research, some of you won't. But just sort of in terms of sort of putting a bit of a finger there, we can sort of see what the the cash value is of the business as of the end of the first quarter.

20:18 We also have a a sort of an implied farm out value. So taking what we received for our stake and then implying that on that 10%. So what is the value of of the carry on that and the contingent consideration? And in fact, we put that calculation in the appendix to this presentation, which will be going on to our website after this. But, therefore, you can kinda get a sense for what that value is. And, actually, if you add in that contingent payment that's in the blue there, you get to 61p a share, you know, versus around sort of 35, 37 where we've been trading recently. So, actually, just in that format alone, you know, the the business seems, know, very, very undervalued. You start adding in the resources that we've got, Daywa.

21:04 What we've done there is we've used a a big purchase made by Total last year of two different entities that were actually sort of a joint venture between Sapura, a local business, and OMV, a European business which had a very large gas weighted portfolio in Sarawak. So completely analogous here. They paid about $4 a barrel of oil equivalent. That was some production with a lot of resource to be developed going into into Bintoulis. These are all export volumes. And so paying about $4 a barrel, if you transpose that onto our stake in on an unrisked basis, you see hard value of about a pound 40 a share. Of course, you start adding in Caretag on an unrisked basis and, you know, effectively, sky's the limit. You know, £10 is a a far cry from the the $35.40 pence a share we've been trading at. So we're really excited to try and work to unlock that value for shareholders.

22:04 And, you know, the the research

22:07 believes that as well. So we've got surprise targets from our our two brokers, Stifel and Cavendish, well in excess of a 100% of upside from from where we sit today. So look. We think that there's a huge amount of undervalueness in the shares, and we'll be working to unlock that as we move forward. Yeah. So we'd like to say a few words about, you know, what we're what we're doing elsewhere in the region. And if any of you follow us on social media, please, I would urge you to do so. But you will know that the team have been have been running around recently. We've been effectively, want to put a better phrase, we've been marketing ourselves on the back of our two way deal to, you know, other governments and and regulators and industry bodies in in Thailand, in Brunei, you know, Cambodia,

23:06 in Indonesia. So, you know, we we already have quite well established links in all these places, but it doesn't hurt to go and and visit. And Vietnam's another one, you know, to to to visit and remind people what we've been doing for the Malaysians and, you know, maybe we can help them. And and it has yielded a lot of interest from people, so it's it's been a big talking point in the region. So we're just trying to really capitalize on that and and make sure that it's understood and and people, you know, understand the the strengths and that we have and what we can bring to the the table. And, Nick, I don't know, maybe you wanna give some of the highlights. Mean, so we can do that. We've been prolific posters on social media a little bit just to sort of give an idea of us running around. I've been in the region a couple times already this year. Personally, James is out recently.

23:59 Obviously, we've got Pierre and there all the time. But, you know, look, what we're seeing is quite a bit of elevated activity. This is I I think, realistically, what this is is is around sort of transition stuff, sort of taking a little bit more of a backseat in the current political environment. We see majors starting to get worried about the the decline of shale coming in the next five years. And so a term which I've used is about the reinternationalization of majors. So so and what we see there is that the regional governments are trying to capitalize on this desire to put investment into hydrocarbons. And so we see a lot of people scouring and looking for opportunities. Of course, we're there. We're at the forefront of all this, and and we're really leveraging our network to try and see what we can get in, you know, ahead of the crowd.

24:49 We the Malaysian bid round 2025 was launched recently in February. James was there at the launch. And, you know, that includes sort of some exciting DROs like we have with as well as some exploration acreage, both sort of frontier stuff and kind of near existing infrastructure. Thailand, we've seen launch a onshore round, but also we believe they'll be launching another offshore round. Murphy's made a big discovery in Brunei. So there's lots of stuff going on. I think the key for us is is trying to find, as James says, a flagship opportunity in order to really sort of plant our flag in the ground and and use that in much the same way we've used DEWA and 2A to push forward the value in the business and and to get in early and look to use that as a way of monetizing and funding, you know, work programs going forward.

