Seascape Energy Asia plc (SEA) Earnings Call Transcript & Summary

Good morning, and welcome to the Seascape Energy Asia plc Investor Presentation. [Operator Instructions] The company may not be in a position to answer every question received during the meeting itself. However, the company can review all the questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to the Executive Chairman, James Menzies. Good morning to you, sir.

Thank you very much, and good morning, everybody. Welcome to our Q1 investor update. We thought it's worthwhile just giving you a little bit of a reminder of what we're about and what's going on, particularly in light of our closing our farm-out deal with INPEX, which we announced yesterday, which we're extremely pleased about. So with that, let me remind you of the highlights. In terms of the Board, obviously, most of you will be familiar with myself and Nick and also Pierre, who is often on these calls with us. We have made a couple of changes to the Board recently. So Pierre has come up and joined the main Board as a full-on exec member. And we've also added an additional non-exec in Haida, who is someone that Nick and I have known for many, many years. She's a Malaysian national, extremely a well-known figure in business circles, I'd say, in KL. She's ex-PETRONAS, but has worked with many, many companies and continues to work with a lot of companies in the region in the energy space. She's very enthusiastic, a lot of energy. She's very much a Seascape sort of person, and we think she's a great addition. So we're really pleased to have her join us. Of course, we have Graham and Geraldine still with us who, I'm sure, some of you will know. In terms of Seascape itself, I mean, I think we've got a small portfolio, but we are quite a rare thing. We are a way of playing Southeast Asia in a pure listed form. And there really is just very, very few companies out there that are a pure play on the Southeast Asian economy and macro that actually can demonstrate a track record of having got stuff done. So our small portfolio as it stands today has got hard value in terms of discovered gas resources and it has exploration spice and sort of blue sky excitement in terms of 2A, which is fantastic for us because now we have a carry on that. We're not having to look to fund any of that blue sky excitement. So it's a really good move for a company of our scale to get after. I think we can also demonstrate that we have a competitive edge. For a small company in any geography in this sector, it's extremely difficult to gain an edge that few others, if any others, have. And I think what we've been able to demonstrate is for a small company to get things done. The number of times we were asked how we ended up with 2A, how did we get into DEWA, what are we looking at, why you, and it's -- they're good questions, but they're really a testament to the fact that we get out there. And as you'll see, we walk -- we're around this region. We're all over everything. We know lots of people. We have the relationships established. And arguably, we have extremely good credentials, particularly in Malaysia, where we've demonstrated ability to pick up acreage, to farm down acreage, to bring in partners. We've got a great relationship with PETRONAS that goes back a long, long, long way. And that's not something you can replicate very easily. It takes a lot of time and effort. I think we don't want to be necessarily limited just to Malaysia. We do look around the region, as you're going to hear. And I think the other point I'd say is that we have an ambition to create a full cycle E&P. We want to do it in a portfolio that has coherence to it, that kind of makes sense. We don't want to be wasting our equity capital, but we want to use our relationships and do it in a way that is cost effective, but to build a portfolio that has all the requisite elements within it. And that's our challenge, is how do we get there. But we've made an excellent start. We're very pleased with that. And Nick and myself will take you through the highlights of both that transaction with INPEX, but also the rest of the portfolio.

