Seascape Energy Asia (LSE:SEA) — Investor Presentation

0:00 Good morning, and welcome to the SEASCAPE ENERGY ASIA PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged, they can be submitted anytime just by using the q and a tab that's situated on the right hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review the question it receives and publish responses where it's appropriate to do so. Before we begin, I'd like to start the following poll, and I'd now like to hand you over to James Menzies, executive chairman.

0:31 Good morning to you, sir. Good morning, and welcome, everyone, to our presentation this morning. We're gonna talk about the farm out of Block 2a, and I'm here with Nick Ingracia, the chief executive, and Pierre Eliot, who runs our business in Malaysia. And I think they're well known to everyone. So so last time we were talking to you wasn't that long ago. We've just signed the deal. Went down very well, and, you know, we were trailing this farm out of two a two investors, and we're delighted yesterday to to announce it. So we wanna dwell on that and give you a lot of detail around the transaction itself.

1:17 And Nick's gonna do that for us, and Pierre is going to do a little refresh on what KurTang is and why it's so exciting. But before we do that, I just wanted to say a few words about Southeast Asia and our pivot. You know, I think SEASCAPE NOW has repeatedly demonstrated our ability to do business, particularly in Malaysia, where the capture of 2A, the award of the Dewa block, the farm out of 2A, we can get things done in Malaysia. And, really, investors should expect us to do more. I think, you know, we as we'll talk about, you know, we're we've got very few competitors of our scale for whom these opportunities are material. You know, we are one of very, very few companies, and there's a huge opportunity there right now.

2:11 And, you know, what we're saying on this slide here about the the Southeast Asian industry dynamics is it's it's actually really well positioned for companies like ours. You know, we have a role in life there. The the host governments want us to do things. We're encouraged by people, and we just contrast that with Europe. You know, The UK is particularly bad, but even Norway was, you know, not looking so attractive. So and I think the the the way and the speed with which we've gone about getting this portfolio built is is telling you, you know, that this is an area which wants companies like us.

2:50 So expect to see us do more in Malaysia. I think we'd like to do more in the region. We're definitely looking around the region. We'd like to build a full cycle portfolio. And, you know, as we'll talk about, we're now so well set up to do that. The balance sheet is in excellent shape. The the the small portfolio is is great, is brilliant. You know, it's got all these really exciting elements to it. And we've got the team, which is another critical part of this is having the right people. You know, we're a small team, but we've got all the relationships and we've got the right skills. So just moving on, what we have today, two blocks offshore Sarawak. So this map on the right just shows you where we're located.

3:38 That's the coastline of Sarawak. The Bintulu LNG plant is is shown on this map, and that is where all the gas in this basin goes. And and so these are the oil and gas fields in that basin, and you can see, you know, it's it's one of the biggest producing basins in Malaysia. And we are in the Deiwa Block, the one we talked about last time where we have some in shallow water. We got 12 gas fields there that we're looking at developing, four of those, fast tracking that. We're working with EnQuest. And we so that's the hard value aspect of our portfolio. And we also have the deepwater two way, which we're talking about the farm outfall, which is the blue sky angle.

4:24 And we'll have a look at that. Look at the potential value of those things, you know, 70 p a share for DAYWA. If if 2 a comes in, you know, it's going to be $8.09, £10. Who knows? It's a lot. So and that's one of the things we, you know, we'll we'll talk about the the the the 10% retained interest. If we'd kept 15 or 10, it doesn't really matter. If this works, it's gonna be huge. So we were not really that sensitive to how much we retained, and 10% is still very, very material for us. We also announced a financing. So we raised about £2,000,000 through placing. And really, the main reason for that was to make sure that we were able to get through to closing this farm out deal.

5:17 And that would have been the biggest own goal we could have scored would have been running out of money before we closed, having done what what we view as an exceptional farm out transaction. Not being able to close it would have been terrible. So this ensures that we get there. And at the same time, we can continue to review new business opportunities. We can continue to work on the Dayuar project. And so none of that gets disturbed, and we can get ourselves through to closing. It is Asia. You know, things take sometimes take longer than you would expect. But anyway, those concerns have gone away. So that's what that was about, and it puts us in a in a great position in terms of our balance sheet.

