Company statement of cash flows

		2025		2024
	Notes	£		£
Cash flow from operating activities
Profit/(loss) before taxation		6,123,114		(16,030,082)
Adjustments for:
Depreciation	15	5,376		6,227
Interest income		(172,673)		(205,656)
Share based payment expense	26	746,207		527,411
Unwinding discount on financial liability	21	10,507		14,114
Fair value loss on financial liability	21	84,279		55,023
Gain on disposal of subsidiary		(8,506,782)		-
Loss on disposal of joint venture	13	-		12,074,783
Operating loss before working capital changes		(1,709,972)		(3,558,180)
Trade and other receivables		(2,403,292)		714,941
Trade and other payables		(242,702)		(158,855)
Provisions	22	(21,055)		519,483
Cash used in operating activities		(4,377,021)		(2,482,611)
Movement in restricted cash and bank balances	16	-		803,417
Net cash used in operating activities		(4,377,021)		(1,679,194)
Cash flow from investing activities
Purchase of property, plant and equipment	15	(12,768)		(1,506)
Interest received		172,673		101,426
Advances to subsidiaries		(3,541,688)		(2,487,867)
Investment in subsidiaries	13	(299,897)		(191,673)
Proceeds from disposal of investment in subsidiary/joint venture		8,740,023		1,935,912
Net cash generated from investing activities		5,058,343		(643,708)
Cash flow from financing activities
Proceeds from issuance of ordinary shares	24/25	3,015		1,775,133
Net cash used in financing activities		3,015		1,775,133
Net increase/(decrease) in cash and cash equivalents		684,337		(547,769)
Cash and cash equivalents at beginning of the year		2,191,612		2,739,381
Foreign exchange		(14,107)		-
Cash and cash equivalents at end of the year	16	2,861,842		2,191,612
Relating to:
Bank balances and short-term deposits	16	2,861,842		2,191,612

Notes to the financial statements

1.Accounting policies

 

1.1 Company information

Seascape Energy Asia plc is an AIM public quoted company, limited by shares, incorporated in England and Wales. The registered office is at 5^th Floor, One New Change, London, EC4M 9AF. The principal activities of the Company and its subsidiaries are to explore, develop and produce hydrocarbons, particularly gas.

On 25 April 2025, the Group formed a new incorporated subsidiary, SEA One  with initial nominal share capital of MYR1.00 equivalent to £0.17..

 

1.2 Accounting convention

The financial statements have been prepared in accordance with UK adopted international accounting standards and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

The financial statements are prepared in British pounds sterling, which is the functional currency of the Group. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

 

1.3 Basis of consolidation

The consolidated financial statements include the financial statements of the Company and its subsidiaries made up to 31 December 2025.

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

Intragroup transactions, balances, unrealised gains and losses are eliminated on consolidation. Where necessary, adjustments are made to the financial statements of subsidiaries to ensure consistency of accounting policies with those of the Group.

All changes in the parent's ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Any difference between the amount by which the non-controlling interest is adjusted and the fair value of consideration paid or received is recognised directly in equity and attributed to owners of the parent.

 

1.4 Audit exemptions for subsidiaries companies

For the year ended 31 December 2025, the subsidiaries of the Company including Seascape Energy (2A) Limited and Seascape Energy (DEWA) Limited were entitled to exemption from audit under section 479 of the Companies Act 2006 relating to subsidiary companies.

The members have not required the subsidiary companies to obtain an audit of its accounts for the year in question in accordance with section 476.

The Directors acknowledge their responsibilities to comply with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

 

 

 

1.5 Foreign currencies

Functional and presentation currency

The functional currency for the Company is sterling with the US dollar being the functional currency for the subsidiaries companies including Seascape Energy (SE Asia) Sdn.Bhd, Seascape Energy (2A) Limited, Seascape Energy (DEWA) Limited and Seascape Energy Asia (One) Sdn. Bhd..

The financial statements are presented in sterling ("GBP"), which is the Group's and the Company's presentation currency. The resulting exchange differences arising from the conversion of the functional currency in USD to the presentation currency in GBP have been recognised within other comprehensive income/expense.

