Seascape Energy Asia JV Approves Drilling of Giant Kertang Prospect

Seascape Energy’s JV greenlights Kertang drilling in Malaysia’s Block 2A

Seascape Energy Asia has confirmed that the joint venture partners in Deepwater Block 2A PSC, offshore Sarawak, Malaysia, have approved entry into the second exploration phase and the drilling of the giant Kertang prospect. This is subject to formal approval from PETRONAS Malaysia Petroleum Management (Petronas MPM).

The move lets the partners shift into execution mode – securing a suitable rig and finalising the precise well location over a structure with more than 200 km2 of four-way dip closure. Per the 2024 Competent Persons Report (CPR) by Sproule ERCE, Kertang carries total gross, unrisked mean prospective resources of 9.1 TCF of gas plus 146 mmbbl of NGLs, equivalent to around 1.7 billion boe, with a CPR chance of success of about 20%.

Why this matters for Seascape shareholders

Seascape is fully carried by INPEX CORPORATION on an uncapped basis through the entire second exploration phase on its retained 10% participating interest. In plain English, INPEX is picking up Seascape’s tab for this phase, giving shareholders material exposure to a potential multi-TCF gas target at nil cost to the Company.

The firm work commitment includes one wildcat exploration well and one contingent appraisal well. Seascape anticipates the Kertang well will be part of a wider deepwater exploration drilling campaign across multiple Malaysian blocks during 2026 and 2027 operated by INPEX CORPORATION. Exact timing is not disclosed and will be updated when available.

Kertang’s scale, quality and setting

Kertang is described as a world-class prospect across four Oligo-Miocene reservoirs. The subsurface is well constrained by high-quality, wide-beam 3D seismic shot by CGG in 2015 and shows direct hydrocarbon indicators – including an overlying gas cloud and amplitude brights – that commonly point to the presence of hydrocarbons.

Importantly, the Block 2A acreage sits in the North Luconia hydrocarbon province, a basin the Company notes has seen some of the highest exploration success rates in Southeast Asia in recent years. Onshore Sarawak hosts Bintulu LNG, one of the world’s largest LNG facilities – a relevant downstream anchor if Kertang comes in.

Asset	Key details
Block	Deepwater Block 2A PSC, offshore Sarawak, Malaysia (North Luconia)
Acreage	Approximately 12,000 km2
Water depth	100 – 1,400 m
Prospect	Kertang – large four-way dip closure with over 200 km2 of closure
Resources (CPR 2024)	9.1 TCF gas plus 146 mmbbl NGLs (~1.7 billion boe), unrisked mean, gross
Chance of success	~20% (CPR)
Data quality	2015 wide-beam 3D seismic by CGG; DHIs present (gas cloud, amplitude brights)
Nearby infrastructure	Bintulu LNG onshore Sarawak
Seascape interest	10% – fully carried by INPEX CORPORATION on an uncapped basis through the second exploration phase
Work commitment	One wildcat exploration well and one contingent appraisal well
Timing	Anticipated as part of a 2026-2027 deepwater campaign (exact timing not disclosed)
Approvals	Subject to Petronas MPM formal approval

My take – a high-impact, low-capital exposure for Seascape

This is a classic high-impact catalyst where Seascape’s risk-reward looks attractive. The carry means Seascape is not funding the well, yet it keeps 10% of any upside if Kertang delivers. That is rare and valuable, particularly for an AIM E&P.

On the other hand, the CPR chance of success is around 20%, which is normal for frontier or deepwater wildcats but reminds us outcomes are binary. Even with DHIs and strong 3D seismic, exploration risk is very real. If the well misses, the carry softens the blow financially, but the shares would still react to the result.

Catalysts and risks to watch

• Petronas MPM approval – formal approval is outstanding and required before drilling proceeds.
• Rig selection and well location – contracting a suitable deepwater rig and finalising the drill target will be key milestones.
• Campaign timing – the well is anticipated within a 2026-2027 operator campaign, but exact spud timing is not disclosed.
• Exploration outcome – a discovery would likely trigger the contingent appraisal well and re-rate the asset. A dry hole would reset expectations.

What is not disclosed: drilling cost estimates, exact spud date, and any development concept beyond the second exploration phase. That is reasonable at this stage, but investors should expect further detail as the campaign firms up.

JV line-up and basin context

The partners are INPEX Malaysia E&P 2A Limited (operator), PETRONAS Carigali Sdn. Bhd., and Petroleum Sarawak Exploration & Production Sdn. Bhd. (PETROS). Block 2A was awarded to Seascape in February 2023 under the Malaysian Bid Round 2022.

Management describes Kertang as one of the largest undrilled structures in Malaysia. The CEO also highlights the North Luconia basin’s strong exploration record in recent years. Taken together with nearby Bintulu LNG, the setting is supportive if Kertang proves up.

Investor access – presentation and CPR links

Seascape is hosting an online presentation, “A Subsurface ‘Deep Dive’ into Seascape’s Malaysian Portfolio”, via Investor Meet Company today, 13 Oct 2025 at 09:30 BST. Registration link: Investor Meet Company.

A summary of the CPR published on 27 June 2024 and the update on 19 August 2025 can be found on the Company’s website: https://seascape-energy.com.

Jargon buster – quick definitions

• Wildcat well – the first exploration well drilled on a prospect that has not been proven.
• Four-way dip closure – a trap geometry where rock dips upward in all directions, helping seal hydrocarbons.
• Direct hydrocarbon indicators (DHIs) – seismic features, like gas clouds or amplitude brights, that can suggest hydrocarbons are present.
• CPR – Competent Persons Report, an independent technical assessment of resources.
• PRMS – Petroleum Resources Management System, the standard classification for oil and gas resources.
• NGLs – natural gas liquids such as condensate and LPG components.
• TCF – trillion standard cubic feet of gas.
• Carried interest – another party pays your share of costs during a phase of work.

Bottom line

Approval to drill Kertang moves Seascape into a clear catalyst path. With a 10% uncapped carry through the second exploration phase, investors get meaningful exposure to a 9.1 TCF plus 146 mmbbl NGLs target at nil cost. The risk is still exploration success – at ~20% chance – and timing hinges on Petronas MPM approval and rig scheduling. For those happy with binary exploration outcomes, this is a high-upside swing with limited capital downside for Seascape itself.