Seascape Energy Asia plc (SEA.L) 2026-10-01 Earnings Call Transcript

Welcome to the Seascape Energy Asia plc Interim Results 2026 Investor Presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged, and they can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. Before we begin, I would like to submit the following poll. I would now like to hand you over to CEO Nick Ingrassia. Good morning.

Good morning, everybody. [Non-English content] to our shareholders in Spain. Thank you very much for joining our webcast this morning about our interim results, which were released yesterday. We have a short presentation we'd like to go through with you and then open up the floor to some Q&A at the end. Before we kick off, though, I do want to say a huge thank you to everyone for your kind messages around James. As many of you are aware, he stepped off of the board yesterday. I and Pierre indeed are in regular contact with him, and we've passed along all these wonderful messages. It is definitely helping him in his recovery, so thank you very much for all of the kind words, and keep them coming. We will be passing them along. For those of you who are new to the story, we like to start off with this initial slide, which just gives a quick recap on what our portfolio looks like. After that, we will go through the portfolio in quite a bit more detail for those who are more familiar. These are our three PSCs here in Malaysia, starting in the west, in Peninsular Malaysia, where we've got the Temaris Cluster. This is our flagship development. We're the 100% owner and operator of this. There is a 250 BCF gas development that is underway, and you're going to be hearing a lot more about that. With huge amount of upside and first gas really only 18 months away from our field development plan, which will be going in at the end of the year, with quite significant production and then a huge amount of upside that can be targeted after that. You'll hear a lot more about how we're building the project for success. Moving eastwards, we've got Block 2A, which is a deepwater Sarawak block. This is the giant Kertang prospect. Very excited that that is going to be drilling in under 12 months now. You're going to hear a lot more about that from Pierre and the progress that's been made by the operator, INPEX. We've got a full uncapped carry on that, so we're all very excited to watch that drill in under 12 months. Then moving shallow water in Sarawak, we've got the Tualang Cluster. This is a non-operated stake in a series of gas developments being operated by EnQuest. Again, significant production, interesting development, and was one of our first assets there. Seascape is a Malaysian E&P pure play. We are listed on the AIM exchange in London. Our market cap is around GBP 70 million. We have got a robust cash position. We will talk about that in a minute. A significant amount of 2C resources, some of which will be converted to reserves as we move through the development process for both Temaris and Tualang, and then a huge amount of prospective resources which Pierre will take you through shortly. Because this is our interims presentation, why do not we just do a quick romp through the numbers? At the end of the day, there is not a huge amount to say as a pre-production business. The thing I think that is important to focus on really is our cash position and how we are spending that. You can see we have continued to keep a very tight control on our costs. Our admin expenses are very low, and indeed, that figure also represents the capitalization of our Temaris project costs. All of the work that is going into that is being capitalized against the project. Indeed, we would expect to receive a significant portion of that back from a farminee when they join the project. Our loss for the period, a little bit below that because of our fantastic team in Kuala Lumpur, who is taking a very active role in managing our cash balances. That has been great. Our cash position as at the balance sheet date was a touch over GBP 7 million. This includes our restricted cash that is placed in bank guarantees for our work programs. Most of that was actually released. About 60% of that was released post-period end. That is in relation to Temaris and all the great work we have been doing on that. You will see an increase in our non-current assets, which really represents the investment that is going into Temaris and Tualang in terms of moving those assets forward towards the development phase. The thing I think I would really take away here is that we have got a really robust cash position that takes us through to the Temaris project FID in Q1 next year and indeed beyond that point, after which we expect to have a farm-in and debt to finance the project going forward. The business will start to look a lot different as we move forward. That robust cash position is in part because of the successful fundraise that we had in Q1 this year. Before we go into detail on the assets, and I hand it over to Pierre, I thought it was also useful to go through just a little bit of the macro. There is a lot going on in the world, and it actually really does impact us and the wider commodity space. As all of you will know that the Middle East conflict really does continue to disrupt global commodity flows. I think that the fact that we have not seen a much larger spike in prices is really down to the fact that there has been a huge drawdown on stocks. We have seen this. I have seen a lot of data around the Chinese who have drawn down on their stocks to maintain prices kind of where they are. I know they are at elevated levels. But the reality is, I believe that they would be much higher had people not been drawing down on those stocks. As part of that, really, this is a global commodity market, but it is becoming more regionalized. Security of supply is really at the forefront of people's minds these days, and that is impacting all of us and how companies are thinking about their investments going forward. We are watching political events really upend those flows. Some of you will have seen announcements by the U.S. looking to potentially stop diesel exports into Europe. These are the sort of things we never would have thought about in the past, but actually it makes people think much more regionally about having that security supply, indigenous investment to ensure that they are not exposed to the whims of politics and things that are happening very, very far away. For us, what this is translating into is a heightened interest in the Asian upstream. These are growing economies. They are very power hungry. As you can see on the chart on the right, in terms of consumption, still there is a massive amount, an absolutely massive amount of energy that is supplied by oil and gas. Well over half of the energy consumption is by oil and gas. Then of course, a huge amount of coal as well, which many of these economies are looking to wean themselves off of. We also see a lack of opportunity here in Northwest Europe. Obviously, Seascape itself is not involved, but being in the London market and being in contact with lots of companies, they are really struggling here in Northwest Europe to expand their businesses, and that is forcing them to look further afield. Still, I think in Asia, there is not a huge amount of competition. It has traditionally been an area that has been dominated by state-owned companies. So there remains a huge opportunity set, and we are really seeing that as that play out real time in terms of our farm-out and all the excitement around it, and the types of companies that are looking at the asset and trying to understand what we are doing. We get lots of inbound, just people asking, "Hey, what is it like out there?" We are very quick to say what a fantastic place Asia, and in particular Malaysia is, for investment. So I think that is enough of an overview, and maybe I can hand over to you, Pierre, to start taking us through the asset update.

