Seascape Energy has signed a letter of agreement with Petronas for a 547-square-kilometre extension of its Temaris Cluster Small Field Asset production sharing contract (PSC) offshore Malaysia, potentially doubling the gas resources identified in the area.
The extension, located north and east of the existing acreage, will increase the Temaris PSC area by approximately 45% to around 1,770 square kilometers, subject to the execution of final documentation.
Seascape holds a 100% interest in the PSC, which lies in approximately 70 meters of water on the western flank of the Malay Basin.
The expanded acreage covers a continuation of the Miocene sandstone system associated with the Tembakau and Mengkuang gas discoveries, allowing Seascape to pursue the wider gas play under a single PSC.
The company's previous technical work, including 3D seismic reprocessing using Full Waveform Inversion techniques, identified extensions of gas-bearing sandstone channels across the surrounding area.
An earlier independent competent person's report (CPR) identified approximately 950 billion cubic feet (bcf) of gross mean prospective resources within the original Temaris PSC.
Seascape said the additional acreage could potentially double the prospective resources identified in the area, although the revised estimate remains subject to independent assessment.
The company has commissioned Sproule ERCE to update the CPR, with publication expected in the fourth quarter of 2026.
Petronas also intends to make available new 3D seismic data being acquired over the extension area in late 2026 as part of a regional survey program.
Seascape expects the data to help assess a possible extension of the Mengkuang gas discovery, which has estimated 2C contingent resources of 29 bcf.
The additional work programme includes processing the new seismic data and drilling a contingent exploration well. Seascape said the firm financial commitment would be covered by its existing cash resources.
The Temaris PSC was awarded to Seascape in June 2025 and contains two gas discoveries alongside further exploration prospects.
Following the acreage expansion agreement, Seascape has restarted its search for a strategic partner in the project, having previously paused the farm-out process while discussions over the additional acreage were ongoing.
The company aims to introduce a partner before submitting its field development and abandonment plan (FDAP) in late 2026.
The expanded PSC would also allow future discoveries within the additional acreage to be developed under the same Small Field Asset fiscal terms.
Seascape said the proposed extension remains subject to the execution of final documentation.