WTI (Sep) $63.42 +62c, Brent (Oct) $66.60. +75c, Diff -$3.18 +13c
USNG (Sep) $2.89 -3c, UKNG (Sep) 76.07p -0.43p, TTF (Sep) €31.035 +€0.12

Oil price

Oil is drifting again, with no deal yet regarding Ukraine sanctions are not being enforced, although overnight both sides slightly damaged oilfield facilities. 

Seascape Energy Asia

Seascape has provided the following summary of its Contingent and Prospective Resources from a Competent Person’s Report commissioned from Sproule-ERCE covering the Temaris Cluster (“Temaris”, 100% PI, operated) and the priority fields in the DEWA Complex Cluster (“DEWA”, 28% PI). The Block 2A CPR figures, originally published by Seascape in June 2024, have also been repeated to give an entire corporate figure.

The CPR is an important independent third party verification of Seascape’s resource figures. The report confirms (and in the case of Temaris, upgrades) management’s technical view of resources at the time of license application. Importantly, the CPR highlights new prospective potential in the recently awarded Temaris block.

Seascape has rapidly built a high quality, gas-dominant portfolio using its competitive advantages in Malaysia, illustrating how the Company has created significant value using its key strengths.

Highlights

• Temaris PSC net 2C Contingent Resources of 276 bcf vs 250 bcf estimated at award
• Exploration upside on Temaris PSC of 683 bcf (114 mmboe) mean Prospective Resources located in amplitude-supported prospects analogous to the existing discoveries
• Total net 2C Contingent Resources of 63 mmboe (97% gas), up from nil in past 12 months
• Total unrisked net mean Prospective Resources of 281 mmboe (95% gas), an increase of 69% since completion of the Block 2A farm-down in Q1 2025

Figures may not add up due to rounding. 

Pierre Eliet, Executive Director and Country Chair Malaysia, commented:
“We are very pleased to announce the results of our CPR which provide an independent validation of our significant resource base. The report confirms our view of the high-quality nature of Seascape’s Malaysian portfolio, giving investors exposure to both hard value and significant exploration upside.

In addition to the substantial Tembakau discovery, the report highlights the large, low-risk exploration potential of the Mid-Miocene ‘channel’ play present across the Temaris block. Prospects on the block, such as Allamanda and Keladi, have the potential to transform Temaris into a new ‘gas hub’ in Peninsular Malaysia to satisfy growing energy demands.

Seascape’s momentum will continue into the second half of 2025 as we move Temaris forward and begin the search for a long-term partner on the block. Additionally, we also anticipate a firm well decision on Block 2A while also actively seeking growth opportunities in Malaysia and across the Southeast Asian region.”

Yet again Seascape has pleased the market and it’s not hard to see why, today’s news that an updated CPR has come out with some modest upgrades and others more revealing that add to the company’s high quality Malaysian portfolio. 

The key to the release is around the new prospects on Temaris, amplitude-driven analogues to the discoveries whilst Allamander is particularly eye-catching and shows why there was hot competition for the block. These numbers, in an independent CPR ‘provide an independent validation of the significant resource base that the management has already built up in very little time’.

This is a very good third party validation of Seascape’s in-house numbers and the inclusion of an upgrade on Tembakau is a bonus  but it confirms the house view of the high-quality nature of Seascape’s Malaysian portfolio, giving investors exposure to both hard value and significant exploration upside.

Readers know how much I like Seascape and Chairman James Menzies was very confident this morning about its prospects. The company are working on a ‘deep-dive’ on the assets which they plan to put out next month to hopefully coincide with Inpex confirming Kertang drilling and in which the whole team will give talks on the portfolio. 

The shares have performed very well indeed, today they are nearly at my original target of 75p which itself would be a ten-bagger and as everything is going to plan I think its time to up the target. The Shares have doubled since June and are up 250% on a year so ahead of the deep-dive I am putting it up to 100p which is very achievable. 

Temaris Cluster (100% PI, operated)

Seascape was awarded a 100% participating interest and operatorship in Temaris in the current Malaysia Bid Round 2025. The acreage includes two gas discoveries in shallow water (~70 metres) offshore Peninsular Malaysia on the western flank of the Malay basin and covers an area of around 1,200 km2.

The main discovery, Tembakau, was originally made in 2012 and appraised in 2014 and benefits from an extensive dataset including full 3D seismic coverage, well logs, DSTs and extensive well core. Tembakau is located near to infrastructure with the closest producing gas field ~50 km away from the field.

The Tembakau field comprises Early-Mid Miocene channel sandstone reservoirs which are clearly imaged on 3D seismic and exhibit a strong amplitude response. The field has excellent reservoir properties with porosities of 20% to 35% and permeabilities of over one Darcy and contains dry gas with very low levels of impurities. The Tembakau-2 well was tested and produced from the I-10 and I-20 reservoirs, with both reservoirs flowing at gas rates of 16 mmscfd, constrained by the well test equipment used.