Transactions and balances

Transactions in foreign currencies during the year are recorded in the functional currency at the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities are translated at the rate ruling on the statement of financial position date and any gains and losses on translation are reflected in the statement of comprehensive income.

The assets and liabilities of foreign operations are translated into sterling at the rate of exchange ruling at the statement of financial position date. Income and expenses are translated at the rate of exchange ruling at the date of the transaction.  The resulting exchange differences on assets and liabilities of such foreign operations are taken directly to a separate component of equity. On disposal of a foreign entity, the deferred cumulative amount recognised in equity relating to that particular foreign operation is recognised in the Income Statement.

 

1.6 Joint arrangements

Judgement is required to determine when the Group has joint control over an arrangement, which requires an assessment of the relevant activities and when the decisions in relation to those activities require unanimous consent. The Group has determined that the relevant activities for its joint arrangements are those relating to the operating and capital decisions of the arrangement, including the approval of the annual capital and operating expenditure work programme and budget for the joint arrangement, and the approval of chosen service providers for any major capital expenditure as required by the joint operating agreements applicable to the entity's joint arrangements. The considerations made in determining joint control are similar to those necessary to determine control over subsidiaries, as set out in Note 3. Judgement is also required to classify a joint arrangement. Classifying the arrangement requires the Group to assess their rights and obligations arising from the arrangement. Specifically, the Group considers:

·      the structure of the joint arrangement; whether it is structured through a separate vehicle;

·      when the arrangement is structured through a separate vehicle, the Group also considers the rights and obligations arising therefrom:

·      the legal form of the separate vehicle; the terms of the contractual arrangement, or other facts and circumstances, considered on a case by case basis.

This assessment often requires significant judgement. A different conclusion about both joint control and whether the arrangement is a joint operation or a joint venture, may materially impact the accounting.

A joint operation is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities, relating to the arrangements.

In relation to its interests in joint operations, the Group recognises its:

·      assets, including its share of any assets held jointly;

·      liabilities, including its share of any liabilities incurred jointly;

·      revenue from the sale of its share of the output arising from the joint operation;

·      share of the revenue from the sale of the output by the joint operation; and

·      expenses, including its share of any expenses incurred jointly.

 

 

 

 

 

1.7 Going concern

The Directors have completed the going concern assessment, taking into account cash flow forecasts up to the end of

The Directors have completed the going concern assessment, taking into account cash flow forecasts up to December 2027, sensitivities to those forecasts and stress tests to assess whether the Company and its subsidiaries (together the Group) are a going concern. Having undertaken careful enquiry, the Directors are of the view that the Group will not need to access additional funds during the period to meet its current work programme and budget. In order to make a Final Investment Decision on its development assets, or make a substantial acquisition, the Group will require further funding. However, the timing and associated quantum will generally be at the discretion of the Group. Any required financing will be sourced through a combination of farm-downs, debt instruments and new equity capital.

 

1.8 Medium term sustainability

In the medium term, new acquisitions and developments resulting from exploration success will require further equity capital and new debt facilities. In any of these circumstances the Company will require additional financing from the equity markets and the bank or credit markets. Availability of such financing is subject not only to market conditions but also a continued willingness of investors to finance oil and gas companies.

 

1.9 Oil and Gas Assets

Capitalisation

Pre-acquisition costs on oil and gas assets are recognised in the Income Statement when incurred. Costs incurred after rights to explore have been obtained, such as geological and geophysical surveys, drilling and commercial appraisal costs and other directly attributable costs of exploration and appraisal including technical and administrative costs are capitalised as intangible exploration and evaluation ("E&E") assets. The assessment of what constitutes an individual E&E asset is based on technical criteria but essentially either a single licence area or contiguous licence areas with consistent geological features are designated as individual E&E assets.

E&E costs are not amortised prior to the conclusion of appraisal activities. Once active exploration is completed the asset is assessed for impairment. If commercial reserves are discovered then the carrying value of the E&E asset is reclassified as a development and production ("D&P") asset, following development sanction, but only after the carrying value is assessed for impairment and where appropriate the carrying value adjusted. If commercial reserves are not discovered the E&E asset is written off to the Income Statement.