Right. Good morning, everyone. Thank you for joining us. As James said, I wanted to give you a little bit of an update following the announcement yesterday. We've been seeing some investors recently, have had some great feedback. So it's important to us to engage also with our wider shareholder base. So you'll be getting a presentation that some institutions have gotten recently as well. So as you will have seen yesterday, we completed the Block 2A farm-out. We've always said that we were going to do this during the first quarter. So we delivered it on schedule. I had hoped that we were going to be a little bit earlier in the first quarter, but what we've described it as is a highly structured transaction due to sort of some of the nuances of it. But that really -- what that means is that we're not paying any tax on that consideration because it was a corporate sale, so we get tax relief. So indeed, the entire consideration of $10 million plus our back cost of around $1 million will be received by the business with no tax payable. This is going to put us in a very strong financial position post completion. We're currently forecasting we'll have around GBP 10 million in cash at the end of this quarter. Obviously, we have no debt. And we're continuing to strive to keep our corporate overheads at an absolute minimum. However, as we're going to explain to you today, we see a huge amount of opportunity. So having too small a team not being able to chase these great opportunities that we're seeing is not a position we want to be in. So therefore, we've got a team and an entity and we're sort of positioned for growth. And so that leaves our corporate overheads sort of a little bit over the absolute bare minimum of just like kind of a do-nothing case. But really, for us, this is because we see some great investment opportunities. As James mentioned, we've added 2 Board members in the first quarter. Pierre has done an absolutely fantastic job. He's based in KL, and he's done a great job both in getting the farm-out over the line, but also some of our growth ambitions, including DEWA and other things we're actively looking at. And we'll come on to this a little bit more, but there's a bunch of growth opportunities that we're seeing both on a sort of ground floor basis, so getting involved in some licensing rounds, as well as potential acquisitions. And to us, that's where Haida joining the Board has been a huge benefit as well, expanding our network, expanding our experience across the region and she's a really welcome addition as well.

Very good. Well, let's kick off with the DEWA. So by way of reminder, this is a block that is in shallow water offshore Sarawak. We picked it up quite recently together with EnQuest, and we have Petros, who's the Sarawak state company alongside us as a partner. We have 28% of this block. It contains 12 gas discoveries and fields, so a number of structures. And in terms of resource, we're seeing -- we're quoting 300 to 400 Bcf recoverable. It's got a huge database. It's 35 wells, lots of 3D. We've got all the logs, all the test data, everything comes with it. And I must admit, when we first looked at this -- and at the moment, we're going through the refining of the resource numbers. So together with EnQuest, our partner, that work is ongoing as we speak. So we'll hopefully update you when we have a refined view of that. But of the 12, they're not all going to be stunning. And in fact, an early look does reveal a couple of these structures probably aren't worth pursuing immediately at any rate. So there's definitely been -- some have been put on the back burner. But I'm also pleased to say some of them actually look a lot more interesting than we originally thought. And so there's definitely a sweet spot emerging within the acreage and it's around that D41, D41 West and DANA area in the center of the acreage there. Those structures look particularly good as does Dafnah West to the south and D30 down out to the north. So those features are definitely highly rated and we suspect that they'll be the place where we'll start first. So look out for an upgraded resource assessment to come out of this acreage. As I say, the data set is very fulsome. These features, you can see them very clearly on seismic. They light up in terms of amplitudes. So in terms of technical risk, this is quite low. We've got a lot of information about these reservoirs. So that's -- it's almost like being awarded -- or making a series of gas discoveries yourself, but we don't have to go through the pain of doing that. This is awarded to us by the state. On the next slide, you can see the other great feature