Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.
(Sharecast News) - Seascape Energy Asia said on Monday that its joint venture partners in Deepwater Block 2A, offshore Sarawak, Malaysia, had approved the start of the second exploration phase of the production sharing contract and the drilling of the giant Kertang gas prospect, subject to formal approval from Petronas Malaysia Petroleum Management.
The AIM-traded firm said the decision marked a major step toward testing one of Malaysia's largest undrilled structures, with the joint venture now focusing on securing a drilling rig and confirming the precise location for the first exploration well.
According to a competent persons report by ERCE Sproule, the Kertang structure spans more than 200 square kilometres and holds total unrisked mean prospective resources exceeding nine trillion cubic feet of gas.
Seascape said the well was expected to form part of a wider deepwater exploration drilling campaign across Malaysia in 2026 and 2027, led by operator Inpex Corporation.
The second exploration phase includes a minimum work commitment of one wildcat exploration well and one contingent appraisal well.
Seascape said it retained a 10% carried interest in Block 2A, with all costs for the second phase fully covered by Inpex on an uncapped basis.
"The firm commitment to drilling the world-class Kertang prospect on Block 2A, one of the largest undrilled structures in Malaysia, is an important step not only for Seascape and the Block 2A partners but also for testing the significant potential for giant gas discoveries in the wider North Luconia basin," said chief executive Nick Ingrassia.
"We would like to thank the operator, Inpex Corporation, our joint venture partners Petronas Carigali and Petros, along with Petronas MPM for the excellent work and collaborative approach in reaching this important point in such a short period of time."
Ingrassia said Seascape remained focused on advancing its portfolio into 2026 and beyond, including the recently secured Temaris PSC and other growth opportunities under evaluation.
Block 2A covers about 12,000 square kilometres in water depths ranging from 100 to 1,400 metres and lies within the North Luconia hydrocarbon province.
The Kertang prospect is defined by extensive 3D seismic data and direct hydrocarbon indicators, with the Bintulu LNG complex - one of the world's largest liquefied natural gas facilities - located nearby onshore Sarawak.
At 1514 BST, shares in Seascape Energy Asia were down 1.36% at 86.8p.
Reporting by Josh White for Sharecast.com.