Oil and gas assets include rights in respect of unproved properties. Property, plant and equipment, including expenditure on major inspections, and intangible assets are initially recognised in the statement of financial position at cost where it is probable that they will generate future economic benefits. This includes capitalisation of decommissioning and restoration costs associated with provisions for asset retirement.

Property, plant and equipment and intangible assets are subsequently carried at cost less accumulated depreciation, depletion and amortisation (including any impairment). Gains and losses on disposals are determined by comparing the proceeds with the carrying amounts of assets sold and are recognised in income, within interest and other income.

 

1.10 Licence and Property Acquisition Costs

Exploration licence costs are capitalised in intangible assets. Licence and property acquisition costs are not amortised during the exploration and evaluation phase and they are tested for impairment at least once a year and, in any case, when there is an indication that they may have become impaired, in accordance with the indicators of IFRS 6. This review includes confirming that exploration drilling is still under way or firmly planned, or that work is under way to determine that the discovery is economically viable. If no future activity is planned or the licence has been relinquished or has expired, the carrying value of the licence and property acquisition costs are written off through the income statement and other comprehensive income. Upon recognition of proved reserves and internal approval for development, the relevant expenditure is transferred to oil and gas properties.

 

1.11 Development Costs

Expenditure on the construction, installation or completion of infrastructure facilities such as platforms, pipelines and the drilling of development wells is capitalised within property, plant and equipment.

 

1.12 Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings                   33% straight line

Computers                                33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in the income statement.

 

1.13 Intangible assets

Computer Software

Costs incurred to acquire computer software that do not form an integral part of the related hardware are capitalised as intangible assets when the computer software is ready for its intended use. Computer software is amortised on a straight-line basis over the estimated useful life of three years.

The costs of computer software initially recognised include purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the intended manner.

When an indication of impairment exists, the carrying amount of the intangible assets is assessed for impairment. Refer to Note 1.15 to the financial statements for the accounting policy on impairment of non-financial assets.

 

1.14 Non-current investments in subsidiaries and joint ventures

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities. The subsidiaries of the Company are held at cost.

A joint venture is a joint arrangement whereby the parties that have joint control of the joint venture have rights to the net assets of the joint venture. The Group accounts for a joint venture using the equity method, where the investment in the joint venture is recognised at cost, and the carrying amount is increased or decreased to recognise the Group's share of the profit or loss of the investee after the date of acquisition. Transactions between the Group and the joint venture that relate to shared services are recognised in other income or expense as incurred and are disclosed in the related party transactions.

 

 

1.15 Impairment of non-current assets

At each reporting end date, the company reviews the carrying amounts of its non-current assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Any evidence on the performance of the assets received following the end of the period, which could not have been established during the current period will be recognised in a subsequent period rather than in the current period.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than the carrying amount, then the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of the recoverable amount, capped such that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Impairment of intangible assets is assessed when facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The facts and circumstances used are in accordance with those dictated by IFRS 6 and if any of those circumstances are present then an impairment test is performed in accordance with IAS 36 and any loss recognised. An exploratory well in progress at period end which is determined to be unsuccessful subsequent to the statement of financial position date based on substantive evidence obtained during the drilling process in that subsequent period is treated as a non-adjusting subsequent event.

 

1.16 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

Restricted cash comprises short-term deposits placed with financial institutions as security for guarantees issued in favour of PETRONAS in respect of minimum work commitment obligations. Such balances are restricted in use and are therefore not available for general operating purposes.

 

1.17 Financial assets

Financial assets are recognised in the Company's statement of financial position when the Company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in the statement of comprehensive income. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognised initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss and is included within finance income or finance costs in the Statement of Profit or Loss for the reporting period in which it arises.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue,and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Financial assets at fair value through other comprehensive income

The Company has made an irrevocable election to recognise changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognised initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to Accumulated Losses when an equity instrument is derecognised or its fair value substantially decreased. Dividends are recognised as finance income in profit or loss.

Impairment of financial assets

Financial assets, other than those measured at fair value through profit or loss, are assessed for impairment at each reporting end date.

