Seascape Energy Asia Share Discussion Threads

[katsy] 02/12/2024 13:09

back down to the placing price. looks like the market already priced in this deal, or thinks little of it.

[pol123] 02/12/2024 11:29

Most areas have been covered already, just want to add my support to SEA investors and BOD.
Excellent farm out. Great to see the BOD buying in to a minimal raise. Also raise done at the right time IMO to avoid any last minute hiccups.
Looks like we have a knowledgable poster (sircadian)on LSE from a geo perspective, worth a read

[darcon] 02/12/2024 10:54

In my view the deal is an excellent one. There remains enormous transformative upside. Trading a portion of that prospective upside so that SEA succeed in building a balanced E&P business with a range of near-term and longer-term opportunities some of which will generate cash in a shorter time-frame is a wise and prudent move.

The £2m placing gives SEA the cash to work on more value accretive deals in SE Asia. The deals done in SE Asia thus far demonstrate that their team can acquire high quality prospective acreage at low-cost and farm it out retaining valuable upside. Two farm-outs now to two high quality E&P companies within a year is great.

My guess is that SEA will have deals lined up to deploy part of the £10.5m effectively as soon as that money lands upon completion of the Block 2A farm-out. SEA don't control the regulatory authorities in Malaysia/Sarawak. The delay in the anticipated DEWA farm-out announcement by intra-government negotiations slowing regulatory consents showed that delays can happen even if the government is in favour of a deal. So it's very sensible of SEA to raise some cash now to fund their burn-rate while they wait for the farm-out cash to further build their business with more value accretive moves to come.

[ohisay] 02/12/2024 09:13

Pretty smart move of Inpex to give Petros a free carry for its 7.5%.

Cavendish again...
A highly credible partner: Inpex is the largest oil and gas company in Japan, with global exploration,development and production in 20 countries. In 2023, Inpex produced an average of 630kboepd and had 2P reserves of 6.2bn boe.
Inpex has an established presence in Malaysia, with interests in three
PSCs offshore Sarawak, offering the potential for operational synergies with Block 2A.

[devonlad] 02/12/2024 09:12

Agree nigel, far better for the long term to have the cash, keeps them nice and secure iunto the medium term now, this company isn't going bust and removes a large amount of uncertainty around the business. My hunch is that they have gone for the extra cash because they have more opportunities that will provide additional value add for investors, the presentation is going to be very interesting indeed.

[nigelpm] 02/12/2024 08:45

A lot of upside has been sacrificed for safety which is sensible but I think the deal is probably in line with expectations rather than being superb.

[nigelpm] 02/12/2024 08:41

They need the placing because they were going run out of cash. Simple as that.

[katsy] 02/12/2024 08:19

I guess this is why they needed the placing.

The Transaction is subject to partner and regulatory approvals and anticipated to complete at the end of Q1 2025.

Anyway could you imagine if that placing was done at 6p back in June.

Anyway at current share price the market cap. is £25.44m
-with £10m of that in cash.
-13-17mmboe in dewa
-10% in block 2A

[devonlad] 02/12/2024 08:13

Very sensible way to do business. Gut feeling is that something else will be shortly on the table, probably find out a bit more on the third!

[arcteryx] 02/12/2024 08:06

Will be interesting to see whether those bigger players that took part in the placing, or other IIs, will be now looking to increase their holdings or get onboard following this news that brings more certainty

[ohisay] 02/12/2024 07:55

Cavendish this morning ..

Seascape has successfully farmed out a 42.5% participating interest in Block 2A to Inpex, in a deal worth up to cUS$38m (c1.4x Seascape’s market cap). The farmout not only secures Seascape’s future, but also creates a platform for future growth, allowing Seascape to retain material exposure to the significant upside associated with drilling the 9Tcf Kertang prospect at nil cost.

We increase our target price to 85.0p, c2.3x the current share price.

[pranchalee] 02/12/2024 07:46

Must have read that rns wrong

[goblin99] 02/12/2024 07:45

A very impressive result with the farm out. This allows them to continue with the DEWA cluster whilst waiting for the potential of Kertang at zero cost.

[pol123] 02/12/2024 07:37

Boom times ahead....management have played a blinder. No need for me to repeat all the other good posts.
Exciting...........

[zengas] 02/12/2024 07:31

It’s a very good deal even at 10% on 2A.

The $10m cash payment on completion is worth 12p/ share and today’s small fundraising at 35p really leaves the company in a strong position.

A commercial discovery would lead to a similar 12p share payment.

Upside here on 2A still around 500p share using Cavendish’s $2/b with double that if it goes to production. Good to be carried for the appraisal well. Just need an indication of drilling in the next 12 months or so hopefully.

Company now cash rich and DEWA with its resources to be re rated to reserves on a development sanction.

MBR release of projects in the next 8-10 weeks.

[ohisay] 02/12/2024 07:29

SEASCAPE ENERGY ASIA PLC will be holding a Investor Presentation meeting on 3rd Dec 2024 at 10:00am GMT.

Compulsory viewing !

[arcteryx] 02/12/2024 07:28

Well done Seascape! Exciting times ahead. Cash now to fund DEWA to production, as well as a free carry on the Kertang drill, which if successful will send the company valuation to the moon. Small placing seems justifiable to remove uncertainty as to regulatory sign off of Block2A.

Big difference between Longboat and Seascape seems to be that Seascape are actually doing what they say they are going to do, and much more quickly!

[upwego] 02/12/2024 07:20

Great News

Kertang to be frilled with still great exposure and no cost to us, little placing at a very good price and enough cash now to go after that cluster.

They only left Norway a matter of months ago and already have farmed out the huge block and have multiple discoveries to go after.

Fair play to the management here, hands on and getting on with the job..

I like it! :)

[pranchalee] 02/12/2024 07:13

Now we see why cavendish report wasn’t as buoyant

[nigelpm] 02/12/2024 07:10

Put a lid on upside but protected the downside nicely. Clearly they were about to run out of cash. That risk has now gone.

[devonlad] 29/11/2024 15:14

Nice Katsy, isn't that most shares. Hopefully cleared out the seller now anyway, looking forwards to the farmout.

[katsy] 29/11/2024 13:19

This share reminds me of a cartoon meme I once saw. Where one trader is talking to another and says, this stock will excel, another trader hears cel as sell, then everybody is sell, sell, sell, sell, in the carnage one trader says I'm outta hear good bye. One here's the bye as buy, then it's buy buy buy.

[chutes01] 29/11/2024 12:56

News sooooon, enq

[pranchalee] 29/11/2024 12:55

Who dares wins👍