6:03 So what I'm going to do, I'm going to hand over to Nick, who's going to take you through the details of the transaction itself. It's great. Thank you, James. Good morning, everyone. It's really nice to be speaking with you this morning. Really momentous day yesterday, actually, and and really the culmination of a huge amount of work from a huge amount of people. And we've you know, we were just so pleased to to finally have an opportunity to announce the transaction to farm out to a to to Impact. So as James is saying, just we'll go through a few of the highlights here, and then I'll go on to the detail of the transaction itself and then walk you through the the valuation and and how we should see the value feeding through to the share price.

6:49 So, you know, I think the main point here is that that there's a huge retained upside even though we farmed out perhaps a little bit more than we had initially intended. The the idea was really to to make sure that we still had a material exposure to it. And so a 10% interest still gives us a sort of net perspective resources of a 166,000,000 barrels of oil equivalent, just shy of a of a TCF. It's, you know, a very, very big prospect for us. It's very material with the upside we'll kinda come out to in terms of share price. I think another big thing to dwell on is the fact that we've got an uncapped carry here. This is not something you often see in the industry where effectively we have no cost exposure whatsoever to that to exploration program. We'll go through what that is on the next slide, but but it means that there's no potential for us to, you know, hit some sort of cap and then start getting diluted down.

7:50 You know, no matter what it costs, it's it's gonna be met by impacts. And that is that is, I think, a real real key piece of the transaction we're able to to negotiate. And, you know, I think the other important piece there is that there's no further seismic needed. So Pierre will come on to the sort of the the technical side. But the you know, I think we've seen some farm outs where there needs to be seismic before wells and all that sort of stuff, but, you know, this is on on course to be drilled, you know, in the the near to medium term, and no further work needs to be done. So that's fantastic. Impacts, we see, is a very strong partner. I'll come back to that, but they're, you know, very well placed regionally. One of they're Japan's largest E and P business, $16,000,000,000 market capitalization, 600,000 barrels of oil equivalent production, real sort of global operator, and and we've been very, very impressed with the engagement to date.

8:45 The deal value itself is is worth over a 100% of our recent share price, and cash element alone is is also about 65% of our our current market capitalization. So this is a real sort of material transaction even before drilling for us.

9:03 And as James said, we'll be able to use the the funds raised to to to reinvest into the development, which is moving forward at pace and the look to add more resources in in Malaysia for their field.

9:19 So just going through a little bit of the detail on the transaction. We've retained a 10% interest, so we're divesting 42.5% out of the 52.5 that we that we held, and I'll go through exactly how that's being done. As mentioned, we have a full uncapped carry through the exploration phase. The exploration phase actually includes wildcat well, so an exploration well, and then there's also a contingent appraisal well. Pierre will come out onto this later during the technical piece, but this is a very, very large structure. It's likely to need an appraisal well to to understand the full extent of it, and the fantastic news is it will be carried through both of those elements. So we'll get to really test the the, you know, entire scale and size of this structure and be carried through all of that.

10:08 The cash consideration is $20,000,000. There's $10,000,000 upfront at completion, and we have another $10,000,000 contingent on a commercial discovery. That commercial discovery will be, you know, decided by the partners in conjunction with Petronas at the time of drilling. But, you know, likelihood is with many of the recent wells drilled nearby having discoveries, we think that actually commercial levels could be, you know, quite a bit smaller than than the ultimate size we think it's going to be. But I think that that bodes well for us being being able to monetize at some point. We're getting a reimbursement of historic cost of $500,000. And and again, to put into context, you know, and this is something we pointed out through our discussions on the fundraising, which was that, know, you we've been able to capture this opportunity for only $500,000.

11:03 Don't forget we got all of the data for free as part of the original license award. And so being able to take that and and turn even just the the some cost, the cash on cash return for the $10,000,000 upfront, even excluding all the value associated with the carry has has been absolutely huge. The completion is targeted for the end of the first quarter. As James said, you know, where there's always a chance it could get delayed slightly, but, you know, there's been a huge amount of support, through our socialization, with, Pension Us, and they're very pleased that this has sort of come about. So in terms of just evaluation, I just saw on the right hand side, we'll do sort of a quick run through that just so people can understand how, you know, we've come to these calculations. We've got the back cost, the the cash consideration upfront, and also the the contingent cash consideration, and then the exploration carry. So we valued that at $17,000,000 that's effectively the two wells.

