Member Info for ZENGAS

Volume 7.5m yesterday. 7m so far today.

The 1.8 mmbls hedged for the 12 months end of Sept 2026 is 8c short of $70/b excl the premium which should take that to $72/b minimum. That will give $130m on 4,930 bopd. With the gas element i see no less than $400m revenue at 20,000 boepd from 1/10/25 (which is an average $49/boe for the rest of the oil/gas/condensate mix)- end Sept 26 so good visibility for over a year.

East Belamut Malaysia infill drilling from end Q1 should increase production somewhat and take up any slack in natural decline.

Costs should continue to decline ie Tank C storage Montara FPSO.

Australian onshore office cuts made.

Potentially trim elsewhere under this new management.

If '26 guidance is 21.5k boepd+ and oil prices are $60/b i could see $450m region being achieved by end Sept next year.

Half year results due next 4 weeks.

They still have potential acquisitions in their core areas strategy where they have existing critical mass re costs etc.

About 13,000 future boepd combined from Vietnam development/Malaysian shut in cluster (SFC 5k bopd/net 3k). - These 2 projects should push P2 to over 80 mmboe.

Still extremely cheap and just need a larger seller cleared for whatever their reason/strategy is. Large seller cleared out 14 months ago with over 7.7% in SEA at 15p region - recently 73p past month.

A broker note reiterated at 111p.

Temaris looking much better than initial award announcement and they've certainly set strong foundations for further s/p growth with or without 2a success. On a 50% farmout for Temaris, i suspect they could obtain $10m patrticularly with the exploration upside.

This would leave them with 40 mmboe across two projects and when moved to FDP approval = 40 mmboe 2P.

$3/boe P2/boe is almost 140p S/P target with the current shares in issue as they move those projects forward.

JSE can do nothing about the oil price but it's a good job they've been significantly growing production again and creating underlying value in actual 2P reserves creation.

Who say's the market is sceptical - all or some ? - bored seller/redemption from funds/change of focus suppressing the s/p versus lack of buyers ?

There's a significant institutional base plus Tyrus upping their stake ?

You can look over a range of companies with depressed share prices for various reasons and none.

Imo it's seeing the wood for the trees and imo the so called 'market' doesn't speak for all, one way or the other.

Regardless of the oil price trending lower, it pays to bear in mind against that, production has increased yearly by 60%, 75% and close to 80% higher than 3 years ago to a record high and reducing opex in the latest .

You overlook the gas mix which cannot be forgotten about (versus oil) and the regions shift to gas and GSAs for energy needs and the massive shortfall it endures. There's production potential of around 13,000 boepd yet to come even on farmouts from 2C assets not withstanding any possible further acquisition(s).

Likewise generating a 75% net increase in P2 after production from 37 mmboe 4 years ago to 64 mmboe now, doesn't come without making some sort of money nor the next uplift to the 80 mmboe 2P region.

FWIW There always has and will continue to be oil/gas/resource companies who never make any money other from their creation of reserves/resources - again why i believe seeing the wood from the trees.

Last i looked Sinuphorm in the space of 2 years had generated a significant cash return via a sale and intervening 2 years of production.

1 October 2020 - Global investment firm, The Carlyle Group (NASDAQ: CG), today announced that it has agreed to acquire Occidental’s entire onshore portfolio in Colombia (“Colombia Onshore”) for a total consideration of approximately $825 million with $700 million to be paid up-front, and the remainder payable subject to certain production and commodity price targets. The transaction is subject to customary regulatory approvals and is expected to close in Q4 2020.

Active in Colombia for over four decades, Colombia Onshore has well-established oil operations producing 33 thousand barrels of oil per day, on a net basis.

https://www.carlyle.com/media-room/news-release-archive/carlyle-group-acquire-occidental’s-onshore-operations-colombia

24 March 2025

Private equity giant Carlyle Group is exploring a $1.5bn sale of SierraCol, Colombia’s largest independent oil producer, as it looks to monetise another energy investment, according to a report by Reuters citing unnamed sources familiar with the matter.

Carlyle established SierraCol in 2020 after acquiring assets from Occidental Petroleum. Today, the company produces 45,000 barrels of oil equivalent per day, making it a leading independent player in Colombia’s oil sector.

The PE firm has a track record of building and exiting oil and gas investments, having previously sold Neptune Energy in the North Sea and Assala Energy in Gabon. Carlyle typically holds energy assets for about five years, focusing on reserves expansion, operational efficiencies, and positioning for future growth before seeking an exit.