of these licenses, and they're called DROs, it's a direct resource opportunity, direct award, is that the terms have been sweetened. So we're getting much better commercial terms than you would normally get for a PSC in Malaysia, where roughly 50% of the economic rent is coming to us, the contractor. Typically, we would see circa 30% from Malaysian PSC. So PETRONAS are really trying to encourage us to get out and get on with this quickly. They realize that most of the companies who are active in Malaysia, this is not on their radar screen because it's too small for them. So they need to incentivize the smaller players and the midsized players, like ourselves and EnQuest, to take these opportunities and really push them and run with them very hard. Given that it's in shallow water in a very busy address in terms of the basin, there's lots of infrastructure around here. So we've got a couple of tie-in options where we can get into pipelines. The gas will go back to shore, back to Bintulu LNG, which you may be familiar with from seeing our previous presentations. And you can see one tie-in point here is 43 kilometers away, another one is 24 kilometers away. So when it comes to -- we'll look at the [indiscernible] available in those evacuation routes which makes the most sense to go, we think we'll get something like 100 million SCF a day gross from the production in this block. And the gas pricing here is pretty good. It's related to what we call MRP, the Malaysian Reference Price, which has typically been between $6 and $12 an MMBtu. That's the sort of trading range it moves within. And it's low cost. It's shallow water. We're looking at very simple unmanned platforms. I was very pleased to receive a brochure from PETRONAS advertising secondhand equipment. They had to decommission a lot of platforms and they recognize that there's no reason why people like us couldn't use secondhand kit here, and why not reuse something rather than go and fabricate new platforms there when you don't have to. So that sort of thing is fantastic and keeps the CapEx low, OpEx low. So we're going to see some great returns from this. And we would expect production probably to start up in 2027. So that's going to be a big year. And if we don't do anything else, this would be Seascape's maiden production. And net to us, this is roughly 5,000 barrels a day in terms of the volume. So a really exciting asset for us. It's a good size. I think our interest is about right. And it's a high-quality asset, good quality gas, a great market. It's simple. It's the sort of stuff we really love. A quick reminder on 2A. This has been our flagship project. We have been known in Malaysia as the company that had the 2A block. And it caused a bit of a stir, I'd say. I think this farm-out has caused a stir in the industry because it's a good deal, everyone's happy. The INPEX, the Japanese are delighted to get hold of this. It's got a lot of exploration potential around this. It's not just Kertang. There is around Kertang. There's Kertang lookalikes, smaller in size than Kertang itself. And there's shallow potential. So for them, they've got a lot of ambition to get a big upstream position here, the Japanese being huge buyers of LNG out of Bintulu. So they're pleased to get it and to have the operatorship. We, of course, are delighted because we have a 10% carry. We have cash in the bank. So it's worked very, very well for us and our shareholders. And we have really just been the conduit for this activity. We can reinvest that capital back into Malaysia to go and develop shallow water gas. So the state of Malaysia and Sarawak are also pleased to see this happen. So everyone is smiling as a result of this transaction. And of course, we would like to see this well drilled. It's going to be a very, very highly watched well in Malaysia and the region. So there's going to be a lot of attention on it. But having been the flagship project for us, we are becoming a passenger. This is going to be INPEX's project. We have an uncapped carry. So we're not sensitive particularly to the cost of drilling a well. And so one thing, when we talk about what next for Seascape, I think having the flagship asset is going to be important for us. I'm a firm believer that companies like ours need -- you need to plant your flag in the ground and have everyone look at a project, look at an asset and associate you with that. And that is -- that becomes your -- part of your identity. So we're definitely looking for something like that. But this has been brilliant for us and we talked about it a lot, but we're very delighted. And Nick can tell you about the terms of the deal.