12:02 Our work has shown that we think that a successful well is something like $75,000,000 well. There's also an element where we where where impacts will be carrying the the local state, Petros. So we are we are actually we don't have to carry any of those costs either, so we get a slight uplift there. So the the element that is being carried on our behalf, we get a sort of 10% completely, completely carried interest. So it gives us just shy of $40,000,000. You gross that up, and then sort of that's what the residual piece is worth, sort of $9,000,000. So if you add those two together, it's something around $47,000,000, divide that by the new shares outstanding, you get 59 p. And, you know, as you can see with the share price, it's been around, 40p post announcement. So, actually, the total consideration is is at a multiple of the current share price. And so we're we're really pleased with that.

13:02 In terms of the the the sort of structure, mechanics, some of our thinking, because I know that that we've seen sort of some questions. We've had questions from people. So 15.75, you've gone down to sort of 10%. You know, I I think that as James was saying, the mentality really has been that, you know, it's such a material prospect that, you know, 10 or 15%, you know, it's there's not really that much in it. We had a huge amount of of global interest in this prospect, gave us an opportunity to run a very, very competitive process with a very sort of strong dynamic to it. But really, sort of, what came out was that a number of the the players wanted, you know, significant stake in this. So we took that as a very sort of positive indication, and it allowed us really to maximize the upfront cash element.

13:51 And for us, that's, you know, very, very important because it allows us to reinvest into the portfolio, both into DEWA and elsewhere without diluting shareholders. And we saw that as being a very important given the fact that the upside is so huge anyway. So so that was, you know, the the decision really to to take the slightly larger farm out rather than the smaller one. We've structured this in a way to ensure that there's no tax payable, you know, had a lot of and that took us some extra time. I know a lot of people are wondering, you know, what's been taking so long, and that's been part of it, is getting the the the structuring right. And, you know, it should be a relatively straightforward process in terms of kinda getting the the transaction approved by Petronas as well as our partners, Petros and Petronas Cherry Galley.

14:42 In terms of impacts, for those who don't know them, know, impacts is Japan's largest E and P company listed in in Tokyo. It's actually a quarter owned by the Japanese government.

14:54 Its production is around 600,000 barrels of oil equivalent a day, which is a is about 10% of Japan's annual energy consumption. So this is a big important player in Japan. They're operating two regional LNG projects, one that's in production in in Australia and one that is going into the development phase in Indonesia. So, again, having a partner who's able to take Keratang, you know, on discovery through to development is really important for us, and and, you know, they've proved themselves so far to be a very engaged partner listening to us and and working together with us. And, you they've had this regional presence since since the seventies and have a real resurgence into Malaysia. They kind of reentered Malaysia at the same time that that we did in the MDR Malaysian bid round 2022, And you can see they've been busy picking up acreage all around Sarawak and adding 2A has has been a high priority for them for for quite some time.

15:56 In terms of the value, what does this mean for us? You know, what we've done is given an illustrative implied value on the portfolio based on a transaction or two transactions that Total Energy undertook earlier on this year, where they did a series of two transactions to buy out Sapura OMV, which is a large regional gas focused producer. So this is a business that had a little bit of gas production, but actually quite a bit of gas development. Again, all going into Bintulu. This is all going you know, these are equity LNG volumes,

16:32 and they paid about $4 a barrel of oil equivalent, so $4 BOE. And if you push that across to the resources that we believe we have in both and in, you can get some very, very big numbers. And including in that, you know, the farm out contingent payments, the the cash value that we've got and the and the value of the farm out, you know, we see a a hard value of of about, you know, just shy of 1.5 a share and then total value of up to £10 a share. So, you know, these are huge numbers versus where the the stock currently sits, and, you know, we think there's all to play for here.