SierraCol generated $172m in free cash flow in the 12 months ending September 2024 and reported net debt of $511m last year, according to a company presentation. Given the company’s strong cash flow and market position, Carlyle is expected to attract interest from both private equity firms and strategic energy buyers.

https://www.privateequitywire.co.uk/carlyle-eyes-1-5bn-sale-of-colombian-oil-producer-sierracol/

SierraCols' May 2025 presentation.

45,900 boepd production. 128 mmboe P2.

Net debt end Q1 2025 $636m.

NPValuation $1.7 biillion.

https://sierracolenergy.com/investors/presentations

By contrast and the Jadestone valuation.

20,300 boepd H1 2025. 64 mmboe 2P.

Net Debt end June $107m (closer to $70m)

NPValuation $772m from their internals.

Analysts target re-iterated 70p £1/$1.35)= $520m.

Doesn't take account of Vietnam or Malaysian Cluster 2C which even on a 50% farm out would move JSE to 80 mmboe 2P.

Upcoming drilling '26 on East Belamut field.

Bar any opportunistic bid, Skua coming on stream as planned shortly, my 60p target from here = under $450m valuation.

Deeko, That reason like LBE of old is no longer valid.

Previous shareholder myself.

I've sat back and watched it turn itself around regardless of the share price which has yet to play catch up.

It''s been sentiment much like LBE in the past. You're refferring to the Montara assets that now only make up under a quarter of their production versus it being their core asset a few years ago and expected to fall even further as reliance on it due to the start up of other assets and acquisitions. Waiting on a new well to come on stream and although over budget has twice the reservoir as in previous wells and Montara life extended by a further year so news on that imminent and a wait and see approach to how it performs.

Recent New management. Record production - up 35% year on year and average 20,300 boepd in H1 this year and near record revenues. 104% 2P reserves replacement in 2024. A significant base of further assetts to come on stream. Opex down and significant cost cutting/staff. Significant buying by a core shareholder in recent weeks and months while one reduced - reminds me of the same here last year. Extremely cheap and huge discount to fair value because investors foccussed on old historic issues to what was a great company but now has a raft of much wider assets and production. Further infill drilling on the PM323 Malaysian assets approaching as well as the afore mentioned Vietnam and Mayalasia shut-in cluster award around the same time as DEWA. Potential acquisitions as well - but has a route to 30,000 boepd by '27 imo via current assets and for that reason imo an obvious buy.

I'd add Conrad is nearly as highly valued as Jadestone yet look at the mismatch in assets/revenue/fcf etc re valuation.

JamY, I haven't followed any of the Falklands players since the days of Desire.

I looked at the valuations of JSE, SEA, Conrad, whether one believes they're over or under valued as SEA uses both Jadestone and Conrad in their presentations due to players in that area.

Conrad Asia Energy

193.1m shares x A86c/49p = m/cap of £82m. Raised £4.5m recently.

They have a net 231 bcf (38 mmboe 2C) in the Indonesian Duyung Mako gas field. Recently signed a GSA for 112 mmcf/d (18.5k boepd). Seeking to farm this down . They should have a FID in the coming months with first gas in 2027. Development costs are around $300m and why they seek a partner.

They also have 161 bcf (26 mmboe 2C) in Aceh they hope to progress.

No production or revenue.

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Seascape 63.1m shares @ 70p = £44m m/cap and about £7.5m cash. Approx 60 mmboe 2C in Temaris and Dewa. Stated $4-$7/boe capex development cost.

Dewa first gas in 2027 and should have a future similar production expectatuion as Conrad.

No production or revenue.

The unknown is the timing of an actual spud at Kertang/2C by Inpex - 26/27 ?

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Jadestone

541m shares @ 20.75p = £112m m/cap. Net debt $107m (excluding June lifting paid in July) but closer to $80m net debt.

2P = 64 mmboe. 2C = 120 mmboe. H1 25 Production 20,300 boepd. Revenue $228m ($450m pro rata 12 months). FCF estimate of $270-$360m 2025 - 2027.

Like Sea/Conrad - 2 Projects on similar timeline expected to come through ie

Vietnam 13,000 boepd and 30 mmboe of 2C + farmout expected. GSA signed and FID submitted. On approval, this will move 2P to circa 80 mmboe on a 50% farmout.

Puteri Cluster award Malaysia in July 2024 being progressed similar to DEWA. This has 3,000 bopd + 9 mmboe 2C net shut-in and significant upside potential and acerage similar to SEA in Malaysia alone.

JSE say they are at a deep discount to CPR value at 102p/share or £550m m/cap after allowing for net debt.