25:45 You know, there's no person speaking this stuff up. We can't finance it, and we're really committed to trying to get in early and use that as an asset to finance the business going forward, so minimizing any dilution. You know, we are very leveraged to the to the to the share price. Management owns 6% of the business, and, you know, we we are aligned very much with our shareholders wanting to create value per share sort of for sort of about minimizing the of shares we issue. Very good. Yeah. I mean, I I think just on that map, you know, obviously, we we feel we have a probably more of an edge in Malaysia than anywhere else, it's fair to say. So, you know, people often ask us, well, you know, what's your number one target?

26:38 And and, obviously, we're limited by what we can say about business development generally. But I think we're always one thing today is we're always open to opportunistic events. Things can fall in your lap suddenly out of the blue when you don't expect it or events occur that you you you feel you should react to because, you know, something is just too good an opportunity to to miss. And it does happen. So we're always alert for that. And I think keeping some powder dry and making sure we're not stretched too thin that we can't fight something like that off. We'll have the network to bring in resources to kind of deal with something like that. It's it's something as a little company, you've gotta be able to do. But other than that, I think, you know, Malaysia is obviously, you know, up there as as somewhere where we're putting a lot of effort.

27:28 But equally, I think, you know, Vietnam's got something it seems to be waking up a bit. It's got some interesting things. Thailand, as Nick was saying, you know, the onshore perhaps, maybe not, but the the offshore, definitely, there are some interesting bits there. Can we find another two a?

27:46 You never know. I know. You never Never never say never, but they they are sort of, you know, once in a decade. I don't know. Maybe maybe lightning can strike twice. We'll we'll see. But, you know, I'm I'm very wary about believing our own whatever. But, yeah, it it's it's gonna be difficult to find another one in short order. But, anyway, there is a there is a quite a long list of stuff to chase. We definitely have our favorites. So we have a, you know, a top three and a top one or two that we are very, very hot on. So, yeah, we're running we're running very hard. So just to talk about the, you know, the rest of it, I as I've mentioned earlier, you know, we would like a a full cycle portfolio.

28:36 If we have to wait for day one to deliver that production, then we'll wait for that because we can do it. So that's there as a backstop. If all else fails, or if we can't find the the the way to get, cash flow into the portfolio in a value accretive, sensible manner, then we will do day one, and that will be our main production. And that's okay. We're very happy to do that. So, you know, we will we'll we'll continue to look for those opportunities. We really don't see many others. There are, you know, there are we do have competitors out there, but not many of them are listed. Not many of them are really technically led. I would say, I think few of them have cash on the balance sheet as we have, and few of them have the relationships, the network that we that we enjoy.

29:29 So, you know, we we do have very, very strong advantages over pretty much most, if not all, our competition, I would say. And the assets we hold, we know are really high quality. And that is another big differentiator is is it's it's you know, there it's easy to get your hands on on lower quality assets. We don't wanna compromise on that given what we have right now and the things that we've got in the crosshairs. There's no point in in in downgrading what we have, so we see no need for that. And we have the skills to be able to to pull it off. We we've already demonstrated that. So, just think upcoming things, Nick. Yeah. I mean, look, one one thing we're very conscious of is the momentum is key for these small businesses, and we are very focused on maintaining that momentum. We had great momentum out of last year coming into this year, and we really are running out some some very interesting stuff at the moment. Obviously, we completed two a.

30:32 Keep an eye out for the the well commitment. As I said, we expect that to be this summer. Day one resource assessment, you know, we'll be looking to, hopefully, at some point, publish a a CPR once a lot of that underlying work has been done by EnQuest alongside ourselves, hopping out on subsurface, and we are actively looking to to build out the portfolio. So keep an eye out. And I guess maybe with that, we'll stop and answer a few questions. Perfect, Nick. James, thank you very much for your presentation. Ladies and gentlemen, please do continue to meet your questions, and you can do so just post in the q and a tab that's situated on the top right hand corner of your screen. But just while Nick and James take a few moments through the questions that have been submitted today, I'd like to remind you that recording of this presentation along with a copy of the slides and the published q and a can be accessed via investor dashboard.