That's great. Thank you, Nick, and good morning, everybody. We have a few slides to walk through the portfolio. The first few slides are on Temaris, so of course, the flagship asset. It says here, "Countdown to FDAP," and I must say, it certainly feels like that because everybody in the office working 110% towards FDAP submission. FDAP submission for December this year, and working towards that. Of course, it just doesn't happen cold. Of course, we work with MPM and PETRONAS, the regulator, every step of the way as we work towards that FDAP submission. I guess the other big piece of news yesterday was the active negotiations with PETRONAS regarding the inclusion of additional acreage to Temaris PSC. I think this is really something we've been working on for quite some time. Really for me, it's all about capturing the play, capturing this channelized play. Maybe a year ago or so at one of these presentations, James mentioned that he thought that we were probably one of the real experts in this play in the southern part of the Malay. We've kind of reflected on that and tried to look where else we can capture it and see it. You can see just on this map on the right, so this map on the right is the Temaris PSC, the main rectangle, and the 3D goes beyond the boundaries of that pure rectangle. The bright amplitudes, of course, are this channelized play. You can see the channelized play extending beyond the boundaries of the current PSC. We were very keen to discuss the potential of that play and extending beyond the boundaries of the PSC with PETRONAS, and see what we could do to actually include it within the wider boundary of the PSC. So that's what we've been trying to do and working towards over a few months now, and really pleased to see this moving forward. As we said, we're in active negotiations and commercial agreement by the end of the year, certainly in terms of finalizing the details of that. But really excited of that because of really kind of capturing the play. So those amplitudes you see extending to the north there of the actual Temaris PSC box. But also you see the yellow polygons off to the northeast there, and those are in an area of sparser data. But we're very intrigued by that because of course the Mengkuang discovery, which is a secondary discovery in Temaris, much smaller of course, 29 BCF, and not part of the main development that we're doing right now. But it's tantalizing because it's right on the edge of the data, and potentially extends into that area of kind of white space to the northeast. So we're very interested to kind of look at that and potentially be able to capture that in the wider sense in the one PSC. So it's very important for this to be in the one PSC because then it's easier to work on and work towards ultimately producing all the resource because it's all under one regulatory framework. So that's what we've been trying to do, so very pleased that we've moved forward with this now. The other key thing is we move forward with the whole farm-out process, and I think that's going very well. Very keen to see an awful lot of interest in the process, in the project, and I think the project has really become much more advanced. It's very clear what the resource is, what the upside is. We now have line of sight to this additional area where the gas is going, where the costs are going to be, what the costs are going to be, where the wells are, where the platforms are going to be. There's a lot of clarity behind the project, and Nick will show you that in quite a lot of detail in a few slides' time. The project is becoming much more robust, much more clarity in the project, so there's a lot more interest in the farm-out process, which is very interesting to see.

I think this is the first time we've showed this image, right? Am I right in thinking?