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You could say SEA could reach £1 and £63m m/cap on the above Conrad basis for Temaris/Dewa relative to Mako/Aceh assets and their similar timescale and to JSEs full £550m CPR valuation (£112m now) if Kertang were a success.

JSE have 184 mmboe 2P/2C but at present has a huge valuation lag.

SEA are targetting 160 mm boe at Kertang and post Temaris farmout and DEWA as is, it's about 200 mmboe potential - so if £550m is attributed to JSE (currently £112m) after net debt, that's coming in close to £9/share for SEA of potential on success. I'd expect some level of debt funding for DEWA.

Updated in the last 3 days. As i see it, i think l there are 2 increases since the last time in late May by JO Hambro and Ingalls and Snyder while a small decrease by RWC ?

With the exception of a cost over-run at Skua, it's nothing short of excellent which may yet be tempered by better production. As i expected and why i bought in heavily at the start of the week waiting on this turnaround to continue.

Opex continuing to fall and should fall further and is reduced down by $10-$20m tempering the cost over-run at Skua.

Production guidance increased by 1,000 boepd and has averaged 20,300 boepd for H1 - brilliant and imo should be maintained with the Skua well coming on to keep that average high for the full year.

Net debt $107.6m - better than my avaerge that i was comfortable with investing at (I allowed $125m year end 25 in my earlier post (ad v f n).

$62m arriving just outside that period would have taken this down by $35m approx - so possibly could look closer to around $70m and with a strong H2 net debt should tumble - but it isn't a priority.

About 13,000 of new production (plus book new 2Preserves) to come on from development projects.

Absolutely cheap as chips when you go through it in detail - "Jadestone's share price continues to trade at a deep discount to net asset value."

The FDP on the NamDu/U-Minh fields was submitted back in mid March 4 months ago.

A 100 mmcf/d facility with 80 mmcf/d sales envisaged = 13,000 boepd. 30 mmboe of 2C which would move to 2P on development approval. It also benefits from $140m worth of recoverable sunk costs. A lot of value here alone.

A 50% farmout would still see JSE have some 6,500 boepd new production and 15 mmboe 2P added to the current 64 (less production). Given the multiple prospects surrounding the 2 fields there is substantial resource upside which may hold 1.5 TCF in place. Given the amount of prospects, you only have to look at the swathe of multiple gas fields in close proximity beyond the tri-partite zone - slide 4 here, to believe there will be more upside to JSEs reserves there. https://www.jadestone-energy.com/wp-content/uploads/2024/01/20240126-Vietnam-NDUM-Project-Overview-vF.pdf

Likewise the Malaysian East Belamut field phase 9 to commercialise 3.5 mmbo reserves with first oil targeted next year.

The Malaysian 348km2 SFA cluster that JSE was awarded 100% interest in, last July 2024 under the new smaller fields' incentive - these were shut in in 2022 at 5,000 boepd and contain 15 mmbls 2C recoverable. 'Jadestone believes there is the potential for significant upside from future infill drilling across the existing SFA Cluster fields as well as prospects and leads on the surrounding PM428 PSC.' A FDP will be drawing closer hopefully and the two licences offer signifacant upside. Commencing talks with Petronas on improved terms re the 2 main licences.

That's 3 development projects alone that have around 14-15,000 boepd of new production imo to bring on and a substantial amount of additional P2 reserves - before any of the combined infill drilling upside as well as exploration.

Bought 500k in 4 tranches. On all fronts, looking very cheap.

In Seascapes recent and todays presentation they have listed Criterium amongst their valuation metrics. SEA also mentioned that they had got a lot of calls about the 1200 km2 Temaris PSC from others in the industry.

By comparrison, Criterium are selling their 42.5% interest in their Indonesian Bulu 697 km2 PSC which has the undeveloped Lengo gas field in May 2024 for $7.75m which represented 134 bcf or 22 mmboe or half of what Temaris is. If the Temaris PSC was farmed out by 50% i'd expect SEA to get around $10m and perhaps a lot more considering the exploration upside along with the possibility of them gaining adjacent open acreage which they again mention today.

" Transaction Update

Consideration for the Transaction will be paid as follows:

▪ a US$500,000 non-refundable signing payment, received by Criterium prior to signing the SPA;

▪ an additional non-refundable deposit of US$1,500,000 payable prior to closing the Transaction; and

▪ a US$5,750,000 payment due upon closing of the Transaction.

