Seascape Energy Asia (SEA) H1 2024 earnings summary

Executive summary

• Completed strategic pivot to Southeast Asia, exiting Norway, rebranding as Seascape Energy Asia plc, and implementing leadership changes.

• Portfolio rebuilding underway, anchored by Block 2A in Malaysia (52.5% WI) and a pending shallow water Sarawak PSC.

• Significant cost reductions implemented, with G&A down ~40% and a streamlined board and staff structure.

• Cash reserves of £3.2 million as of June 30, 2024, including post-period proceeds from the Norwegian JV sale.

• Positioned as one of the few listed small-cap E&Ps in Southeast Asia, leveraging deep regional expertise.

Financial highlights

• Cash at period end was £1.3 million, with an additional £1.9 million received post-period, totaling £3.2 million.

• Administrative expenses totaled £3.5 million, mainly due to write-offs and increased wages for the Malaysia team.

• Loss from discontinued operations was £9.8 million, with total loss for the period at £12.5 million.

• Other income of £0.7 million, primarily from recharged services to the Norway JV.

• Impairment charge of £6.8 million on LJN investment recognized in discontinued operations.

Outlook and guidance

• Sufficient capital to fund operations through Q1 2025, with additional funding required thereafter; options include asset disposals, farm downs, or new equity.

• Targeting completion of Block 2A farm-out in Q4 2024, aiming to retain at least 15.75% interest.

• Near-term catalysts include imminent Sarawak PSC award and progress on Block 2A farm-out.

• Full impact of cost reductions expected from 2025.

• Directors acknowledge material uncertainty over going concern due to funding needs.