Yeah. Of course, we have wider data sets and wider 3D data sets over the whole of the Malay Basin, and this is one of the 3Ds that we have access to that comes out of the actual box of the Temaris PSC, which is that north-south rectangle on the right. These channel systems extend beyond that box. Really quite keen to kind of capture that and capture the upside that that shows, and really the potential to really increase the resource even more on the Temaris PSC, because it'll all become new Temaris PSC. If you remember when we did the ERCE audit, Nick, last year, and it was just published in January this year, that we showed that there was about 950 BCF of mean prospective resource across the Temaris area on top of the 246 BCF that we're developing at Tembakau itself. A lot of potential within that rectangle of current Temaris. Then, of course, you can see the extensive potential beyond that on the 3D data set that is actually really well-defined. Very exciting, and as a kind of an explorer, very excited to be able to capture that potential in the same play that we know very well, and kind of beyond the boundaries of current Temaris PSC. The other thing that we've done in the past year has really been to focus on data quality. As part of that, there was a 700 sq km reprocessing project that was part of one of our commitments that we did when we signed the PSC, with commitment to PETRONAS to do, and we reprocessed 700 sq km of data. What was very important with that is that the data sets that existed over Tembakau and Temaris, so over two different surveys. Over the reprocessing, we've merged them, used absolutely top-quality technology. Actually, it's called multi-parameter full-waveform inversion, is the technical term. But using lots of AI and using all the data in the seismic that was acquired to actually merge the data sets and improve the data quality. So we have top data quality, and then we have really detailed interpretation that we've done. What that has created, so that 950 BCF of upside mean prospective resource we had across the block doesn't actually count this new prospect that we've been working on over the past few months. We actually presented this at the AGM back in June when we were both in London, and I remember showing this slide, and we were just starting to get the data to get the impression of this prospect maturing. But now it really has. In the middle of map, you see the main faults working north-south, lying north-south, which defines the Tembakau field, which is the closure to the south on the right of the fault. Now we see a kind of a sister structure that's emerged that we're calling Tualang to the north. Sits about 10 km north of Tembakau itself along the fault. When we do the numbers on this, the numbers for Tembakau, the Sproule ERCE audit was 246 BCF 2C, so about 250 BCF mid case. The number is now, when we presented in June, we hadn't done the numbers. Now we've done the numbers on Tualang, and the numbers on Tualang, we have a structure that's about the same size of about the same resource or maybe a little bit bigger, and we get to mean prospective resource numbers of about 275 BCF. So a potential for a Tembakau lookalike sitting about 10 km north of Tembakau, which of course is hugely exciting. The reason why we didn't really see this before is because it was just at the junction point of these two 3D seismics that I mentioned before. The reprocessing has enabled us to upgrade the data set and understand the join better, which is kind of where Tualang sits. Matthew Choo, our head of exploration, had pointed Tualang out to me, I don't know, when he just joined the company. We couldn't quite see it and couldn't quite mature it. Now with this new data, it's really been upgraded. What you can see on the image on the left is Tualang sitting up against a fault with many stacked amplitudes up against a fault. So potential for many stacked reservoirs. Before I come off this, just one point of interest is on the right-hand seismic at Tembakau, there's yellow at the bottom of the well log, and those are sands. These are J sands. We call the different sands by different letters, J and I, but the bottom sands are called J, and these are high-quality sands, but they're not in pay. There's no hydrocarbon pay at Tembakau. We believe that there's potential for those J sands to be in pay at Tualang. So, extensive pay all along the fault at the Tualang prospect, which is why we're getting the volumes that we're getting of about 275 BCF mean prospective resource. So there's a distribution of volumes, and this is just kind of the mid-case volume. Of course, because of where we are, a long strike from Tembakau, with all these amplitudes, with the new data sets, with the evidence of some gas clouds you can see coming up the structure as you come up to seabed on some of the other displays. Because of that, the risk profile of the prospect is of course very low. So, very high probability of success on the prospect.

I guess the people who are not geophysicists on the call, which there's probably many. I'm not one either as well, just to be clear. I guess it's worthwhile to point out that these layers here, so I'm just using this drawing tool, which I've not really used before on Investor Meet Company. This here and this here are really where we have the gas at Tembakau, right? So those are the ones that are lighting up. I guess you can kind of see that with the well log.

Yeah. Actually, Nick, what's really interesting about that is that on the well log on Tembakau, the main pay are in those two rectangle boxes that you drew. However, of the 246, 100 BCF of that, so a big chunk of that, sits in the lower rectangle box, the lower one.

Yeah. Sorry, this one here.

