WTI (Mar) $63.21 +82c, Brent (Mar) $68.40 +83c, Diff -$5.19 +1c
USNG (Mar)* $3.73 -12c, UKNG (Feb) 100.90p -0.45p, TTF (Mar)* €37.865 +€1.01
*Denotes expiry of February contract

Oil price

Oil is surging again today, as I write Brent is over $70 and don’t forget that the March contract expires tonight so there may be some wild moves especially if there is any short covering, don’t say you weren’t warned…

Note that Henry Hub expired last night and the March month is reflecting the situation as was before the storm but don’t rest on your laurels there either. Iran is very much in the headlines as the US fleet is making its presence felt in the Gulf.

Seascape Energy Asia

Seascape has announced a material upgrade to its Keladi prospect following an updated independent evaluation of the Prospective Resources by Sproule ERCE on the Temaris Cluster (“Temaris”, 100% PI, operated). The Competent Persons Report (“CPR”) now ascribes almost 1 TCF of net mean unrisked Prospective Resources to the Temaris block. 

Highlights

• Keladi prospect upgrade to 423 bcf (+125%) with a 45% GCoS
• New Tembakau North prospect (29 bcf, 58% GCoS) identified representing a high impact, low risk, nearfield target which could be drilled from a planned Tembakau field platform
• Geophysical analysis and amplitude mapping demonstrates the Keladi prospect as being located up-dip and part of the same channel system as the Tembakau gas field
• Total Temaris net mean unrisked Prospective Resources of 950 bcf (+38%), illustrating significant running room beyond the Tembakau gas field itself 

All resources quoted herein are mean unrisked Prospective Resources as defined by PMRS Standard (as detailed below). 

Pierre Eliet, Executive Director and Country Chair Malaysia, commented:
“The Sproule ERCE independent resource update validates the high quality nature of the Temaris block and our significant resource base. We are particularly encouraged by the Keladi prospect, where mean unrisked Prospective Resources have more than doubled.

These results, along with Tembakau, position Temaris to become a transformative gas hub for Peninsular Malaysia’s growing energy demand.”

A further piece of good news today from Seascape who continue to impress, Keladi does indeed validate having doubled unrisked Prospective Resources and the Temaris block looks very exciting and where a partner will be found in due course.

On the bigger picture it is very helpful that the gas market in Peninsular Asia is very short gas for power generation, indeed the region is importing LNG from Australia at the moment which is clearly mad when they have so much unexploited resource at home.

Thus Petronas are encouraging companies like Seascape to find and develop gas in Peninsular Asia, that makes the company’s job a great deal easier and the ultimate market almost guaranteed with good margins. Obviously it’s slightly different in Sarawak where gas goes to Bintulu for export.

Readers know that I have been very keen on Seascape since day one, James Menzies has gathered a fantastic management team all of whom add a great deal to the process and I think that the prospects are excellent. The shares have continued to rise, up 130% y/y and with my TP of 100p looking easily achievable their space in the Bucket List is safe.

The upgrade at Keladi reflects a period of detailed work by the Seascape subsurface team using updated data and high-end geophysical techniques to extract seismic amplitudes which allow for more accurate mapping of the Miocene channel systems sitting at multiple horizons across the Temaris block to the west of Tembakau in the same channel play.

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.

In addition to the Tembakau field (246 Bcf 2C Contingent Resource) and the two largest prospects (Allemanda, Keladi totaling 830 Bcf mean Prospective Resources), the updated work shows several additional near-field exploration targets totaling over 110 bcf within 5 km of the Tembakau field and accessible from a planned Tembakau platform.  

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