The Lengo gas field was discovered in 2008 by the Lengo-1 well and appraised in 2013 by the Lengo-2 well. Both wells tested commercial quantities of gas from the Kujung Formation and identified a gas-water contact consistant with indications on 3D seismic. Lengo has independently been assessed to contain 2C resource of 359 bcf (134 bcf net to Criterium). "

I'd be fairly confident that SEA are sitting on $10m of farmout option money for Temaris. This is why i think they know they're in a very good place and have options with or without a successful outcome at Kertang.

DEWA estimated to contribute around 5,000 boepd net to SEA and Temaris 8,500 boepd at 50% farmed to take them to 13k+ boepd approx overall.

They farmed out 2A fully carried for 2 wells. They've gotten $10m+ some back costs upfront.

There'd be another $10m to come in from 2A on a commercial discovery.

Last year they said they wanted a pipeline of these kind of discovered resource opportunities to develop as follow on. Today they reiterate the 'potential to establish a third core area in Malaysia' as part of future growth steps.

Thanks offwork.

I heard them say they wanted to attract more institutional investors because they do have a fantastic investment story so possibly the new presentations/road shows are an effort to address this.

Not so sure that it’s to raise cash as they want to keep dilution to a minimum but if there’s a producing asset opportunity then who knows.

As I see it, they are sitting on another $10m region of farm out cash for 50% of Temaris if need be. They don’t need to make that decision now as I believe Kertang will be drilled before that. If Kertang is successful they’d have another $10m cash payment and the share price would on its own advance accordingly. I don’t see them keeping 2A through to development as it’s too far off and cash needs too high. Instead, like Cove sell it all or retain a royalty interest and concentrate on DEWA and Temaris which on their own could be worth £250m+ of value plus the added upside of exploration potential and any other deals in the pipeline over the short-medium term.

Where did you get your info on holdings from ? They look way off on the institutional side as there’s been no TR1s anytime recently and the majority of them are not on Seascapes holdings page either of late June 2025.

DEWA - there's a further 6 fields which look as big as the six in the first phase where there is 14-18 mmboe net recoverable to SEA.

There is upside infill and some reservoirs that were not tested in the first 6 fields. So potentially a lot of upside to the current net 14-18 mmboe.

TEMARIS - They said they were getting calls about this already (maybe similar to the industry interest in 2A ?). 42 mmboe discovered. Significant exploration upside and they expect this could double. In slide 7 of the latest presentation they show 4 arrows pointing to prospective resources similar to the Tembakau and Mengkuang discoveries. The prospective prospects in 3 groups to the left (West) in the 1200km2 PSC are much bigger at least in areal extent than the Tembakau appraised discovery itself.

In addition, the very mention that they expect the Temaris prospectivity continuing into adjoining open acreage lends to the expectation that they are chasing this. If so, there could be another major farmout chance for cash given we have proved discoveries.

Given our 100% interest here and even farmed down to 50% in Temaris, this could actually be as interesting as the value ascribed to Kertang (if we pick up the open acreage later this year ?) when you consider that we hold 10% in 2A. Perhaps pro-rata the valuation metrics could be as high for Temaris/surrounding acerage as it is for Kertang. If so the Temaris upisde could be +2 X to that given in the present slide.

2A - Kertang on slide 10 at 166 mmboe mid case net to SEA if it comes in (with upside to 370 mmboe).

Has further additional upside in the Turbidite play trend beyond Kertang.

There is a further group of very large structures in 2A that would be derisked if a discovery is made in Kertang.

Cavendish target was increased to 111p and unrisked over £25. I think this would be increased again if some of that open acreage is won next To Temaris sand agin on any other resource acquisition - which they are still hoping to add.

Just becasuse some investments don't pan out, fail or get bogged down in operational/country issues is never a reason not to open ones eyes or listen just because they haven't been right before. It's up to the individual to do their own research. Only for Malcy i don't think too many would have been aware or even known of GM. I'm still fully behind my investment in SAVE also and see the recent director interest as a turning point/vote of confidence regardless of how others see it.

9 bagger for anyone who looked at Malcys take just 12 months ago on Seascape.

5/6/24 = 6.1p

'The company has been in the process of building the SE Asia portfolio already and if it hadn’t been for the Norway problems then I suspect Mr Menzies would have a bit more already. But the first asset that he has bought for the company has been something of a success already as Longboat, at the APAC Energy Assembly in Singapore has been awarded the ‘New entrant of the year award’ for the acquisition of the 2A block offshore Sarawak, Malaysia something that James Menzies is very proud of.