The smaller Mengkuang discovery is located 30 km to the northeast of Tembakau in high-quality mid-Miocene sandstones and also demonstrates strong seismic amplitude response. The field is split into several lobes and benefits from a good dataset but was not tested at the time of discovery.

The total, net 2C Contingent Resources assigned to Temaris by Sproule-ERCE of 276 bcf is 10% higher than the 250 bcf estimated by Seascape at the time of award.

In addition to the existing Tembakau and Mengkuang discoveries, significant exploration upside exists in the stacked channel sandstones reservoirs which continue across the Temaris PSC. As part of the CPR, Sproule-ERCE has also provided Prospective Resource estimates of the four main prospects on the block which are located close to the Tembakau discovery.

All prospects exhibit the seismic amplitude characteristics seen at Tembakau and Mengkuang, with the largest prospect, Allamanda, exhibiting a particularly robust and extensive amplitude anomaly.

Together these prospects total 683 bcf (114 mmboe) which is approximately two-and-a-half times the size of the existing discoveries on the block and if proven could be quickly and easily monetised with the newly planned infrastructure from the Tembakau development.

All of the Temaris PSC prospects are anticipated to be further derisked following the 3D seismic reprocessing currently underway on the Temaris block.

DEWA Complex (SEA, 28% PI)

Seascape was awarded the DEWA Complex Cluster (“DEWA”) with 28% participating interest, under the Malaysia Bid Round Plus in October 2024 comprised of 12 gas discoveries in shallow water (40-50 metres) located off the coast of Sarawak, Malaysia.

Six fields (D30, Danau, D41, D41W, Dafnah West, Dana) have been prioritised for the initial phases of development (“DEWA Priority”) and are broadly characterised as having stacked, clastic reservoirs with large gas columns and good hydrocarbon mobilities. The fields benefit from a significant dataset including 35 well penetrations, well logs, multiple DSTs and MDTs and extensive 3D seismic coverage.

The Sproule-ERCE CPR has focused on the Contingent Resources associated with the initial DEWA Priority fields.

The Sproule-ERCE review also identified additional upside in-and-around the DEWA Complex for future pursuit. This includes an additional 7 bcf of unrisked net mean Prospective Resources (25 bcf gross) in an undrilled fault block on Dafnah West.

Block 2A (Company, 10% PI)

Block 2A is located offshore Sarawak, Malaysia in the North Luconia hydrocarbon province covering approximately 12,000 km2 in water depths between 100-1,400m.

The main prospect on Block 2A is Kertang which is a well-defined, large, four-way dip closed structural high with over 200 km2 of closure with four target intervals comprising of Cycle I and Cycle II/III Oligo-Miocene reservoirs and shallower Cycle V/VII reservoirs. The prospect exhibits direct hydrocarbon indicators (DHIs) including an overlying gas cloud feature and amplitude brights at the Cycle V/VII level.

The CPR figures, originally published by Seascape on 27 June 2024, have been repeated below for reference and updated for the Company’s new net equity position of 10% following the successful farm-out to INPEX CORPORATION (“INPEX”) in December last year.

Seascape remains fully carried by INPEX on an uncapped basis through the remaining exploration phase which includes one firm wildcat well and one contingent appraisal well (subject to a commercial discovery).

Buccaneer Energy

Buccaneer has announced a successful fundraise supported by institutional investors, Directors and Management, existing shareholders and new investors.

The Company has raised £600,000 (before expenses), c.US$800,000, through a subscription and placing of 4,000,000,000 new ordinary shares at a price of 0.015p per share.

Use of Proceeds

The proceeds of the fundraising will be used to fund the Company’s share of the drilling of two development locations in the Fouke area.  The Company’s working interest is 32.5%, with well plans for September and December 2025. The Fouke area is an isolated fault block in the southwestern section of the Pine Mills field that was discovered in 2021 at original reservoir conditions.  Wells in this area produced water free at the field allowable rate of 124 barrels of oil per day.  It is anticipated that the next two development locations will produce at similar rates.

Gas Monetisation Strategy

The associated gas produced in the Fouke area has been increasing over time and with volumes provided by the two additional development wells the Company has been evaluating potential local solutions for reducing gas flaring and monetising the produced gas.

As part of its evaluation of the monetisation of gas production, Buccaneer has been considering options for utilising the gas for powering bitcoin mining which has become increasingly common in the onshore Texas basins since 2022. To aid with this evaluation and future implementation the Company is pleased to announce the appointment of Appold, an award-winning independent blockchain and digital asset advisory firm, as the Company’s strategic advisor regarding a potential future Bitcoin strategy (https://www.appold.com/).