17:11 Great. So by way of reminder of Kurtang and why, why all the excitement and the interest from the industry, who better to give us a reminder than Pierre? Thanks, James, and hello,

17:30 We just wanted to run through the assets. We'll run through 2A and run through Dareware, just a few slides on those. I really like this map for context, just shows the competitor landscape that we have in Sarawak in and around 2A. East Malaysia always dominated really by Shell and by Petronas for many, many years. Of course, players coming in Total and of course, Impact's coming back, but also ConocoPhillips and Mubadala and others. So a real wide competitive landscape, but of large players and then SEASCAPE. I think it's really testament to

18:12 the opportunity set that you can have different companies operating in Malaysia and in Sarawak and each company adding value in their own way. We signed this block in February 23, and it's a large block, 12,000 square kilometers, and the water depths vary across the block with the water depths of the location about 1,000 meters through approximately the location of the well. And we'll go through that in a minute.

18:40 The format to IMPEX is terrific, of course, and it's been and Nick alluded to the journey that we've had with IMPEX over the past few months. And it's just been great. And one thing that sticks out for me is that we liaise a lot with the general manager in Malaysia, Konishi san, and he was actually part of the discovery team working on Abadi, the LNG project that Nick just mentioned, when he was a younger geologist. So it's great to see that appetite for exploration coming through. So let's run through the prospect itself. This is an east west line across prospect on the left hand side. We've seen that several times, but I think it's really important to remind ourselves of the prospect and how great it is. I must say, in my career of exploration, I've not seen really a better prospect.

19:35 And it's really stunning in many ways and certainly deserves to be drilled. It's very interesting to see it in its context of the other discoveries in Malaysia the three boxes there on the bottom right, because each of these discoveries are each of these discoveries have a really significant, really high volumes. You see the volumes there, Kasawari six TCF, Lang La Bar five TCF, Marjoram over two TCF, and the operators there, Petronas, PTT, the ties and Shell. What's really interesting about these discoveries are the column heights. Touched on this last time. But the amount of gas that's between the caprock and the the gas water contact, the distance between the cap rock and the and the gas water contact can be over a kilometer.

20:23 So over a kilometer of rock filled with gas. That's certainly the case in Casa Wari. The Casa Wari Column is just shy of a kilometer. In Langlovai, it's some 800 or or so meters. And in Marjoram, it's some 450 meters or so. 450 meters. So that 450 meters is exactly the height of the Petronas Towers. So it just gives you an impression of the the columns that we have. And the reason why the gas volumes are so big is is because of these columns. So in in our current tank structure, when we model the volumes, we model a 600 to 800 meter column for the gas column between the caprock and the contact, and and that's giving us these kind of volumes. So modeling a 600,800 meter column, which is in line with the columns we're seeing in those analog fields, we're getting volumes of about, you know, 90 CF, which is that that that mean resource volume that we have from the auditors from ERCE, which is the the number there in the the box on the top right.

21:20 But the numbers are so big really because of not only because of the column, but also because of the size of the structure. The size of the structure, the inset map there, is about 200 it's actually about 220 square kilometers overall for the maximum closure of the structure. So large area, large columns, and high quality rock inevitably leads to very high volumes. And this is completely in line with the

21:46 large fields that have been discovered in Malaysia. And Malaysia is quite exceptional for this, having these really exceptional columns which lead to these very high numbers. Just before we leave this slide, we always on the title of this slide, we always put Malaysia's largest undrilled structure and question mark. And a few weeks ago, a colleague of mine, Matthew, was presenting, our exploration manager, was presenting this. And as he was presenting this at a conference, this slide, an exploration manager from a large oil company came up to me, they said to me, whispered in my ear, and they said, you know, Pierre, we've we've reviewed all of Malaysia. It's definitely Malaysia's largest structure. So I took some I took some comfort in that.

22:31 We really like this this second slide showing the prospect in slightly different context and showing the size and the extent. I like this slide because it shows the coals, these bright amplitudes where which Nick has helpfully labeled with the white arrows. These bright amplitudes and these these coal beds that are feeding that the gas is migrating up into the high, which is shaded in in red there. And you see the maximum extents of the closure. What's super on this slide is also the gas cloud. You can

23:02 see the the the brights and the the the amplitudes above the red as you're moving up to surface and which shows that we have a seal, and the seal is not necessarily perfect. It it seals and breaches and seals and breaches as it's being filled with gas, And some of the gas is permeating up, and in fact, we have sampled the gas at surface at the seabed surface, thermogenic gas samples at the seabed surface at on the seabed sample from drop cores. So really, lot of source rock feeding this major structure here in deepwater Sarawak. Just before we leave this slide, the number at the bottom is quite important. Again, we never talk about this, but it's actually the p 10 volume.