Yes. Just to go through, just as a reminder, as to the sort of transaction we did with INPEX. For those who don't know them, INPEX is Japan's largest E&P company. It's actually owned about 20% by the Japanese government. So this in many ways is a sort of agent of Japan Inc. It's got around sort of 630,000 barrels a day of production, which is around 10% of Japan's annual primary energy consumption. So it's quite big. And they're also sort of very much a regional player in these LNG projects, so it's another reason that we like them. In addition to the transaction, they have the wherewithal to move a project like this forward [ if ] there's a deepwater well or 2. And so we feel very comfortable on their capabilities to move the whole project forward. So just as a recap on the transaction itself, we will retain a 10% carried interest. It's a full uncapped carry on 2 wells. So that's an exploration well and a contingent appraisal well. And when we say uncapped, it means that they will keep spending and we will not have to spend a penny, not sort of from now until hopefully discovery and appraisal. So that's fantastic. So we end up being -- complete all the upside and we don't have to worry about any drilling problems. If they want to test, if they want to do whatever, that's absolutely fantastic. We're highly encouraging them to do so. So that gives investors real exposure to this upside without the fear of dilution. We also received $10 million upfront in cash and we're going to also receive, assuming a discovery, a contingent cash consideration of $10 million. The trigger for that really is moving the PSC out of the exploration phase and into either what's called a gas-holding phase or effectively moving it through to development. So there's no kind of volume trigger or anything. It's just whether or not this proceeds. As James mentioned -- sorry, we also had $1 million of back costs. And actually to try and help contextualize that, with sort of all this money we spent capturing and working up the acreage, even on just a sort of cash-on-cash basis, we've had a [ 10x ]return on this, which is absolutely superb. And a huge credit to the team and all the work that's gone in historically to capture that, work it up and on a really competitive process, which had a huge amount of interest from a very wide range of very large companies. As James mentioned, the operatorship has transferred to INPEX and they are hard at work already. In fact, there was a joint venture meeting last week in Kuala Lumpur, and they are targeting a firm well commitment for the summer of '25. Once that commitment is done, then they'll be looking for a rig and we'll have a better view on what timing is. The most important thing for me, though, through this whole process has been developing a great working relationship with INPEX. We really value them, their capabilities, how they've come into Malaysia and built a big exploration portfolio. And we definitely see scope to collaborate with them in the future, and we think the feeling is very much neutral in what we brought to the [ part ]. The real question is what does this mean for value for us? And what we've tried to do here is just give a bit of a back-of-the-envelope calculation on that. I know some of you will have access to research, some of you won't. But just sort of in terms of sort of putting a bit of a figure in there, we can sort of see what the cash value is in the business as at the end of the first quarter. We also have a sort of an implied farm-out value. So taking what we received for our stake and then implying that on that 10%, so what is the value of the carry on that and the contingent consideration. And in fact, we put that calculation in the appendix to this presentation, which will be going on to our website after this. But therefore, you can kind of get a sense for what that value is. And actually, if you add in that contingent payment that's in the blue there, you get to 61p a share versus around sort of 35p, 37p where we've been trading recently. So actually, just in that farm-out alone, the business seems very undervalued, you start adding in the resources that we've got. DEWA, what we've done there is we've used a big purchase made by Total last year of 2 different entities, but were actually sort of a joint venture between Sapura, a local business; and OMV, a European business, which had a very large gas-weighted portfolio in Sarawak. So completely analogous here. They paid about $4 a barrel of oil equivalent. That was some production, but a lot of resource to be developed going into Bintulu. So these are all export volumes. And so we're paying about $4 a barrel. If you transpose that on to our stake in DEWA, on an unrisked basis, you see a hard value of about GBP 1.40 a share. Of course, you start adding in Kertang on an unrisked basis and effectively sky is the limit. GBP 10 is a far cry from the 35p, 40p a share we've been trading at. So we're really excited to try and work to unlock that value for shareholders. And the research believes that as well. So we've got sort of price targets from our 2 brokers, Stifel and Cavendish, well in excess of 100% upside from where we sit today. So look, we think that there's a huge amount undervalued in the shares, and we'll be working to unlock that as we move forward.