For trade receivables, joint venture and intercompany receivables, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. Due to the nature of the balances the Company has determined that a provisions matrix is not appropriate and applies a scenario-based approach to estimate lifetime ECL.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

 

1.18 Financial liabilities

The Company recognises financial debt when the Company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either financial liabilities at fair value through profit or loss or other financial liabilities.

 

Financial liabilities at fair value through profit or loss

Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:

·      it has been incurred principally for the purpose of selling or repurchasing it in the near term; or

·      on initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has a recent actual pattern of short-term profit taking; or

·      it is a derivative that is not a financial guarantee contract or a designated and effective hedging instrument.

Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the Company's obligations are discharged, cancelled, or they expire.

 

1.19 Taxation

The tax expense represents the sum of the current tax and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the statement of financial position liability method. Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the Statement of Profit or Loss, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the Company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

 

1.20 Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

 

1.21 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

 

1.22 Leases

The right-of-use asset is initially measured at the amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the Company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the Company's estimate of the amount expected to be payable under a residual value guarantee; or the Company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

All leases are accounted for by recognising a right-of-use asset and a lease liability except for:

·      Leases of low value assets; and

·      Leases with a duration of 12 months or less.

 

 

 

1.23 Reserves

Share capital - Share capital represents the nominal value of shares issued less the nominal value of shares repurchased and cancelled.

Share premium - This reserve represents the difference between the issue price and the nominal value of shares at the date of issue, net of related issue costs and share premium cancelled.

Share based payment reserve - This reserve represents the potential liability for outstanding equity settled share options.

Accumulated Losses - Net revenue profits and losses of the Group which are revenue in nature are dealt with in this reserve.

Currency translation reserve - This reserve represents foreign exchange differences on the revaluation of the foreign subsidiary.

Other reserves - Other reserves relate to the nominal value of share capital repurchased and cancelled.

 

1.24 Share based payments

Employees (including senior executives) of the Group receive remuneration in the form of share-based payment transactions which are equity settled. The cost of equity-settled transactions with employees is measured by reference to the fair value at the date on which they are granted. The fair value is determined by the Group's internal expert using an appropriate pricing model.

The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (the "vesting date"). The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group's best estimate of the number of equity instruments that will ultimately vest. The statement of comprehensive income charge or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period.

The key areas of estimation regarding share-based payments are share price volatility and estimated lapse rates.

No adjustments are made in respect of market conditions not being met, neither the number of instruments nor the grant-date fair value is adjusted if the outcome of the market condition differs from the initial estimate.

Where the terms of an equity-settled award are modified, the minimum expense recognised is the expense as if the terms had not been modified. An additional expense is recognised for any modification, which increases the total fair value of the share-based payment arrangement, or is otherwise beneficial to the employee as measured at the date of modification.

Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award and designated as a replacement award on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the original award, as described in the previous paragraph.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of earnings per share.

 

1.25 Discontinued operations

In accordance with IFRS 5 "Non-current assets held for sale and discontinued operations" the net results relating to the disposal group are presented within discontinued operations in the Income Statement. Please refer to note 11 for further details.

In accordance with IFRS 10, in an event where the Company holding in an investment is diluted the holding will be assessed to establish if loss of control has occurred. 

In the event that loss of control is confirmed, the assets and liabilities of the subsidiary will be derecognised. The fair value of the consideration received in exchange for the loss of control will be recognised, in addition to the fair value of the investment retained.  Any other comprehensive income in relation to the former subsidiary will be reclassified to the statement of comprehensive income. Any difference in the entries above will be recognised as a gain or loss in the current year statement of comprehensive income.

 

1.26 Acquisitions

Acquisitions are assessed to determine whether they meet the criteria of a business combination or an asset purchase.

The Company determines that it has acquired a business when the acquired set of activities and assets include an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing goods or services to customers, generating investment income (such as dividends or interest) or generating other income from ordinary activities. When the Company acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. Business combinations are accounted for using the acquisition method under IFRS 3. The cost of an acquisition is measured at fair value, which shall be calculated as the sum of the fair values of the assets transferred by the acquirer at acquisition date, the liabilities incurred by the acquirer to former owners of the acquiree and the equity interests issued by the acquirer. For each business combination, the Company elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree's identifiable net assets. Acquisition-related costs are expensed as incurred and included in administrative expenses.

