2nd Dec 2024 12:11
(Alliance News) - Seascape Energy Asia PLC on Monday said it has raised GBP2.0 million from a subscription and placing which will be used to close a USD10 million farm-out deal off the coast of Malaysia.
The Southeast Asia-focused exploration & production company said it raised the funds through the placing and subscription of 5.7 million new shares at 35 pence each. It secured net proceeds of GBP1.8 million, it added.
The company said the funding will be used to ensure the company is able to close a new farm-out deal for Block 2A, located offshore Sarawak in eastern Malaysia.
Seascape said it will farm-out just under a 43% participating interest in the contract to Japanese exploration company Inpex Corp. Seascape will retain a 10% participating interest in the production sharing contract through its wholly owned subsidiary, Topaz Number One Ltd.
The company said it will receive USD10 million from the farm-out transaction upon completion. It will receive a further USD10 million upon a commercial discovery.
Executive Chair James Menzies said the funding means the company can close the farm-out deal and work on new opportunities "without stressing the balance sheet". The farm-out is expected to be completed at the end of the first quarter 2025.
Menzies said: "This fundraising, together with proceeds from the Block 2A farm-out announced today, will put the company in a strong position to deliver near-term growth through our portfolio of assets in Malaysia and across the wider Southeast Asian region."
Chief Executive Officer Nick Ingrassia said: "The commercial terms of the transaction allow Seascape to retain material exposure to the significant upside associated with drilling the 9 [trillion cubic feet] Kertang prospect at nil ongoing cost while also providing capital to be reinvested into the business - including bringing the DEWA cluster through to development."
Shares in Seascape Energy were up 3.6% to 37.80 pence in London on Monday afternoon.
By Michael Hennessey, Alliance News reporter
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