Seascape Energy Asia (AIM:SEA) told investors it has received a Letter of Agreement from PETRONAS, via Malaysia Petroleum Management, granting a large areal extension to the north and east of its Temaris Cluster Small Field Asset production sharing contract, in which the London-listed oil and gas explorer holds a 100% interest.
The Southeast Asia-focused upstream company said the Temaris Area Extension adds 547 square kilometres to the licence, taking the total PSC area to approximately 1,770 square kilometres, a 45% increase on the original acreage awarded in June 2025.
Seascape has commissioned Sproule ERCE to update the original competent person's report, which had identified 950 billion cubic feet of gross mean Prospective Resources across the Temaris PSC, with the updated figure due in the fourth quarter and the potential, the company said, to double the roughly 1 trillion cubic feet of net mean Prospective Resources currently identified on the licence.
"This acreage expansion enhances the value of our Temaris asset, capturing more of the play and adding breadth and depth to our prospect inventory," said Pierre Eliet, Malaysia Country Chair and Executive Director.
The Temaris Cluster centres on the Tembakau and Mengkuang gas discoveries in shallow water off Peninsular Malaysia, where Seascape has completed FEED contracts and is targeting first gas in 2028 from two unmanned wellhead platforms tied back to existing infrastructure.
PETRONAS intends to make new 3D seismic data over the extension area available to Seascape as part of a regional acquisition programme in late 2026, which the company said should help de-risk a possible extension of the Mengkuang discovery, currently carrying 2C Contingent Resources of 29 billion cubic feet based on legacy 2D data.
The additional work commitment covers processing of the new 3D seismic and a contingent exploration well, with the firm financial commitment to be met from existing cash resources; Seascape reported unaudited cash of £8.5 million as of early May, following a £5 million placing and retail offer completed in the first quarter.
The extension remains subject to execution of final documentation.
Seascape has also restarted the process, previously paused, to bring a strategic partner into the Temaris PSC, saying it now has the benefit of enlarged prospectivity, a maturing Field Development and Abandonment Plan and continued interest in the asset.
The company is targeting introduction of a partner before it submits the FDAP, expected late in the fourth quarter.
The Temaris financing picture also includes a separate, broader mandate: Seascape appointed Macquarie Bank in June as sole structuring and technical bank to arrange multi-tranche project finance across Temaris and the 28%-owned DEWA Cluster, with any firm facility still conditional on legal and technical due diligence and lender approvals.