Certain acquisitions can be treated as an asset acquisition under IFRS 3, even when the definition of a business is met. This is referred to as the 'concentration test' and allows for an acquisition to be treated as an asset acquisition.

In circumstances where this test is passed, and the Company consider this accounting approach to be most appropriate, the Company will treat the acquisition as an asset acquisition rather than a business combination.  In this case, all assets and liabilities purchased are allocated a fair value and the core asset purchased is designated the remaining allocation of the fair value of the consideration. No good will or bargain purchase is recognised.

 

2.Adoption of new and revised standards and changes in accounting policies

In the current year, the following new and revised Standards and Interpretations have been adopted by the Group and Company. None of these new and revised Standards and Interpretations have any effect on the current year or a prior year.

Standard	Description	UKEB Effective Date
IAS 21 (amendments)	The Effects of Changes in Foreign Exchange Rates	1 January 2025

 

New and amended standards

The following amended standards and interpretation are effective for financial years commencing on or after 1 January 2026. The Group does not intend to adopt the standards below, before their mandatory application date.

 

Standard	Description	Adoption Date	UKEB Effective Date	Secretary of State Adoption Date
IFRS 9 (amendments)	Financial Instruments	15 April 2025	1 January 2026	Endorsed
IFRS 7 (amendments)	Financial Instruments (Disclosures)	15 April 2025	1 January 2026	Endorsed
IFRS 9 and IFRS 7 (amendments)	Contracts Referencing Nature-dependent Electricity	23 July 2025	1 January 2026	Endorsed
IFRS 18	Presentation and Disclosure in Financial Statements	10 December 2025	1 January 2027	Endorsed
IFRS 19 (amendments)	Subsidiaries without Public Accountability (Disclosures)	9 May 2024	1 January 2027	Endorsed

The Directors do not expect that the adoption of the Standards listed above will have a material impact on the financial statements of the Group and the Company.

The Group and the Company plan to adopt the above standards when from the effective dates noted in the table above.

 

3.Critical accounting estimates and judgements

In the application of the Group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

 

Exploration and evaluation assets

The Group take into consideration whether the exploration assets have suffered any impairment, taking into consideration licence status, planned expenditures, the results of the drilling to date, and the likelihood of reserves being found. The Group evaluated information from third parties in making these assessments, where available and the judgments can be subject to change, if future information becomes available. Refer to Note 14 for the key assumptions on the impairment review of exploration and evaluation assets.

 

Share-based payments

The fair value of share-based compensation expense arising from the Long-Term Incentive Plan, the Co-investment Plan and the NED Long Term Incentive Plan were estimated using the Black Scholes model and, where appropriate, the average Monte Carlo fair values and is recognised in the statement of comprehensive income from the date of grant over the vesting period with a corresponding increase directly in equity. The Monte Carlo model projects and averages the results for a range of potential outcomes for the vesting conditions, the principal assumptions for which the Group using in the estimation of the fair value are the historical 3 years share price volatility and dividend yields. The Black Scholes model is similar to the Monte Carlo model, but is more appropriate for estimating results with a single unknown variable. The Company currently values its share-based payment awards using the Black Scholes model. Refer to Note 26 for the estimates applied in determining the fair value of the share-based payment.

 

Impairment of investments in subsidiaries

Investments in subsidiaries and joint ventures have been assessed for recoverability based on the current value of the investments. Determination is based upon the assessment of exploration risk, net asset position and cash within the underlying entity. Refer to Note 13 for the key assumptions on the impairment review of investment in subsidiaries.

 

 

Expected credit loss

Analysis, which considers both historical and forward looking qualitative and quantitative information is performed by Management to determine whether the credit risk has significantly increased since the time the receivable was initially recognised. Management considers the expected credit losses (ECL) for the current receivables balances at Group level to be minimal, in view that these companies have no history of default and payment is made in a short period. Refer to Note 17 for the key assumptions on the impairment review of trade and other receivables.