It doesn't look much on seismic. It doesn't look much on this display, but actually 100 BCF is sitting in that rectangle box. If you apply that to Tualang, you can see that there are several of those in Tualang, and they don't appear huge because these are big channel systems that are coming in and out of the plane, big river systems coming in and out of the plane. At any slice, we're just seeing elements of them. But actually the majority of

These are the bits that we're excited about here, is the things that we can see lighting up here, right? Which is up against this fault. It goes here. So it is all that stuff there. So it is that similarity there, and it sort of sits, I guess, here, along this whole fault, right? We have got gas found here, and we have got gas here. I guess it probably tees it up quite nicely into the next slide. It is sort of talking about how we are going about this development. Let us start, I guess, it is a little bit back to front. I guess starting on the right-hand side here. All along, what we have wanted to do with this development is make sure that we are building it for success, so that it can be quickly and cheaply expanded because we have seen so much of that prospectivity around. I guess that has been the mentality since day one, is how the engineering has been going. Just to sort of give people an idea of, I guess, the pre-investment that is going in to allow us to quickly access that significant upside, starting, I guess, on the lower left-hand side of the right-hand box. You have got the two wellhead platforms. These are very cheap, unmanned wellhead platforms, so there is no people on them. The idea is to make them as light as possible so that we can potentially install them with a jackup rig, which will then go ahead and drill the wells. The first thing we decided there was to have some spare well slots. Initially there will be three wells drilled from each platform targeting the reservoirs. What we will have is spare slots that allow us to drill some of that upside that we see in the near-field area, and I think that we have shown on previous slides from previous presentations. I think there is over 100 BCF that sits really just right around there, and that is excluding stuff like Tualang. On the wellhead platform A, you can see there, which will be the more northerly of the two, there is going to be an additional riser. Which basically means that we will be able to put another wellhead platform should we find significant volume. We can put another wellhead platform there that can go straight into A, and then make it into the pipeline route that goes straight up there to the third-party host platform, which we have now identified. I guess the third bit that is, I guess, very important is that we're putting in a pipeline spur, so an ability to enter the pipeline very easily, which is going to be a little bit north there. Obviously we've been talking about the increase in acreage and why we're so excited about it. But what we want to make sure is that anything that does get discovered up there can be easily commercialized. Making sure you have an easy route into the pipeline that you're building, I guess, is very important. What we see there, of course, is that there's a huge amount of prospectivity across a wide range of different types of prospects, different trapping styles. I guess the key is, of course, to first get the base project up and running, which itself is a very robust return. I guess what we can really then do is supercharge the whole development by cheaply accessing these additional resources, and looking to exploit them through that existing infrastructure once it's up and built. I guess we've had that dialogue all along with PETRONAS, and I think that's probably one of the reasons why they've been so excited about what we've been trying to do here, and why they've been so encouraging about us chasing the entirety of the play rather than just getting very solely focused on Tembakau itself. On the left-hand side there, what we've tried to do is illustrate what this can look like. Just to be clear, that pipeline, we've decided to build a 16-inch pipeline up to the third-party host platform. We believe it can carry 250 million scf a day. More than double what the initial rate is going to be going through there, around 100 million scf a day, in barrels of oil equivalent. For those who are interested, that's like 17,000 barrels of oil equivalent. So you can get up to 35+ in a situation where additional volumes are found and put through the whole system. So that's very exciting, and I guess that sort of, again, leads us onto this next slide here, which is talking about really how we have an execution-ready project. That's been the mantra really from day one, is we need to be execution-ready, and that's where all of the investment has been going into. You can see on the left-hand side of this slide, you can see the different work streams that have been going on. A lot of these are not really sort of press releasable, "Hey, look" sort of stuff. So I think that people may have thought we've been very quiet. It's been anything but internally. It's been absolutely crazy in terms of activity levels, getting the project moving along, getting all the engineering done, getting everything ready to go. Trying to, I guess, put this into context. We were awarded Temaris in the summer of 2025, and we're targeting first gas for the second half of 2028. So, basically three years from getting the award to turning on gas is just an incredible feat anywhere. It really, really is. So, full credit to Pierre, to the team, Adam, who's our project manager, who's been doing a great job pulling all these different things together. It's been truly incredible. The size of reprocessing is done. As Pierre was just talking about, is added prospectivity, and it's also helping with the well placements on Tembakau itself. Resource assessment is there. We have to submit that to PETRONAS and ahead of the whole project moving forward. We've been doing the engineering on the wellhead platforms. The FEED, the front-end engineering has been awarded to local businesses who also do some work for some of our peers in the region. The pipeline, we know which way the pipeline's going to go. We've had a great market sounding on that, which is just completed, and that gives us an idea exactly what the costs are going to be. Very, very competitive. We've been very pleased to see. All of that comes together in the commercial overlay, I suppose, in terms of getting engaged with the host platform, knowing exactly where we're going to go into the host platform, what mods need to be done. In fact, we already know that there's a shutdown on that platform at the end of next summer, and we'll be looking to install what we need to then so that there's effectively a seamless offshore execution phase in 2028. Everything going on there and of course, the gas sales negotiation, taking into account all of these other things that are going on is great. This is going to be a very, very quick development. It's going to give us material gas production. I think that the feedback we're getting from the process that has been recently restarted, really has been confirming that for people. Super excited about this execution-ready project, Q4 for our field development plan submission, and then FID in Q1. I guess on to our other project, DEWA. DEWA is, again, remembering that first map, so now we're heading over towards eastern Malaysia. This is in Sarawak. It's shallow water. It's actually a series of fields which are predominantly gas, a little bit more liquids. We have finished the development concept screening and planning. This has been supported by PETRONAS. Recently, EnQuest and some of the materials they've published have confirmed that it will go to the Malaysia LNG plant at Bintulu, one of the largest LNG plants in the world. It's going to go via some Shell-operated facilities at the E8 field, which is, I think it's sort of 20, 30 km down the road. EnQuest remains committed to the project. They just announced a major deal in Malaysia earlier this year with PETRONAS Carigali, the upstream arm of PETRONAS. They're very excited to be growing and growing a material business there, where it's always been, I guess, a slightly smaller cousin to their activities in the North Sea. They're working to make sure that all of these volumes can get into the system capacity no later than 2030. Interestingly, because of the prospectus they put out, they also have put out some figures which are very much aligned with what our independent CPR has confirmed in terms of volumes we see from DEWA and the sort of production levels that we anticipate. Very excited that that's moving forward. It's not our operated project. It is an EnQuest project. But we have been enjoying working with them. There's a lot of things that we've been able to learn from them and apply to our own project. That's been fantastic. I guess, Pierre, a few comments on the big one?