23:50 So what would happen if the structure was

23:54 the structure was near filter spill? Actually, those numbers, Matthew reminded me this morning, were not actually complete filter spill. It's just using a maximum, a larger column, but actually not the complete filter spill. And you get these super high numbers for the p10 volumes in how we run the probabilistic numbers from low case, mid case, and high case, and those are the high case numbers. Just a few slides on DAREWA just to remind us where we're at. So we signed the PSC, of course, and now we're moving forward. This is with operated by EnQuest and with Petros, the SEASCAPE status partners. And last week, we had our first MCM in KL. I must say, I I have to describe it as a high energy meeting.

24:39 It was really good, very positive, very engaged, Everybody wanted to get after it. Petros, very, very positive, lots of energy, and Quest

24:49 wanted to get after it. So this is to review the fields to get ourselves to an FTP to move forward to development of a number of the fields. As James said, there are 12 fields in the discoveries. There are 12 discoveries in the cluster. I think we see four or five as kind of key fields. Of course, we need to do the subsurface work now, and we're getting after doing that right now. But high grade, you know, four or five, I think two the two in the inset map on the right there, the two I think we high grade are D41 and satellites of D41. And then the key for us is where do the gas where will the gas go, which nearby platform will the gas go, which platform can take it and then it goes into the gas to Bintulu and for export. I think this when we reviewed this for the bid stage, it was really exceptional quality assets.

25:40 We were very surprised by the quality asset, much better than I thought it would be and it's terrific. High columns, high quality rock and good deliverability on tests. The next slide just shows the development scheme and how we would ultimately develop it. The map on the top right shows, and of course this is before where we're embarking on doing all the FTP work now. And of course, things can change and we have to keep an open mind. But these are super low cost developments. You can see the monopod platform there, but super low cost developments and tie back to the existing infrastructure. There are two nearby platforms, but even recently, other platforms have been mentioned as possibly accommodating the gas from the Delaware cluster and where the gas would go. Interestingly on plateau, we see Delaware is having about 100,000,000 standard cubic feet per day, which is very significant coming into the grid. So everybody very keen to get after this. The map here shows the pipelines going from D30 down to Bayan, that's an option. It may be comes from D41 down to Bayan or perhaps even to other platforms. We'll see how that evolves.

26:54 With a fair wind, this sees us getting to first gas in 2027 with FTP through the course of the end to the end of next year. So that's kind of a run through the assets 2A and DEVRA and kind of why we're so energized and positive about them. Fabulous. Thank you very much. So I'm just going to finish this the form of this presentation, and we'll move on to q and a in a second. But I think, you know, we can't emphasize enough how pleased we are with this deal. And, you know, this prospect, it's, you know, it's a it's a it's a one off in a career getting hold of one of these things. So, you know, I think this transaction is incredible for a number of reasons, but just giving us and our shareholders basically a free ride on drilling what will be a very, very closely watched well.

27:54 It's a very high profile prospect. You know, the industry at large is gonna be watching this. And we've got 10% riding on this that we don't have to pay anything for. Obviously, we get cash as well, and we can reinvest that cash into this this these small gas fields and get them on stream. Once they're on stream, that that production level that Pierre was talking about, that that's gonna be around 5,000 barrels a day in oil equivalent terms net to ourselves. So it's a very nice size for us. You know, that kind of production underneath this this company and this portfolio would be phenomenal. So we see a route now from where we sit today to getting there. We have the cash. We've got the assets. We've got the team.

28:41 We've demonstrated our ability to go out and capture these things. We've demonstrated our ability to actually extract value from them even before we turn a drill bit. And that's what being a small E and P is all about. You've got to be quite nimble. You have to react quickly. You've got to seize opportunity. And I think we demonstrate our ability to do that repeatedly. Our stock with the Malaysians is very high. I I tell people they've sort of used us as a test case. It's unusual for a company of our scale to go and and capture assets, particularly like 2A. And, you know, Petronas have taken taken a gamble on us in some ways. You know? They've they've trusted us to go out and find a partner and move this forward, and we've done it.