Appold will act as advisor on the implementation of governance, custody, trading, and risk management frameworks as the Company seeks to evaluate partnering with a Bitcoin Mining operator in order to generate a potential return from its associated gas production.

The implementation of a successful strategy to monetise this gas is subject to a number of further steps including the drilling result from the new development wells. This includes entering into an agreement with a bitcoin miner on suitable terms and further assessment of potential sites for a future operation.

While some initial discussions with Bitcoin Mining operators have taken place, there can be no certainty that the Company will successfully partner with a Bitcoin Mining operator to generate a return from its gas production, the timeframe of such a partnership or the eventual return from such a partnership.

Corporate update

Buccaneer is pleased to announce the appointment of OAK Securities, a trading name of Merlin Partners LLP, as Joint Corporate Broker alongside the Company’s existing broker SP Angel.

Paul Welch, Buccaneer Energy’s Chief Executive Officer, said:
“I am pleased to announce that we have completed a £600,000 fundraise for the progression of our major operational program at the Fouke Area in East Texas. We have identified two additional development locations that are within the same reservoir section as the successful Fouke 1 and 2 wells.  New interpretation of the 3D seismic, combined with the existing well performance, has demonstrated that the reservoir section continues to the North of the existing wells and has yet to be drained by the existing wells. This section of the reservoir has been producing at high rates over the last several years with increasing amounts of associated gas. This gas has restricted production in Fouke 2 and delayed the drilling of the remaining development wells. The gas volumes, however, were determined to be too small to develop a dedicated offtake pipeline but are sufficient to dedicate to a power project that can use the gas offtake to mine for Bitcoin, which is a preferred option to flaring the gas. This allows us to accelerate the development of these locations. 

In closing, I would like to thank our new and existing shareholders for their support with this Fundraise. We have ambitious plans for this business, both organic and inorganic, and we look forward to sharing further updates with all our stakeholders in due course.”

You know, I like what Paul Welch is doing with the dogs dinner he inherited in Texas and with this raise he looks to have found a loyal following who have now backed him with this raise. £600,000 is no mean feat and I understand that despite regulatory intervention nearly managed more.

The money will be spent on the programme at the Fouke Area in East Texas where the company has identified two additional development locations that show similar properties to the Fouke 1 and 2 wells such as being in the same reservoir section which continues to the north of the existing wells and has yet to be drained by the existing wells. 

Much has been made of the bitcoin experience here, suggested as the gas volumes are too small for a pipeline, down to costs, but not too small to dedicate to a power project for a bitcoin mine and it avoids flaring and thus wasting gas. 

With bitcoin mining becoming increasingly common in onshore Texas basins to aid with this evaluation and future implementation the Company has announced the appointment of Appold, an award-winning independent blockchain and digital asset advisory firm, as the Company’s strategic advisor regarding a potential future Bitcoin strategy.

If the UK listing authorities can be persuaded to acknowledge such a momentous event as the invention of bitcoin and its need for gas then one day Buccaneer will be able to capitalise on its stranded gas. Certainly worth having on the radar screen as Paul Welch plans to build Buccaneer into something bigger and better, and soon. 

Southern Energy Corp

Southern has announced its second quarter financial and operating results for the three and six months ended June 30, 2025. Selected financial and operational information is outlined below and should be read in conjunction with the Company’s unaudited consolidated financial statements and related management’s discussion and analysis (the “MD&A”) for the three and six months ended June 30, 2025, which are available on the Company’s website at www.southernenergycorp.com and have been filed under the Company’s profile on SEDAR+ at www.sedarplus.ca. 

All figures referred to in this news release are denominated in U.S. dollars, unless otherwise noted.

SECOND QUARTER 2025 HIGHLIGHTS

• Petroleum and natural gas sales of $4.0 million during Q2 2025, an increase of 3% from the same period in 2024, largely due to the 61% increase in Q2 2025 natural gas pricing over Q2 2024
• Average production of 11,2951 Mcfe/d (1,883 boe/d) (96% natural gas) during Q2 2025, a decrease of 27% from the same period in 2024
• In June 2025, Southern successfully completed the second of its four high quality drilled uncompleted horizontal wells (“DUCs”) from the Q1 2023 drilling program – the GH Lower Selma Chalk (“LSC”) 13-13 #2 wellbore. The operation was completed safely and under budget
• Average realized natural gas and oil prices for Q2 2025 of $3.63/Mcf and $62.60/bbl, compared to $2.26/Mcf and $80.06/bbl in Q2 2024. Southern achieved an average premium of $0.19/Mcf (approximately 6%) above the NYMEX HH benchmark in Q2 2025
• Generated $0.6 million of Adjusted Funds Flow from Operations2 in Q2 2025 ($0.00 per share basic and diluted)
• Net loss of $0.4 million ($0.00 per share basic and diluted) in Q2 2025, compared to a net loss of $2.6 million in Q2 2024
• On April 8, 2025, Southern closed an equity financing raising aggregate gross proceeds of $5.0 million (approximately £3.9 million, C$7.2 million) through the issuance of a total of 102,482,673 new units (see “Shareholders’ Equity – Share Capital” in the June 30, 2025 MD&A for full details)
• On April 8, 2025, Southern converted the remaining convertible debentures in the amount of $3.1 million into 62,759,286 new units and issued 1,627,170 new units for all accrued and unpaid interest (see “Liquidity and Capital Resources – Debenture Financing” in the June 30, 2025 MD&A for full details of the conversion)

