WTI (Nov) $58.90 -$2.61, Brent (Dec) $62.73 -$2.49, Diff -$3.83 +12c
USNG (Nov) $3.11 -16c, UKNG (Nov) 81.65p -1.12p, TTF (Nov) €31.785 -€0.385

Oil price

Oil fell a couple of bucks last week, it just felt worse especially on Fridays fall after the President’s tantrum about rare earths. The Baker Hughes rig count on friday showed another fall, by 2 units overall to 547 and in oil it was down 4 to 418 rigs.

Serica Energy

Serica has announced the signing of an agreement to acquire the entirety of BP’s stake in the P111 and P2544 licences (‘the Proposed Acquisition’), located in the UK Central North Sea. Completion is subject inter alia to the waiver of applicable pre-emption rights.

The Proposed Acquisition comprises a 32% non-operated working interest in the P111 licence, containing the Culzean gas condensate field (‘Culzean’), and P2544, an exploration licence adjacent to the P111 licence. The Culzean field, operated by TotalEnergies, is currently the largest single producing gas field in the UK North Sea. As per the terms of the joint operating agreement between the Culzean field partners, the Proposed Acquisition announced today is subject to a pre-emption period which runs for 30 days, with each of the Culzean field partners (TotalEnergies, 49.99%, and NEO NEXT, 18.01%) having the option to acquire BP’s stake in the licences on the same terms as those agreed by Serica. The Company will update the market further as and when appropriate.

Chris Cox, Serica’s CEO, stated:
“Should this transaction complete, it would deliver a step-change for Serica, adding material production and cash flows from the largest producing gas field in the UK. Culzean is a world-class asset, delivering gas from a modern platform with exceptionally high uptime and low emissions.“

This is a very good deal for Serica and providing it doesn’t get pre-empted by the other JOA partners, which is a risk they had to take, it would fit very well into their portfolio. I see it providing a roughly 50% increase in production, adding some 33mboe of 2P reserves and at a reasonable cost, being accretive on day 1 and paying back in good time. 

With production efficiency of 98% from a top of the range platform, it would also help to provide certainty and consistency in production and cash flows.

Serica will now wait 30 days as a pre-emption decision is made but knowing the management as I do, they wont be standing still, the M&A team will have a number of irons in the fire. With the ability to meld together a fully tax paying acquisition there are a number of possible deals out there so the pre-emption risk is not praying on them too much.

KEY TERMS OF THE PROPOSED ACQUISITION

The Proposed Acquisition has an economic date of 1 September 2025 and an upfront cash consideration of $232 million, subject to customary working capital adjustments and partially offset by the receipt of a payment reflecting interim post-tax cashflows between the economic date of the transaction and the completion date, expected around the end of 2025.

The terms of the Proposed Acquisition also include provision for two further cash payments contingent on: (1) successful results and production from a large exploration opportunity on the P2544 licence; and (2) changes to the UK ring-fence fiscal regime. Further details of the Proposed Acquisition transaction terms will be provided following the expiry of the pre-emption period.

The Company can fund the consideration through a combination of interim cashflows from the Culzean interest and existing financial resources (including cash and undrawn amounts under the existing $525 million Reserve Based Lending facility). The Company is however also considering putting in place a new acquisition facility, which would be refinanced in due course via increased debt facilities to reflect the Company’s larger, more diversified and cash generative asset base inclusive of the Prax and Culzean acquisitions, which the Company estimates would support a larger borrowing base.

ABOUT CULZEAN

• Culzean is a mid-life gas condensate field, operated by TotalEnergies, located in the Central North Sea. It was discovered in 2008, and came onstream in 2019
• It is currently the largest gas field on the UK Continental Shelf by production, with production net to BP of c.25,500 boepd in H1 2025, at an exceptionally high operating efficiency of 98%
• Remaining net 2P reserves estimated at c.33 mmboe, as of 01.01.251
• Upside potential from future infill drilling and licensed exploration
• Production cost of $10.7/boe2, with one of the lowest carbon footprints in the UK North Sea, with emissions significantly below the 20 kg CO2/boe sector average

Angus Energy

Further to the announcement of 21 July 2025, Angus Energy is pleased to confirm that the Company and Trafigura have agreed non-binding terms to restructure its debt subject to final agreement on new covenants, and subject to agreeing revised terms with the Overriding Royalty Interest holders (“ORRI”) and the Deferred Consideration owed to Forum Energy Services Ltd. Full details will be announced in the coming weeks.

The restructuring is expected to provide a stable financial platform to support future operations and deliver long-term shareholder value. By consolidating and refinancing existing debt facilities, the Company will be better positioned to raise new capital in support of organic growth, increased production, and potential M&A activity. The Company is benefitting from higher oil and gas prices and continues to carefully manage its working capital position in conjunction with its lenders.

