Seascape Energy Asia PLC on Monday said it has raised £2.0 million from a subscription and placing which will be used to close a $10 million farm-out deal off the coast of Malaysia.

The Southeast Asia-focused exploration & production company said it raised the funds through the placing and subscription of 5.7 million new shares at 35 pence each. It secured net proceeds of £1.8 million, it added.

The company said the funding will be used to ensure the company is able to close a new farm-out deal for Block 2A, located offshore Sarawak in eastern Malaysia.

Seascape said it will farm-out just under a 43% participating interest in the contract to Japanese exploration company Inpex Corp. Seascape will retain a 10% participating interest in the production sharing contract through its wholly owned subsidiary, Topaz Number One Ltd.

The company said it will receive $10 million from the farm-out transaction upon completion. It will receive a further $10 million upon a commercial discovery.

Executive Chair James Menzies said the funding means the company can close the farm-out deal and work on new opportunities ‘without stressing the balance sheet’. The farm-out is expected to be completed at the end of the first quarter 2025.

Menzies said: ‘This fundraising, together with proceeds from the Block 2A farm-out announced today, will put the company in a strong position to deliver near-term growth through our portfolio of assets in Malaysia and across the wider Southeast Asian region.’

Chief Executive Officer Nick Ingrassia said: ‘The commercial terms of the transaction allow Seascape to retain material exposure to the significant upside associated with drilling the 9 [trillion cubic feet] Kertang prospect at nil ongoing cost while also providing capital to be reinvested into the business - including bringing the DEWA cluster through to development.’

Shares in Seascape Energy were up 3.6% to 37.80 pence in London on Monday afternoon.

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