Yes. So I'd like to say a few words about what we're doing elsewhere in the region. And if any of you follow us on social media, please, I would urge you to do so. But you will know that the team have been running around recently. We've been effectively, for want of a better phrase, we've been marketing ourselves on the back of our 2-way deal to other governments and regulators and industry bodies in Thailand, in Brunei, Cambodia, Indonesia. So we already have quite well-established links in all these places, but it doesn't hurt to go and visit in Vietnam and other ones to visit and remind people what we've been doing for the Malaysians and maybe we can help them. And it has yielded a lot of interest from people. So it's been a big talking point in the region. So we're just trying to really capitalize on that and make sure that it's understood and people understand the strengths that we have and what we can bring to the table. And Nick, I don't know maybe you want to give some of the highlights.

Yes. I mean, surely, indeed, we've been prolific posters on social media a little bit, just to sort of give an idea of us running around and been in the region a couple of times already this year. Personally, James was out recently. Obviously, we've got here and there all the time. But look, what we're seeing is quite a bit of elevated activity. This is, I think, realistically, what this is, is around sort of transition stuff sort of taking a little bit more of a backseat in the current political environment. We see majors starting to get worried about the decline of shale coming in the next 5 years. And so a term which I've used, the re-internationalization of majors. And what we see there is that the regional governments are trying to capitalize on this desire to put investment into hydrocarbons. And so we see a lot of people scouring and looking for opportunities. Of course, we're there. We're at the forefront of all this, and we're really leveraging our network to try and see what we can get in ahead of the crowd. The Malaysian Bid Round 2025 was launched recently in February. James was there at the launch. And that includes sort of some exciting DROs like we have with DEWA as well as some exploration acreage, both sort of frontier stuff and kind of near existing infrastructure. Thailand we've seen launch an onshore round, but also we believe they'll be launching another offshore round. Murphy's made a big discovery in Brunei. So there's lots of stuff going on. I think the key for us is trying to find, as James says, a flagship opportunity in order to really sort of plant our flag in the ground and use that in much the same way we've used DEWA and 2A to push forward the value in the business and sort of get in early and look to use that as a way of monetizing and funding work programs going forward. There's no sense of picking this stuff up if we can't finance it, and we're really committed to trying to get in early and use that as an asset to finance the business going forward, so minimizing any dilution. We are very leveraged to the share price. Management owns 6% of the business. And we are aligned very much with our shareholders and wanting to create value per share. So therefore, it's sort of about minimizing the amount of shares we issue.

Yes. I mean, I think just on that map, obviously, we feel we have probably more of an edge in Malaysia than anywhere else, it's fair to say. So people often ask us, well, what's your #1 target, and obviously we're limited by what we can say about business development generally. But I think we're always -- one thing to say is we're always open to opportunistic events. Things can fall in your lap suddenly out of the blue when you don't expect it or events occur that you feel you should react to because something is just too good an opportunity to miss. And it does happen. So we're always alert for that. And I think keeping some powder dry and making sure we're not stretched too thin, that we can't bite something like that off or have the network to bring in resources to kind of deal with something like that is something as a little company you've got to be able to do. But other than that, I think Malaysia is obviously up there as somewhere where we're putting a lot of effort. But equally, I think Vietnam has got something, it seems to be waking up a bit. It's got some interesting things. Thailand, as Nick was saying, the onshore perhaps maybe not, but the offshore definitely there are some interesting bits there. Can we find another 2A?

You never know.

Never say never, but they are sort of once in a decade, I don't know, maybe lightning can strike twice, we'll see. But I'm very wary about believing our own whatever. But yes, it's going to be difficult to find another one in short order. But anyway, there is quite a long list of stuff to chase and we definitely have our favorites, so we have a top 3 and a top 1 or 2 that we are very, very hot on. So yes, we're running very hard. So just to talk about the rest of it, as I've mentioned earlier, we would like a full cycle portfolio. If we have to wait for DEWA to deliver that production, then we'll wait for that because we can do it. So that's there as a backstop. If all else fails or if we can't find the way to get cash flow into the portfolio in a value-accretive sensible manner, then we will do DEWA and that will be our main production. And that's okay, we're very happy to do that. So we'll continue to look for those opportunities. We really don't see many others. There are -- we do have competitors out there, but not many of them are listed. Not many of them are really technically led. I would say I think a few of them have cash on the balance sheet as we have and a few of them have the relationships and network that we enjoy. So we do have very, very strong advantages over pretty much most, if not all of our competition, I would say. And the assets we hold we know are really high quality. And that is another big differentiator is there is -- it's easy to get your hands on lower-quality assets. We don't want to compromise on that given what we have right now and the things that we've got in the crosshairs, there's no point in downgrading what we have. So we see no need for that. And we have the skills to be able to pull it off and we've already demonstrated that. So just the upcoming things, Nick?