Potential Acquisition by Reverse Takeover

Further to the announcement of 19 May 2025, the Company is continuing with its due diligence on the purchase of a group of producing assets located in the Gulf of America. The Board is meeting in the coming weeks to agree whether or not to proceed with the transaction. The Company will update the market accordingly.  

Clearly very good news that confirmation of the restructuring, announced in July, has happened and whilst details are yet to be announced the outcome will be welcomed by the company and its investors. 

The company also state that the due diligence continues with regard to the purchase of assets in the Gulf of America and have yet to decide one way or the other. The board will decide ‘in the coming weeks’ and update the market accordingly.

Seascape Energy Asia

Seascape has announced that the joint venture partners in Deepwater Block 2A PSC (the “PSC” or “Block 2A”) located off the coast of Sarawak, offshore Malaysia, have approved entry into the second exploration phase of the PSC and drilling of the giant Kertang prospect, subject to Petronas MPM formal approval.  

Formal commitment allows the joint venture to now focus on securing a suitable drilling rig and identifying the precise drilling location to test the Kertang structure which has over 200 km² of four-way dip closure and total unrisked mean prospective resources in excess of 9 TCF, based on a CPR undertaken by ERCE Sproule.

Seascape anticipates the Kertang well to be part of a wider deepwater exploration drilling campaign across multiple blocks in Malaysia during 2026 and 2027 to be undertaken by Block 2A operator INPEX CORPORATION. Seascape will provide further details regarding the anticipated timing of drilling once available.

The second exploration phase includes a firm, minimum work commitment of one wildcat exploration well and one contingent appraisal well. Seascape, through a wholly owned subsidiary, remains fully carried by INPEX CORPORATION on an uncapped basis through the entire second exploration phase on its retained 10% participating interest, providing shareholders with material exposure to the Kertang prospect at nil cost.

Investor Meet Company

The Company will host an online presentation: A Subsurface ‘Deep Dive’ into Seascape’s Malaysian Portfolio via Investor Meet Company today, 13 Oct 2025, 09:30 BST.

The presentation is open to all existing and potential shareholders and provides investors with further insight into the subsurface aspects of its portfolio following the publication of its Competent Persons Report on 19 August 2025.

Investors can sign up to Investor Meet Company for free and add to meet SEASCAPE ENERGY ASIA PLC via: https://www.investormeetcompany.com/seascape-energy-asia-plc/register-investor

Nick Ingrassia, CEO of Seascape, commented:

“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, off the coast of Sarawak, offshore Malaysia, which has seen some of the highest exploration success rates in Southeast Asia in recent years.

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.

Seascape remains focused on maintaining momentum across its portfolio into 2026 and beyond, exposing shareholders to the significant upside available across its existing portfolio, including the recently secured Temaris PSC, and multiple growth opportunities it is currently pursuing.”

This is obviously good news from Seascape who are on quite a roll, now a firm commitment to get on at Block 2A offshore Sarawak where partners have approved entry into the second phase of drilling subject to Petronas formal approval. 

Seascape anticipates the Kertang well to be part of a wider deepwater exploration drilling campaign across multiple blocks in Malaysia during 2026 and 2027 to be undertaken and carried by Block 2A operator Inpex. 

This morning Seascape hosted a Subsurface ‘Deep Dive’ into their Malaysian Portfolio which was fascinating, the company has clearly already got a great bunch of assets in the region and the management yet again shone, especially the exploration head. 

Just looking at the Kertang upside makes me feel very happy with Seascape, three prospects over a 12,000 sq km block….

The shares have been a fantastic performer, consistently beating my targets, right now the 100p looks in danger of being achieved. But as I have said, I love the management and the portfolio it has already built and I am sure there is more to come. 

Block 2A Highlights

Block 2A is located off the coast of Sarawak, offshore Malaysia in the North Luconia hydrocarbon province covering approximately 12,000 km² in water depths between 100 -1,400 metres. Block 2A contains the world-class Kertang prospect, located across four Oligo-Miocene reservoirs, which is:

• Well-defined, large, four-way dip structural high with over 200 km2 of closure;
• Covered by high-quality, wide-beam 3D seismic shot by CGG in 2015;
• Exhibits direct hydrocarbon indicators (DHIs) including an overlying gas cloud feature and amplitude brights;
• CPR undertaken by Sproule ERCE on Kertang in 2024 assigns total gross, unrisked mean prospective resources of 9.1 TCF plus 146 mmbbl of NGLs (~1.7 billion boe);
• CPR chance of success of ~20%;
• Bintulu LNG, one of the world’s largest LNG facilities, is located onshore Sarawak.

Block 2A was originally awarded to Seascape Energy in February 2023 as part of the Malaysian Bid Round 2022 (MBR 2022) and the other joint venture partes are INPEX Malaysia E&P 2A Limited (operator) Petronas Carigali Sdn. Bhd. and Petroleum Sarawak Exploration & Production Sdn. Bhd.

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

Original article   l   KeyFacts Energy Industry Directory: Malcy's Blog