29:30 So they're extremely pleased. We're extremely pleased. You know, Impex is very pleased. Everyone's a winner. And I think what we would say is that there's a great opportunity here for us to go and do more. We're delivering for our shareholders. We're delivering for the Malaysian state. We're delivering for the Sarawak state, where we have great relationships as well and and now partners, you know, with us in both of these things. And lastly, you know, we are just there's so few of these kind of companies around, you know, particularly in the quoted sector. We're one of just a small handful. And we've got the right portfolio that we're building, and we've got the right team. So I think with that, I'll stop waxing lyrical, and happy to move on to questions.

30:20 Perfect. Thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions. You can do that just by using the Q and A tab, which is situated on the top right hand corner of your screen. But just while the company 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 your investor dashboard. As you can see, we have received a large number of questions throughout today's presentation. And James, if I could just hand back to you just to read out the questions, that'd great, and I'll pick up from you at the end. Very good. Some somebody here is asking about chance of success. How is it calculated? There's four separate chance of success numbers. Do you consider each a stand alone? And if the first drill fails, the other three drop. Pierre, do you want to No, I think what so obviously, chance of success is calculated with looking at reservoir trap and charge primarily and how those are interlinked. And of course, there's linkage between source rock and migration into the different traps.

31:25 So there is linkage between the risk elements. The risk elements are slightly different because each of the reservoir objectives have slightly different characteristics. But overall, we're seeing the pause of the prospect between 2025%. It's interesting during the format process, we had a lot of different comments on the risk and the risk levels and some companies risking it a lot more positively than was done by ERC. But different companies will take different views. But I think it's good to see it as about a, you know, one in four type prospect. Excellent. Thank you. We've got quite a number of questions from one shareholder. But on day work, can we discuss the higher profitability on a per barrel basis relative to 2A? So that's the special terms, Nick, maybe.

32:19 Yes. Good question in terms of what the sort of value is. So PLC has been good at cutting sort of different terms over different periods of time to incentivize investments into different areas across Malaysia. The I guess, terms of the deepwater PSC that we've got, two a, you know, we calculate the economics. Think at the back of this presentation, there's a little bit of a summary in terms of what what the sort of key PSC terms are, but but we calculate the the sort of contractor takes, so us, to be about 30% of the economics versus the SFA terms, which are these new terms put out by in the past couple of years to incentivize smaller businesses to invest into, you know, discovered resources.

33:10 And we see those economics being closer to something like 50% of the economics overall, so the free cash coming out of it. I we've we've done a little bit of of numbers. I don't think we've I'm not sure how how I'm not sure we can sort of share at this stage because, you know, everything is sort of still moving. We we have talked a little bit around how much we think that the development's going to be. We've talked out about the development probably being in the order of magnitude of about $200,000,000 gross. The phasing of that will be sort of quite crucial. And, you know, everyone is aligned in trying to spend the minimum amount of capital, prior to first gas so that that the the cash flow coming out of the asset funds further phases of development. And the idea was really to have a a long plateau, so keep keep the facilities filled up, which is often what you see with the gas development.

34:09 And, you know, I guess in terms of sort of cash flow per BOE, you know, in the sort of gas prices that range that we were talking about, we see it as being probably in the sort of kind of mid teens in terms of dollar per barrels of sort of cash flow coming out once we've got it all sort of developed. But I look. It's a it's a very good question, and I think one of the things we can certainly look to do as the the the development moves forward is to give people a better idea around the economics for for a project like that. I know the Cavendish report was they've had a couple of research reports published recently. I believe they're available on Research Tree for anyone who'd like to have a look. And they also published some numbers that might be useful. Okay.

35:00 Quite a number of people are asking when is Kotang likely to be drilled. I mean, I think I think, you know, what I have said about it, obviously, we're handing the operatorship over to Impex. And so really, you know, it's the operator who who who makes these decisions, you know, for the group. We know that Petronas do have a deepwater program kicking off, I think, the back end of next year. Is that right? Yes. And if we were still operating and there was no impacts weren't involved, Petronas would want us to take a slot within that program, which would mean Curtank probably being drilled in 2026. However, as Nick has shown you, impacts have got quite a number of blocks now in this basin and which they operate. And they will have their own view on drilling programs and rig availability and may well want to, you know, take Kerthang and and put it into a program they've got going on. So at the moment, we don't know quite what the program is for them, but they're very, very keen to get it drilled. So I would rest assured that we wanna get this drilled as soon as possible, and the whole group are aligned in in doing that.