Of course, we all have an awful lot of affection for 2A because it was kind of the foundation of the Seascape business and the pivot to Asia. What's great to see is that we're going to be seeing Kertang in 2A drilled by INPEX in what's in fact less than 12 months, which is just fantastic. A lot of work going on by INPEX in terms of preparing for the drilling, buying and getting equipment in place so that the well can be drilled, preparing a site survey in the first part of next year, and really getting ready to drill the well. You can see some example of the well planning that we put there on the seismic. This is the construction of the well down to the targets at Cycle II and Cycle I. When I think about this, I first started this journey on 2A together with James in 2017. It's quite the journey when we signed it under study program. It's quite the journey to be seeing it now drilled next year on this time, since summer next year on the block, which is great. The number we always say for 2A Kertang is 9 TCF mean prospective resource. Somebody reminded me the other day that there's no reason, actually, they said there's no reason, Pierre, where it couldn't actually be bigger. The P10 volume, so the upside volumes that Sproule ERCE did on this structure is that it could actually be 18 TCF, and that is because the area is so big. The structure is so big. It's 220 sq km. If you put the P10 column, how much gas there would be trapped under those shales, and if it is 900 meters as modeled by Sproule ERCE, the resource auditors, then you inevitably get to huge numbers, and those numbers were kind of 18 TCF mean prospective resource for this structure. I know we always hanker on the 9 TCF, but actually there's no reason it couldn't be much bigger because we just do a distribution of outcomes. It could be smaller, it could be bigger, and the 9 TCF is just the mean case number. It's just interesting that I was reminded by somebody of the upside case, which is true. There's no reason why it couldn't be bigger because we see those kind of columns elsewhere in other structures in Malaysia that are retained by these shales. Very excited. Anything more to say on that, Nick?