Yes. I mean, look, one thing we're very conscious of is that momentum is key for these small businesses and we are very focused on maintaining that momentum. We had great momentum out of last year coming into this year and we really are running at some very interesting stuff at the moment. Obviously, we've completed 2A. Keep an eye out for the well commitment. As I said, we expect that to be this summer. DEWA resource assessment, we'll be looking to, hopefully, at some point, publish a CPR once a lot of that underlying work has been done by EnQuest alongside ourselves, [ topping ] on the subsurface and we are actively looking to build out the portfolio. So keep an eye up. And I guess maybe with that, we'll stop and answer a few questions.

[Operator Instructions] Just while Nick and James take a few moments to read the questions that have been submitted today, I'd like to remind you the recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via Investor dashboard. As you can see, we have received a number of questions throughout today's presentation. At this point, I'll just hand back to you to read out the questions, and I'll pick up from you at the end.

Okay. Perfect. Give me a minute, just a quick scroll through all the questions, exactly. Okay. There are a couple of questions here around what the impact of the rumored -- well, I guess it's not rumored anymore, the merger between EnQuest and Serica. So a few people worry that, that's going to have a negative impact on sort of -- on DEWA slowing down. I mean, I will say, again, speaking very personally, the North Sea at the moment is all around financial engineering and cutting costs out of the business. So it's kind of a race to the bottom, as you were, in terms of how you combine businesses and how you create value. It's not about finding or developing new resources. It's about how you financially engineer these things. And what we've seen from EnQuest actually is quite the opposite. We've seen them actively buying things. They recently bought an asset in Vietnam from Harbour. Obviously, they came into DEWA. They announced a gas sort of development at their existing asset called Seligi in Peninsula Malaysia. So actually, I see quite the opposite. I see them looking to Southeast Asia as a real growth engine. And everything that we've seen from them in a recent joint venture meeting on DEWA has been quite the opposite. I mean, they are running sort of full pelt at it. So I don't think it has really any impact. And in reverse, it may actually have a hugely positive impact as they use Southeast Asia as a little bit of an engine for growth. What proportion of costs are being reimbursed to Seascape as part of the deal? I assume this is in relation to 2A, basically almost all of them. Almost all of them. So we spent very little in the deal capture there. We had to work it up. So actually, we're getting almost all of our back cost back. And I think in the presentation we ran through there, it's about $1 million. There we go, another couple of EnQuest-Serica ones. Okay, re DEWA, has there been any flow test done? And can you give us some input into stable production expectations from DEWA?

Yes. Extensive test data is available. So yes, most of these wells have been tested. And I think we have given, not in this presentation, but we have on our website the presentations with test -- with flow rates already there. I mean, we've seen gas flow up to 20 million SCF a day, I think, on the best-looking test. But it's important to understand that, that area is surrounded by some oil production in D35. And the previous operator of the block was a consortium that was really looking for oil. So most of the tests that were performed were on oil zones within these wells. So you see oil and gas in most of these wells, but they didn't -- they ignored the gas completely. So effectively, these gas accumulations are virgin. They haven't really been produced. The prior operator did produce something like 1 million to 2 million barrels of oil. I mean, very small amount of oil that came out of this before they focused efforts on the surrounding acreage where they've been very successful in terms of oil production. And that's why this gassy area was left behind. So yes, there is extensive test data. They haven't really made it on the gas, although some of it was flow tested, but it's largely untouched. But we know the reservoirs are great quality. If you look at the deliverabilities, they look very, very good. The mobilities look excellent. These are well-known classic reservoirs in this area. We're not going to see any surprises. So as I mentioned earlier, the technical risks are very, very, very little, very few.

Great. And another question here about the resource assessment on DEWA. Is there any opportunity to accelerate that? Look, there could well be an opportunity to accelerate those. When we talk about the resource assessment, that's part of the package that needs to be delivered to PETRONAS as part of the conditions of having the license. But certainly, there's a bigger sort of acceleration on those key priority fields that James was talking about earlier. So there may be an opportunity for us to sort of have a view, put that out more publicly on those sort of fields as opposed to the whole thing. But these things do need to be choreographed together. So we are [ hamstrung ] a little bit by our requirements on the license and everything. But we try to give our views on it as we go and we'll continue to be open and communicative where we can on those. But the resource is quite significant and possibly even bigger than what we've seen originally.