36:18 So I'm afraid we don't know at the moment, but it's all other things being equal, it would be in 2026. But and I would guess probably impacts would be likely on that page, but we'll see. In terms of the deal itself, some are asking, although we want to close in q one, what's the long stop date just in case Long stop date on the transaction is June June 25, so it's halfway through next year. So so we've got plenty of time to get the transaction all completed. It won't surprise anyone to know that that that these sort of transactions get socialized with regulators ahead of announcement. So in terms of sort of making sure that that everybody is is on the same page and and supportive, Pierre absolutely crucial in doing that in his role as, you know, running our our operations out there. So we've had, you know, huge sort of support, thumbs up, and and, you know, as Jim was saying, you know, real support from Peshna. So we really don't see any issue in terms of completion.

37:25 But, you know, it's all around timing, which was really the the the decision to to raise a small amount of money was to make sure that, you know, should there be or if we're getting close to the end of the first quarter, which has always been the time frame we've talked about, you know, starting to run short of money, that there was gonna be no kind of issues. We didn't want it to sort of fall a week later and then have all sorts of chaos. So this seemed to be the most prudent thing to do. The fundraiser's done at a at a teeny tiny discount. I think one of the smallest discounts that's been done, you know, all year. So I it was, I think, a prudent thing to do. Yeah. And a couple of questions on on the gas. So who buys the gas and and people asking about the gas price we expect or how the gas is gas prices is set in Malaysia.

38:12 I mean, in terms of buyers, the buyers for all this gas goes to Bintulu. That's what we expect and what Petros and Petras want. And the bias for Bintulu LNG is principally in East Asia, so it's mainly Japanese and Koreans. And so when you look at which is one of the reasons why IMPEX want this sort of equity upstream position is because the government are buyers of the product. And of course, the Koreans are also present in the basin, not in such a big way, but they are there, and they are a big buyer of the gas as well. So that's where the gas goes. They are the buyers of the gas ultimately. In terms of the reference price for gas, that's the basis of which the gas price will be set.

39:05 We don't know at the moment what that will be. When we get to the day one is going be the first thing, of course, that we'll have discussions around the gas pricing for. But it will be indexed to oil to liquids, right? And we'll expect a factor of that. And typically, they're quite high. It's like 80%, 90% of MRP is historically what we've seen. So this the the gas price is extremely healthy. Yeah. And you have to remember, you know, in an area like this, the the cost, especially someone like something like, the costs are very, very low. I think it's something like a dollar an m or something. So so, you know, your your costs are very low. So anything, you know, 6 is is is a very good price to be getting. You're making, you know, good money at at $6 an m.

39:58 And then question on are we expecting the deals imminently? The fact that we've been buying in the market, you know, does that mean nothing's happening? I would say that that on the announcement of this farm out, of course, we've we've we've cleansed is the word they use, the market for for stuff going on within the company. So you now know as much as, you know, as anyone and everyone. Should you expect more? Yes. You should expect more. We are you know, I don't know. Pierre, do you wanna comment on looking at things, whereabouts we're looking? Well, we well, we look at lot we look at lots of stuff in Malaysia, lots of opportunities, lots we try to look at opportunities that are not just run of the mill. We will, of course, look at the Malaysian bidding round and the discovered resource rounds that that Malaysia would run. But I try to we try to look at opportunities that are that are off piste.