Yeah. I guess we had hoped that we would be able to announce a rig by now. The tender is still underway. We are told it is in the very final stages. We have to appreciate that INPEX, the operator, it is a sort of slightly complex process. It is actually a multi-well program that includes Block 2A. They are doing some other drilling in deepwater Sarawak. The fact is that this is moving ahead. They have been purchasing significant amounts of drilling equipment. Obviously no cost to us because we are fully carried. That sort of puts any sort of fears at ease that they may not be moving as quickly as we want them to. They are barreling ahead. Our hope is that we will be able to talk more about the rig when we get to it sort of in hopefully another month or so. Watch this space. We will let you know as soon as we know. The fact remains, and they confirmed to me that drilling is on track for next summer. That is super exciting. Less than 12 months away. Maybe just do a quick summary before we do a little bit of Q&A. Trying to put into context where this business is and where it could be in the future. Just pulled out some of our peers here. A majority are London listed although a couple of others who are sitting in other places who are active in Southeast Asia. The production potential we have from this portfolio depending on how much we keep and how much we farm down is really anywhere between 10,000-20,000 barrels of oil equivalent within 18 months, which is kind of crazy to think about. If you look at that in terms of where our peers sit, that is a significant amount of production. Just trying to sort of map that against where market caps are. It is interesting to see that there is the potential for a big movement upwards in terms of where this business could be in the very near term versus a sort of a peer set which we have always looked at as much bigger than us. I guess is well within our reach and it is going to be an exciting time getting there over the next 18 months or so. Just to kind of summarize then. We have been focused on capturing the entire play. We are in active negotiations with PETRONAS to increase the area. We will be able to give more details around that hopefully soon. That is super exciting and you can see why from the pictures we showed previously in terms of what that is likely to mean for resource increases, that it sits on the route up to our export. We are really in the countdown to the submission of the Field Development Plan, which will allow us to deliver first gas very quickly into a gas-short market, which we will be receiving a great gas price. That is really positive. The farm-out is underway. It was unfortunately put on pause because of the discussions that have been going on with PETRONAS around capturing the play to ensure that we can dovetail those things together and we have an aligned partnership and we can get value for that. There has been a huge amount of interest so far in this project, especially because of its location and indeed because it is an execution-ready project. I cannot stress enough how important that is to people. There is a big difference between what is a discovery and something that is actually moving forward into development and we are really on the cusp there. Of course we have got huge upside potential. The nearest term drilling is Kertang as Pierre was saying, less than 12 months away. Then I guess shortly after that we will be looking to try and test the upside in and around Temaris with a new partner. That is an important part of the story. I guess that probably wraps us up in terms of the set piece on the presentation. Why don't we see if there is some Q&A. Apologies. Usually we kind of are All right. Lots of So there are a couple pre-submitted questions. I will try and do a little bit of a juggle here and paraphrase some of these bits and pieces. Again, some nice comments about James. He is doing really well. Thank you so much. We will definitely pass along all of your thoughts and well wishes. He is still keenly watching the share price. He remains one of our major shareholders and he is hugely supportive and I know he wished to be here, but we are also very glad that he has the space to focus on his recovery. That is great. Let us see. EnQuest recently stated that DEWA was subject to FID. It is dependent on all its availability at the time facility and LNG. Unfortunately, I will not comment. It is their project. This is an EnQuest project. We very much are there supporting them and in support of them. As far as we are aware, they are having very good discussions. It is a complex discussion here between the regulator, the infrastructure owners and everything. They are moving it forward very quickly. It is a high priority project for EnQuest. I know they are keen to move it forward as quickly as they can against the backdrop of some of the system constraints. I guess if it were to slip a little bit, it is not the biggest issue for us. We have got a project in which we are control of, we are the operator of, we have a very high equity interest in. I think that probably allows us to manage our capital a little bit better as well. I think that if it were to slip a little bit, I actually don't think that's the biggest thing in the world. There are questions around the surrounding acreage. I think that that was a pre-submitted question. I think we've addressed that. We can't really say much more. We've shown you some pictures, and we've told you where we stand with those things. Those negotiations are very active, Pierre, I think is the best way to describe them.

Very active.

Very active.

Very active.

That's good news. We're pushing it. Obviously, we want these things to happen as quickly as possible. But ultimately, in terms of value, capturing it is much more important than capturing it quickly. We all like things to happen super quickly, but this is a long-term business. We really are investing for the long term, and you can see from the infrastructure we're trying to build, we're trying to build a long-term project that is going to be very valuable. Let's see. There's a bunch of questions around, I guess this is the project, how it's coming together in terms of some of the commercial arrangements, the capital, and then the debt piece. What I would say is that we will give more detail as we get closer to the field development plan submission, which is going to be in December this year. We'll be sharing more with the market around how much and much more detail around that. Suffice to say that we are currently actively engaged with the market in terms of all these different pieces of kit, getting quotes from these various market sounding exercises that are going on. That allows us to get a good idea of where the project is and where it is going. We'll be able to share with that. It's very much in line with what we've been talking about previously, in terms of the overall CapEx. This is a shallow water development, jackup rigs. The pipeline, we've had some very interesting feedback on that. I'm hoping that we're going to be able to bring this in at a very reasonable price in terms of what we see regional developments. Again, this is an order of magnitude different than the sort of developments that happen here in Northwest Europe. We can't really talk about gas offtake. The gas all gets bought by PETRONAS. It all is going to go through to the Kertih gas system. We're going into a gas-short market. There's quite a bit of availability on how gas gets priced there. Again, something we'll talk about more, as we get closer to the field development plan submission. Work is going on with Macquarie Bank in terms of the financing for it, the debt financing. In fact, we're going to be out seeing a series of other banks there, with some of the key terms and some of the lending levels and stuff. That is also progressing, I guess, in the background. Again, it's hard to talk about these things when they're very live. Suffice to say, we are very focused on financing the overall project, which is going to be really a combination of that farm down, getting some of our historic costs back, and the debt piece as well. If there is a little bit of a shortfall, then it might be that we would look at other sources, indeed, potentially equity. But, as we've gone on and on about many times, we are owners in this business as well. We will only issue equity if we think that it is going to be value accretive to the business. Certainly, we treat our equity as very precious. This is not a business that just goes and issues equity for the heck of it. We only do it with purpose, and in order to fund projects and upside that we see really benefiting shareholders. Pierre, is the Temaris field development and abandonment plan still on track for Q4 2026?

