Seascape Energy Asia (LSE:SEA) shares jumped in Monday’s early deals after announcing a farm-out deal and an equity raise.
The company, formerly known as Longboat Energy, has struck a deal with Japanese E&P firm Inpex which is paying $10 million cash and committed to fund future work at Block 2A, in Malaysia.
Inpex is acquired 42.5% of the project through the deal, and Seascape will retain a 10% stake.
The farm-out means Seascape’s remaining share of the project is ‘carried’ for the project’s current exploration obligations which include the drilling of two new wells.
Seascape will receive another $10 million from Inpex if a discovery is made on the Block.
"The successful farm-out of Block 2A marks an important turning point for Seascape Energy Asia following its strategic pivot in the middle of 2024,” Seascape Energy chief executive Nick Ingrassia said in a statement.
Seascape also today announced a £2 million equity raise, with new shares sold in a placing priced at 35p each.
James Menzies, Seascape executive chair, added: “This funding will ensure that the company is able to close the farm-out deal, work on our DEWA project and continue to work on new opportunities, without stressing the balance sheet.
"This is also an opportunity to bring new institutional investors onto the share register, who appreciate our Southeast Asian strategy and who will be supportive long-term holders.”
Seascape noted that it expects to complete the Inpex transaction at the end of Q1 2025.
In London, Seascape shares were up 5p or 13.7% changing hands at 41.5p in Monday’s early deals.