31:18 As you can see, we have received a number of questions throughout today's presentation. At this point, I'll just hand back to you to read out the questions, and I'll pick up from you at the end. Okay. Perfect. Give me a minute just to get a quick scroll through all the questions exactly. Okay. There are a couple questions here around what the impact of the rumored SEASCAPE well, I guess it's not rumored anymore. The lead merger between EnQuest and and SEASCAPE. Yeah. Yeah. So a few people worry that that's gonna have a a negative impact on on the sort of on slowing down. I mean, I I will say, again, speaking very personally, I you know, the North Sea at the moment is all around financial engineering and cutting costs out of the business, so it's it's kind of a a race to the bottom if you were in terms of how you combine businesses and how you create value. It's not about finding or developing new resources. It's about how you finance engineer these things. And what we've seen from MenQuest actually is is quite the opposite. We've seen them actively buying things.

32:22 They recently bought an asset in Vietnam from Harbor. Obviously, they came into Daiwa. They announced a gas sort of development at their existing asset called Saleki in Peninsula Malaysia. So, actually, I see quite the opposite. I see them looking to Southeast Asia as a real growth engine, and everything that we've seen from them in a recent joint venture meeting on Day one has been quite the opposite. I mean, they are running sort of full pelt at it. So I don't think it has really any impact. And in in in reverse, it may actually have a hugely positive impact as they use Southeast Asia as a bit of an engine for growth. What proportion of cost being reimbursed to SEASCAPE as part of the deal? I assume this is in relation to two a. Basically, almost all of them. Almost all of them.

33:09 So we spent very little in the deal capture there. We had to work it up. So so, actually, we're getting almost all of our our back cost back. And I I think in the presentation, went through there. It's about a $1,000,000. There we go. Another a couple of Inquest, SEASCAPE ones. Okay. ReDewa, has there been any flow test done? And can you give some input into stable production expectations from Dewa? Yeah. There's extensive test data available. So, yes, most of these wells have been tested. And I think we have given if not in this presentation, but we have on our website, if there's presentations with test with flow rates already there. I mean, we've seen gas flow, you know, up to 20,000,000 scabs a day, I think, on the best looking test. But it's important to understand that the the that area is surrounded by some oil production in a in in d thirty five.

34:10 And the previous operator of the block was a consortium that was really looking for oil. So most of the tests that were performed were on oil zones within these wells. So you see oil and gas in most of these wells, but they didn't they they ignored the gas completely. So effectively, these gas accumulations are virgin. Now they haven't really been produced. The prior operator did produce something like one to 2,000,000 barrels of oil. I mean, very small amount of oil ever came out of this before they focused efforts on the surrounding acreage where they've been very successful in terms of oil production. And that's why this gassy area was left behind. So so, yes, there is extensive test data. They haven't really made it on the gas, although, you know, some of it was flow tested, but it's it's largely untouched. But we know the reservoirs are great quality.

35:06 As we look at the deliverability, they look very, very good. The mobilities look excellent. These are well known plastic reservoirs in this area. You know, we're not gonna see any surprises. So as I mentioned earlier, the technical risks are are very, very, very little, very few. Right. And so another question here about the resource assessment on day one. Is there any opportunity to accelerate that? Look. There could well be an opportunity to accelerate those. When we talk about the resource assessments, that's part of the package that needs to be delivered to PensionAsk as part of the the conditions of of having the license. But, certainly, there's a biggest sort of acceleration on those key priority fields that that James was talking about earlier.

35:55 So there may be an opportunity for us to to have a view, put that out more publicly on those sort of fields as opposed to the whole thing, that these things do need to be choreographed together. So we are are hump humps on a little bit by by our requirements on the license and everything. But I we've tried to give our views on it as we go, and we'll continue to be, you know, open and and communicative where we can on those. But the resource is is quite significant and possibly even, you know, bigger than what we've seen originally. I think I think one one other point to to mention that we we've seen some undrilled fault blocks in Dayo R as well, which is is effectively step out exploration, but they were never really considered when we when we applied for the acreage. But it's become apparent there are some step out of exploration opportunities where we'd expect to find gas in in high quality reservoirs.