Absolutely. Everybody working towards that for submission mid-December. Interesting, there is a question here also on whether Tualang is part of Temaris FDP, and so that is completely separate. The FDP is just for the Tembakau development, for the 246 BCF, developing that. The rest is upside. What is interesting is that we are getting this kind of additional resource in the PSC coming out with this detailed work we are now doing, and we have prospects like Tualang, which are actually really low-risk prospects emerging across the block, which is great.

Yeah, and I guess that actually feeds quite nicely into another question I see here, Pierre, which is around how should shareholders think about the partner process, which is you are looking for someone who is just interested in the base project or someone who is looking at a broader sort of sense in terms of creating a hub here in the Southern Malay Basin.

Yeah. Well, it is really about having a like-minded partner, who can work on this together and who is really focused on the long-term vision for the block and for the upside in the whole area. And can understand the upside prospectivity on the block and then work together on tapping that and maximizing that potential.

Right. Let's see. I have another one around the timing of the farm-out and the extension of the Temaris acreage. I guess it is suffice to say that we see all this stuff happening together. There is not a chance that we are going to bring someone in and then announce that. It will all be part of the same process, and I am hoping we will be able to talk more about the additional acreage in the coming weeks and months. But certainly anything that we do on it, because it will effectively be one PSC, so it will not be a separate thing. I think, necessarily someone is going to be coming into the whole piece, which will include the enlarged area. I have another question around trying to understand, okay, so field development plans submitted in late Q4, and then when do you expect project sanction? I guess we showed a slide earlier, a couple of ones ago, about the timing on things. I guess FID is expected in, so FID being final investment decision, is expected in Q1 next year. Really what ends up happening is you submit the field development plan that gets accepted by PETRONAS, perhaps with any tweaks or any comments. I do not think we are really expecting many because of the engagement we have had so far. Then it is just about completing things, getting final paperwork sorted, and then lining up all the finance that is already available for when you pull the trigger finally. That gives you that period of time to make sure to dovetail all of these different work streams coming in together. Certainly we would be looking to not only have announced, but also completed the farm down by that point, because at that point we are just going. I think if you have a look at the chart of the timeline, we are showing that even in Q1 we want to be out doing site surveys. There is kit to be ordered. The real spend goes, if we are going to be doing this in 18 months, we have really got to be getting after it. A few questions around, let's see here. Some detailed ones. I will not comment on the Temaris process. It is obviously a confidential process, and we cannot comment on that. I am going to park any of that, but just suffice to say that there is a huge amount of interest in it. Again, I think we have used the time very wisely from when we paused the process previously till now. Really we have been focused on increasing and capturing the entire play, but actually it has also allowed us really to move the project forward to that execution-ready phase so we can see that. Let's see. How much of the E&E additions was capitalized personnel and administrative costs? Yeah, almost all of the stuff that we are spending money on now is really around the engineering and the people costs. It is almost all getting capitalized against the project. Indeed, what we would look for, if you recall, when we farmed down Block 2A, we received a lot of our historic costs back. In fact, all of the historic costs back from INPEX. We'll be looking to do a similar thing here. People appreciate that we've been spending a lot of money. In an order of magnitude, I think by the time we've got the project ready to field development plan, we'll have spent a little bit over GBP 10 million getting the project into an execution-ready phase. That's kind of how serious we are, and again, the way that people address us back because we've done that is really interesting. Let's see. I'm just trying to see. Gas sales negotiations are underway on Temaris. Who is the counterparty? Just to be clear, I think I stated it, but I'll just be very clear that PETRONAS, so the state, buys every single molecule of gas in Malaysia. It is all sold to PETRONAS. We can go through at a later date, we'll sort of explain a little bit more around that. As we're getting closer to the field development plan, I think we'll share with everybody what some of the details are starting to look like, so that you can do an assessment of the project yourself. That's good. Will you retain operatorship post-farm-out on Temaris, Pierre?