40:57 Discovered resource, of course, what else could we do in the kind of Daiwa space? What other exploration could make sense. And then also production opportunities, looking at how we could build a full scale integrated business, including production and also looking at across the region. And I think, obviously, in Malaysia, but looking across the region at what could be possible across the main countries in the region. I think it's only sensible that we do that. Yeah. Look. And I think that doing this transaction on two a, you know, I think it really puts us on the map. And so I think that we're gonna become a desirable partner. People are gonna want us have us in host governments are gonna wanna have us in because we've demonstrated an ability to deliver to pick up acreage that was, you know, somewhat forgotten, been a little bit overlooked, work it up, present an incredibly strong technical case, get, you know, majors the world over interested in it, get a real competitive process going and and, you know, get things in into to drilling mode. So I think that that's something we bring to the table. I think that that's going be welcomed by lots of people. Just to add to that, Nick, I think in the Malaysia space, sorry, didn't say earlier, but the whole we have a real edge in of in terms of the data. The Malaysians and Petronas have opened up all data, all subsurface data, seismic and wells on a subscription basis to and made it all available. So we can review not only data on our block, but review data across Malaysia

42:28 for discovery resources for all the wells, for the seismic, for even for production data. And that's given us a real edge. So now we are coming up with our own ideas and then approaching PetraNAS and saying, how about this, have you thought of this, Could we do this? And so that so I want to be on the front foot of what we do and not just be reactive in terms of in terms of the the BD flow. Okay. Thank you. Alright. Just time for two more. Someone's asking about is there a drop dead date by which time Kurtang has to be drilled? This is the terms of the PSC. The the so it's a five year PSC, so that's February 28. February 28. Yeah. It will have to be Five year five year unless yeah. Five years. That that's that's the that's as late as it could go. As late as it could go. Yes. They they will have to drill the well. That's part of the PSC terms.

43:18 So, like, contractually, they will be obliged to to to drill that well and, of course, it can if it's commercial. Actually, there was a question on while we're on it, on commerciality and who decides. Yeah. It's the what we've done is the form out has linked the commerciality to the definition in the PSC. I can't sort of really go into it, but there are no firm numbers. It's basically what the collective group decides is commercial. I think the way to look at it is that if the PSC goes out of the expiration phase and into either what's called a gas holding phase or gets extended if if for just to to kinda go straight into a a sort of development phase, then effectively, that means it is commercial and payout would occur.

44:05 So so it's kinda quite in in our to our advantage, actually, it's kinda quite broadly drawn. And I think it's in it's gonna be in everyone's to the extent that there's a discovery there, you know, as the infrastructure has been building out now and there's been a lot of discoveries, you know, just to the south of us, I think there should be a strong push to declare it as commercial. Excellent. Last one is around new institutions on the register. Mean, we're not Yeah. Yeah. I I I don't think we can disclose the the the but I I would sort of keep an eye out when the the shares have a a t plus two settlement on them. I'm sure there will be, you know, some tier ones coming out potentially. So so keep an eye on the on the register on the website. So I'll be doing that. And mister Menzies will be putting one out as well.

44:54 I I mean, I would say part of the objective of replacing, I think we touched on this last time we did one of these, is, you know, one of the challenges we had was a share register, which was Norway centric now being presented with Asia and, you know, we had to rebuild effectively. And this has been an important step in doing that. So we we do have new institutions on who like resource sector, who like these smaller companies and and value the growth. And that that was an objective, and we achieved it. So we now have we now have several institutions on the risk, obviously, in a small way because there's only a very small placing. So we're hopeful that they're going to support in the aftermarket. And, you know, as as participants in this market and investors, you know, should we need them, they're gonna be there for us. And, you know, that's what we need as a quoted company.

45:46 So, yeah, that that was achieved. And as Nick says, look out for tier ones. Okay. I think that's that's it. Maybe we can hand back. Yes. Perfect. Thank you for answering those questions from investors. Of course, the company can review all the questions submitted today, and we will publish the responses out on the investor meet company platform. Just before redirecting investors to provide you with their feedback, which is particularly important to the company, Nick, could I just ask you for a few closing comments? Absolutely. Well, listen. Thank you so much for dialing in today. A huge thank you to James and Pierre. Pierre, who's all the way over from KL to join us, you know, in in basically celebrating what is a real transformational transaction for SEASCAPE, you know, to a delivering everything we said we're going to and more, over the past six months has been absolutely fantastic.

46:39 You know, we appreciate, all of the support we get from shareholders. We're gonna continue to do these these meetings because we think they're a useful way of engagement. Please look at our socials, LinkedIn, you know, our IR email if you have any further questions, and we'll endeavor to get things answered. But thank you so much, and Merry Christmas. Thank you once again for updating investors today. Could I please ask investors not to close the session as you now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations. This will then take a few moments to complete, but some shall 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.