36:47 So the question on cost to bring on stream in terms of what is gonna be the the the cost. I think we've given a little bit of guidance in there. We say sort of 5 to $7 of BOE. We've given sort of the range we think the recoverable are. I think the crucial piece of that question is is the phasing and how that phasing will sort of ultimately be done. So do you do it all at once? Do you sort of phase it over a a period of time? Therefore, kind of where is your sort of low point? And and our hope of what we're working together very actively with EnQuest, and they're very aligned with us on this, is is ensuring that the phasing means that you're kind of producing at the earliest possible stage and then using the funds from the production to sort of help with the help finance the the further phases of of development so that it's not sort of you don't spend everything all at once and turn it on, but you're spending in a way that keeps a plateau, keeps cash flow coming in, and so your your your minimum never gets too low.

37:44 You know, we have already started to investigate financing. There's a lot of interesting options out there at the moment. We see banks coming in. There are bonds to possibly. There's traders who are financing this stuff. We're still at the very, very early stages of that, but, certainly, we'll be looking to put a significant amount of debt finance on this opportunity rather than looking at at equity. Again, just wanna stress that, you know, for us, it's all about creating value per share. That's how we are incentivized, and we're aligned with with our shareholders in that sense. When do you anticipate the exploration well to be drilled on two a? I think along I mean, we we don't probably the problem is that the impact is now taking over as as operators. We've gotta hear what they've got to say. Yeah. Yeah. They have, I mean, they have other blocks, other drilling commitments in in the region, so they'll put a program together. We would you know, I think if you if you think about the back end of twenty six or maybe early twenty seven, it's gonna be something I would guess it'll be something like that. But once the commitment's made, then hopefully the timing window will firm up. But if you hold that in your head, you're probably not gonna be, you know, too far off.

39:01 Do you wanna know how close we are to maybe landing deal? A Obviously, we can talk about that. Look. We are working very hard on on a few fronts. The target is really to materially expand the portfolio this year. Yeah. I think it's probably all we can say. So we're not gonna you know, we're not kicking our feet up in in any sense. We are are already pushing on a on a on a few things in particular. Like James said, we had a couple of things that are already high graded. So, you know, just let's let's keep an eye on it. Shares are undervalued. Does it mean you won't raise equity at current levels to finance deals? No. So, obviously, the benefit of this cash coming in means that we've got, you know, enough money to chase, especially, you know, day wise type opportunities without having to go to the market. We've seen that create a huge amount of value.

39:55 Certainly, we're very, very focused on value per share. So, you know, raising money to buy production that is gonna be, you know, that that's not value accretive, just, you know, not of interest, which is why we're just doing other stuff at the moment. Oil prices coming off a little bit. Maybe that opens up some opportunity, but we're certainly not gonna force anything. As as Jason, we have a great portfolio that can deliver organically. What do you expect the company's cash burn to be during '25? I think we answered that previously. The g and a is running about, yeah, around about £3,000,000 a year. Do do we do we see any effect of muted okay. I think we answered I think we answered the one on on the question.

40:54 That does I think that's probably just about it. Let me see if there's anything else. Let me see if we take one more. No. Actually, I think we've I think we've we've hit most of them. Okay. There we go. So I think that that's that's all for today. Thank you very much to everyone for joining, participating. You know, keep an eye on us. Keep we'll keep doing these. We've committed to doing these, you know, as often as as as as required. It gives a great way for us to communicate with all of our shareholders, but we've also got the stuff on social and, you know, watch the space. Yeah. Very good. Thank you very much, everyone. Nick, James, thank you very much for updating investors today. Could I please ask investors not to close this session as you now be automatically redirected to provide your feedback in order management team can better understand your views and expectations?

41:45 This only take a few moments to complete, but some should be greatly valued by the company. On behalf of the management team of SEASCAPE ENERGY ASIA PLC, we'd like to thank you for attending today's presentation, and good morning to you all.