1 Comprised of 23 bbl/d light and medium crude oil, 43 bbl/d of condensate, 5 bbl/d NGLs and 10,869 Mcf/d conventional natural gas

Ian Atkinson, President and Chief Executive Officer of Southern, commented:
“Southern continued to build momentum through the second quarter of 2025, supported by firming natural gas prices and the successful completion in late June of the GH LSC 13-13 #2 well in our Gwinville field, marking a key milestone in the redevelopment of our LSC inventory. Early flowback results are highly encouraging and we are particularly pleased to have completed this well at 10% below our original budget, accelerating expected payouts and reinforcing the economic viability of our broader development program.

Following our $5.0 million financing in April, Southern resumed field operations with a focus on efficiency and value creation. The GH LSC 13-13 #2 well has already begun contributing significant new volumes with minimal incremental operating cost and benefited from an approximate 17% premium to Henry Hub pricing due to rising Southeast U.S. power demand during the start of summer. This premium underscores the strategic advantage of our geographic positioning and the strengthening macro backdrop.

Looking ahead, we expect these new volumes to materially enhance our Q3 2025 cash flow profile. With a constructive outlook for natural gas pricing into the back half of 2025 and into 2026, combined with two additional high-quality DUCs, a deep inventory of drilling opportunities and ongoing capital discipline, Southern is well-positioned to deliver meaningful shareholder value through the remainder of the year and beyond.”

Southern is doing well to be bringing on new volumes at ‘minimal incremental operating costs’ and getting a 17% premium to Henry Hub as power demand increases in early summer. With a raise earlier in the year and a ‘deep inventory of drilling opportunities’ Southern is poised to take advantage of a better gas market. 

Financial Highlights

Operations Update

In June 2025, Southern successfully completed the first of its three remaining DUC horizontal wells from the Q1 2023 drilling program, and its first LSC lateral – the GH LSC 13-13 #2 wellbore. Over the first 30 days of production the well averaged natural gas rates of 3.6 MMcfe/d (99% gas), which is an increase of over 100% compared to the average of the original LSC horizontal wells in Gwinville that were drilled and completed by the previous operators. The well has been flowing directly to Company facilities with all gas sold since June 26, 2025. 

Southern safely and efficiently completed the horizontal lateral with 25 fracture stages, placing over 5.3 million lbs of proppant – a 70% increase in proppant intensity compared to the first-generation completions. The Company implemented targeted stimulation design changes that improved the predictability and speed of the fracture operations, and most importantly, reduced the overall completion cost to $2.2 million which is over 10% below pre-job estimates. Additionally, water flowback rates from the LSC reservoir have been over 70% less than Southern’s Upper Selma Chalk horizontal wells, which translates into significant initial operating cost savings of ~ $0.20/Mcfe, further improving capital returns.

Southern will continue to monitor both regional natural gas pricing and well performance from the GH LSC 13-13 #2 over the upcoming months before making a decision on the completion timing of the remaining two DUC wells. 

Southern continues to work with Federal Energy Regulatory Commission (“FERC”) staff to resolve the ongoing transportation dispute that resulted in the shut-in of approximately 400 boe/d of production from the Mechanicsburg and Greens Creek fields. Based on prescribed FERC resolution timelines, the Company expects the rate determination process to be resolved sometime in Q3 2025, at which point these production volumes will come back on-line. 

Outlook

Southern has taken meaningful steps to strengthen its financial position in 2025, including the successful $5.0 million equity financing in April 2025, conversion of convertible debentures, and restructuring of financial covenants with lender support. These actions, combined with the early success of the GH LSC 13-13 #2 well and two additional DUCs in Gwinville, provide a clear runway for disciplined growth.

The Company also continues to benefit from a fixed-price swap of 5,000 MMBtu/d at $3.40/MMBtu through December 2026, offering downside protection. With improved regional pricing and a strengthened financial foundation, Southern is well-positioned to execute its capital program and generate long-term shareholder value.

Southern will continue to monitor NYMEX prices and the basis differential prices and is prepared to hedge additional volumes in a tactical manner going forward.

We appreciate the continued support of our stakeholders and look forward to providing further updates on our operational progress as we work to drive long-term shareholder value.