K&L Gates Advises Seascape Energy Asia on Malaysian Farm-Out Deal With INPEX and a £2 Million Fundraise

Global law firm K&L Gates has advised Southeast Asia-focused exploration and production company Seascape Energy Asia plc (Seascape) on a Malaysian farm-out deal, which involves Seascape farming-out a 42.5% participating interest in its Block 2A production sharing contract (PSC) to Japanese exploration and production company INPEX CORPORATION. Seascape will retain a 10% participating interest in the contract through its wholly owned subsidiary, Topaz Number One Ltd., which will be fully carried through the exploration phase under the PSC as part of the transaction.

The firm also advised Seascape on its subscription and private placement of 5.7 million new shares, which raised £2 million that will be used to close the US$10 million Block 2A farm-out deal. Block 2A is located offshore Sarawak, eastern Malaysia in the North Luconia hydrocarbon province.

Seascape anticipates it will receive US$10 million from the farm-out transaction upon completion and a further US$10 million upon a commercial discovery. The deal is subject to partner and regulatory approvals and is expected to close in the spring of 2025.

The London-based deal team was led by partner Paul Tetlow (Corporate), with support from partner Giles Bavister (Tax), senior associates Robert Boughey (Corporate) and Ayesha Gill (Tax), along with Corporate associates Alexander Woolley and Madeleine Williams.

Nick Ingrassia, CEO of Seascape, commented: “I am enormously proud of our team which has worked tirelessly over the past few months to deliver a transaction which not only secures Seascape's future – but also creates a platform for growth. We look forward to working with our new partner, INPEX CORPORATION, along with PETRONAS and Petros to bring the transaction to a successful completion during Q1 2025.”

K&L Gates’ Corporate practice is one of the most substantial in the legal industry, with hundreds of lawyers in offices on five continents providing clients with practical legal solutions in the structuring, financing, and completion of domestic, international, and cross-border transactions.