I can go into more detail at a later stage as it is laden with excitement and I reckon that they have been awarded, at no cost, the hottest block in the area, hence the award. With plenty more to come there is something to keep an eye on and a number of exciting opportunities which are made for the E&P sector and companies of Longboat’s size. Add to that the appointment of industry legend Geraldine Murphy to the board and the resurrection of Longboat is much closer than I had expected it to be.'

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17/6/24 = 7.34p

'The speed with which Longboat has got to grips with the Norwegian problem, cut a deal to sell and move forward has been very impressive. Fortunate maybe, in having 2A and Mr Menzies to call upon but I can’t think of anything or anyone better to lead the company going forward.

I have said twice now that investors should not hang around in reassessing and deciding to invest in what we should call ‘New Longboat’, with a CPR imminent I have a feeling that there is lots of upside here and maybe quite quickly too.'

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Price today after three company changing deals 52p (recently 56p).

‘We don’t have any revenue’’.

We just had $10m plus some back costs.

Not too many teams that can add the above so quickly as well as bring actual discovered and tested resources to the company without having to raise either drilling or acquisition capital. which would have substantially diluted/cost us in acquiring those near 50-60 mmboe range on top of the upside in untested reservoirs and exploration potential.. Think about that when doing your sums on what that actually means.

That’s looking back at 2024 and the new pivot/team took shape in mid 24. Ned’s since are on £35k. Surprised someone of GMs experience and expertise gets paid so low despite the share options. Figures are not for the directors but for an entire team and number of employees at 15/16 then.

Tennyson

Initiated coverage today with a Buy stance and target price of 43p.

Base core value excl receivables/arbitration 26p.

Target price of 43p assumes 50% for receivables and 33% of $1100m arbitration.

Further 7.4p for Uquo 2C, Stubb Creek 2C and Niger 2C = 51p (Risked at 70%, 70% and 50% respectively).

Unrisked 106p and doesn't include Niger exploration.

Still only a £32m m/cap company but this has built BOEs at zero acquisition cost, zero drilling cost. If it had discovered these the conventional way by raising cash, drilling or acquisition this would be £60m+ for the BOEs it now has plus the major farmout and the stated goal ofwidening the asset base further.

My post on them bringing in GM last year 1/7/24

'What takes someone of this calibre to LBE ? Outstanding contacts, deal making and described as an industry legend in Malcys recent write up. With us already being approached by a good number of potential partners her experience will be invaluable. I expect further deals in the pipeline in bringing someone of this calibre onboard.'

22-12-2012 - GERALDINE Murphy heads the oil & gas advisory team at Standard Chartered Bank and is leading the team advising Cove Energy.

She joined the bank in 2007 following the acquisition of Harrison Lovegrove & Co and has over 20 years of oil and gas deal experience.

Prior to joining Standard Chartered she was an executive director with CIBC World Markets Oil & Gas M&A team in Calgary and London.

She has advised on over $25bn of transactions in the sector including recently advising Chinese NOC Sinochem on the £532m acquisition of Emerald Energy.

BP on the $7bn sale of assets in US, Canada and Egypt to Apache Corporation in 2010.

https://www.cityam.com/meet-the-advisers-2/

She joined Impact Oil and Gas in July 2016 as a non ex and in the following year Impact had major farm outs to TOTAL and CNOOC (Chinas Nat oil Co).

MIKE DOHERTY, EXECUTIVE CHAIRMAN OF IMPACT OIL & GAS SAID:

WE ARE DELIGHTED TO WELCOME SOMEONE OF GERALDINES CALIBRE TO THE BOARD OF IMPACT. GERALDINES WIDE RANGING ADVISORY SKILLS, OUTSTANDING TRACK RECORD AND DEEP SECTOR KNOWLEDGE AND EXPERTISE COMPLEMENT THE EXISTING SKILLS OF THE BOARD AND WILL BE OF SIGNIFICANT VALUE TO IMPACT AS WE ENTER OUR NEXT STAGE OF GROWTH. OUR BUSINESS MODEL IS BASED ON OUR ABILITY TO ATTRACT, AND ARRANGE JOINT VENTURES WITH, MAJOR COMPANIES IN OUR INDUSTRY

https://impactoilandgas.com

Now currently Senior Advisor at TPH&Co the Energy business of Perella Weinberg.

https://tphco.com/team/geraldine-murphy/

From SEA - "brings a wealth of financial and transactional experience with over 35 years of energy investment banking and M&A advisory roles. Geraldine currently serves as a Senior Adviser at TPH&Co., the energy business of Perella Weinberg Partners where she was a partner and head of TPH International since 2017. She has worked in the energy departments of Standard Chartered Bank, CIBC World Markets and Harrison Lovegrove amongst others."