Seascape Energy Asia (SEA) H1 2024 earnings summary

Executive summary

• Completed strategic pivot to Southeast Asia, exiting Norway through the sale of the Norwegian entity to JAPEX, rebranding as Seascape Energy Asia, and refocusing on E&P opportunities in the region under new leadership.

• Sale of 50.1% interest in Longboat JAPEX Norge AS to JAPEX for £1.9m, with JAPEX assuming £13m of debt.

• Entry into Malaysia with operatorship of Block 2A, now holding 52.5% after Topaz acquisition, and a pending shallow water PSC with multiple gas fields.

• Significant cost reductions implemented, with G&A down 40% and a leaner board and staff structure, targeting ~$2m annual savings from 2025.

• 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 receivable post-period from the LJN sale, totaling just over £3 million.

• Total loss for the period: £12.5m (2023: £6.2m), with £2.7m from continuing and £9.8m from discontinued operations; impairment charge of £6.8m on LJN investment.

• Administrative costs rose to £3.5m (2023: £2.0m), mainly due to new venture costs and increased wages for Malaysia team.

• Minimal income from recharge services to the Norwegian JV; admin expenses increased due to write-offs from a failed venture and the Norwegian JV.

• G&A reduced by approximately 40% year-over-year, with full effects expected in 2025.

Outlook and guidance

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

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

• Directors believe funding can be accessed but acknowledge material uncertainty over going concern.

• Actively pursuing further opportunities across Southeast Asia, including production, development, and exploration assets.