I think one other point to mention that we've seen some undrilled fault blocks in DEWA as well, which is effectively step-out exploration, but they were never really considered when we applied for the acreage, but it's become apparent there are some step-out exploration opportunities where we'd expect to find gas in high-quality reservoirs.

There's a question on cost to bring DEWA on stream in terms of what is going to be the cost. I think we've given a little bit of guidance in there. We say sort of $5 to $7 a BOE. We've given sort of the range we think the recoverables are. I think the crucial piece of that question is the phasing and how that phasing will sort of ultimately be done. So do you do it all at once? Do you sort of phase it over a period of time? Therefore, kind of where is your sort of low point. And our hope, we're working together very actively with EnQuest and they're very aligned with us on this, is ensuring that the phasing means that you're kind of producing at the earliest possible stage and then using the funds from the production to sort of help with the -- help finance the further phases of development so that it's not sort of -- you don't want to spend everything all at once and turn it on, but you're spending in a way that keeps a plateau, keeps cash flow coming in and so your minimum never gets too low. We have already started to investigate financing. There's a lot of interesting options out there at the moment. We see banks coming in. There are bonds, there's possibly [indiscernible], there's traders who are financing the stuff. We're still at the very, very early stages of that. But certainly, we'll be looking to put a significant amount of debt finance on this opportunity rather than looking at equity. Again, just want to stress that, for us, it's all about creating value per share. That's how we are incentivized and we're aligned with our shareholders in that sense. When do you anticipate the exploration well to be drilled on 2A? I think all along -- I mean, part of the problem is that the INPEX is now taking over as operators. So we've got to hear what they've got to say.

Yes. Yes. They have -- I mean, they have other blocks, other drilling commitments in the region. So they'll put a program together. We would -- I think if you think about the back end of '26 or maybe early '27, it's going to be something -- I would guess it will be something like that. But once the commitment is made, then hopefully the timing window will firm up. But if you hold that in your head, you're probably not going to be too far off.

They want to know how close we are to maybe landing a deal? Obviously, we can't talk about that. Look, we are working very hard on a few fronts. The target is really to materially expand the portfolio this year.

Yes.

I think it's probably all we can say. So we're not going to -- we're not keeping our feet up in any sense. We are already pushing on a few things in particular. I think James said we had a couple of things that are already high graded. So just let's keep an eye on it. Shares are undervalued. Does it mean you won't raise equity at current levels to finance deals?

No.

So obviously, with the benefit of this cash coming in means that we've got enough money to chase, especially DEWA-esque type opportunities without having to go to the market. We've seen that create a huge amount of value. Certainly, we're very, very focused on value per share. So raising money to buy production that is going to be -- that's not value accretive just not of interest, which is why we're pursuing other stuff at the moment. Oil prices coming off a little bit, maybe that opens up some opportunity, but we're certainly not going to force anything. As James said, we have a great portfolio that can deliver organically. What do you expect the company's cash burn to be during '25? I think we answered that previously. The G&A is running around about GBP 3 million a year. Do we see any effect diluted -- I think we answered -- thanks, [ Malachi ]. I think we answered the one on the EnQuest-Serica question. I think that's probably just about it. Let me see if there's anything else, we take one more. No, actually, I think we've hit most of them.

There we go.

So I think that's all for today. Thank you very much to everyone for joining, participating. Keep an eye on us. We'll keep doing these. We've committed to doing these as often as required. It is a great way for us to communicate with all of our shareholders, but we've also got the stuff on social and watch the space.

Yes. Very good. Thank you very much, everyone.

Nick, James, thank you very much for updating investors today. Could I please ask investors not to close the session as you'll now be automatically redirected to provide your feedback in order the management team can better understand your views and expectations. This will only take a few moments to complete, which I'm sure will be greatly valued by the company. On behalf of the management team of Seascape Energy Asia plc, we'd like to thank you for attending today's presentation, and good morning to you all.