Of course, we fought very hard to get operatorship, yes, Nick, and I think we worked really hard for that. I think it's one to keep, and I think PETRONAS really like us being operator and moving forward to the project. I think it's one to keep, isn't it?

Yeah. It's important to us, being able to drive the process in a sort of purpose-fit way, being able to tailor the whole thing, I think is very important. We'll be looking to retain that.

We've got to a stage with PETRONAS that we're actually working really well together, and the work is dovetailing. Everything we do, we work with them and show them and keep them on board with everything we're doing as we get into FDAP. I think they really like this openness, collaborative approach that we have and that we bring maybe something slightly different to some of the other players, which is great.

Yeah, no, absolutely. One of my favorite questions I've seen so far, in capitals, "Can you confirm that INPEX will pay 100% of the 2A costs?" I can confirm that it is a fully uncapped carry, not only for the first well, but also on the contingent well, and there's also a discovery bonus. I can confirm categorically that we have no cost exposure to 2A. That's great. It says if Kertang is a discovery, what's the timescales before first gas?

There's also a question on what is the appraisal strategy, and I think there has. Of course it's such a large area, there has to be an appraisal well. In fact, there probably might be a few appraisal wells. What's really important is, of course, the first appraisal well, as Nick just said, is also carried as part of the INPEX deal. So appraisal well, and then, of course, gas. What's very interesting about the timing of Kertang is there are some other developments in Malaysia, big gas developments that have been delayed for whatever reason, different reasons. The timing of first gas from Kertang getting gas back into Bintulu will be very important for sustaining Bintulu production. We've seen that in the early 2030s and mid 2030s, if the gas were to arrive at Bintulu, that there's a significant demand from the MLNG trains for gas from Kertang at that time.

Yeah, absolutely. There are a lot of questions about how you get Kertang to first gas if it is a success.

Yeah.

I think we have been pretty clear all along that that is a mega project. It really is, and it is unlikely that we would be able to see that all the way through. I can guarantee you there are going to be a lot of buyers for 10% of 9 TCF-18 TCF in Sarawak.

Yeah.

Our path on that one is much more going to be around monetization rather than seeing that through to first gas. We are driven by value, and I think that that would probably be the best and most realistic route to value for a business like ours. But we are also keeping our eye out for other opportunities. Pierre, I know we cannot really say too much, but I guess we are still active on the new venture piece as well. I do not know if you wanted to comment on that.

Yeah. Of course, there is a Malaysian bidding round that is currently active and looking a lot at that and the opportunities available in that, and what could be complementary to our business and be natural bolt-on and add-ons to our business, would be the way I look at it, really. Always looking at innovative ways where we, as a small entrepreneurial team, can really add value. If you look at all the assets where we worked on, whether it is DEWA or Tualang or Temaris, we have really fundamentally added huge value to all those projects through the subsurface. Really focusing on assets that have been overlooked or ignored, and how we can add significant value to that asset and that overall conversation. I think that is the kind of the strategy we have been trying to follow.

Absolutely. Well, I think we're coming up on 51 minutes, so it's probably about as much time as everyone wants to hear from us. Look, thank you. We've got great feedback. We've got a great set of shareholders. The communications and hopefully you've appreciated the communications. I know we've gone through periods of being quiet, but I can guarantee you that it is not because we're not doing anything. It's quite the opposite. We are just working our tails off. There's a huge amount going on. We're delivering a huge amount for what is a relatively small business. We've got a really exciting time ahead, going through the end of the year and then into 2027. Everything is just going to take off. We couldn't be more excited. We really appreciate all the support, and we'll make sure keeping you guys all updated, guys and girls all updated with everything that's going on in the next few months and hopefully go into a little bit more detail where we can.

Nick, the energy in the office upstairs here in Malaysia is palpable with everything we've got going on, which is fantastic.

Fantastic. So thank you very much. [Non-English content], and [Non-English content].

Fantastic.

Thank you very much. Bye-bye.

Thank you very much indeed for updating investors today. Could I please ask investors not to close this session, as you will now be automatically redirected to provide your feedback, which will help the company better understand your views and expectations. On behalf of the management team, we would like to thank you for attending today's presentation.