 

 

Fair value of financial liabilities payable

Estimate and judgment was applied in fair valuing the contingent consideration payable for the acquisition of SE 2A (previously Topaz Number One Limited) in 2023. Management applied judgement in determining the likelihood of all possible scenarios and this was modelled into a weighted fair value calculation, which was discounted, using an estimated discount rate, to establish the current value of the financial liability payable to be recognised. As disclosed in note 21, the financial liability was made up of 3 tranches. Tranche 1 was settled in 2023 and tranche 2 was settled in 2025 upon the completion of the farmout of 2A PSC to INPEX. Only tranche 3 remains as contingent on a successful hydrocarbon discovery over a certain volume threshold and therefore subject to ongoing estimation and judgement. Refer to Note 21 for the estimates and judgment applied in determining the fair value of financial liabilities.

 

4.Operating Segment

During the year, the Group had two reportable operating segments: Malaysia and the UK Head Office. Non-current assets and operating liabilities are located in Malaysia, whilst the majority of current assets are carried at Head Office. The Group has not yet commenced production and therefore has no revenue. Each reportable segment adopts the same accounting policies. The operating segment's operating results are reviewed by the Group's CEO, to make decisions about resources to be allocated to the segment and assess its performance, for which discrete financial information is available.

 

In compliance with IFRS 8 'Operating Segments' the following table reconciles the operational profit/(loss) and the assets and liabilities of each reportable segment with the consolidated figures presented in these Financial Statements.

 

	Malaysia	Head Office	Norway	Total
	2025	2025	2025	2025
	£	£	£	£
Loss from operations	(535,980)	(3,848,371)	-	(4,384,351)
Finance cost	(18,210)	(10,507)	-	(28,717)
Investment income	66,959	172,672	-	239,631
Loss before tax from continued operations	(487,231)	(3,686,206)	-	(4,173,437)
Income tax credit	405	-	-	405
Loss after tax from continued operations	(486,826)	(3,686,206)	-	(4,173,032)
Profit from discontinued operations	9,151	9,606,265	-	9,615,416
(Loss)/profit for the year	(477,675)	5,920,059	-	5,442,384
Non-cash items
Share-based payment expenses 1	286,692	459,515	-	746,207

 

^{1 The share-based payment expense amounting to £753,642 (as disclosed in Note 6) consists of a currency translation difference of £7,435. This difference arises from the translation of share-based payment expenses recorded in SE SEA's income statement at the average exchange rate, while the corresponding share-based payment balance in the Company's statement of financial position is translated at the year-end exchange rate.}

	Malaysia	Head Office	Norway	Total
	2025	2025	2025	2025
	£	£	£	£
Total assets by reportable segment	6,508,104	4,401,850	-	10,909,954
Total assets	6,508,104	4,401,850	-	10,909,954
Total liabilities by reportable segment	(879,226)	(1,030,701)	-	(1,909,927)
Total liabilities	(879,226)	(1,030,701)	-	(1,909,927)

 

 

	Malaysia	Head Office	Norway	Total
	2024	2024	2024	2024
	£	£	£	£
Loss from operations	(663,087)	(5,112,071)	-	(5,775,158)
Finance cost	(1,711)	(19,970)	-	(21,681)
Investment income	10,332	101,426	-	111,758
Loss before tax from continued operations	(654,466)	(5,030,615)	-	(5,685,081)
Income tax expense	(419)	-	-	(419)
Loss after tax from continued operations	(654,885)	(5,030,615)	-	(5,685,500)
Loss from discontinued operations	(7,766)	(33,063)	(10,720,880)	(10,761,709)
Loss for Year	(662,651)	(5,063,678)	(10,720,880)	(16,447,209)
Non-cash items
Share-based payment expenses 2 3 4	104,575	424,648	186,758	715,981
Loss from investment	-	-	3,670,859	3,670,859
Impairment loss on investment	-	-	6,505,191	6,505,191

 

^{2 The share-based payment expense amounting to £714,169 (includes the share-based payment expenses amounted to £186,758 for former employees) consists of a currency translation difference of £1,812. This difference arises from the translation of share-based payment expenses recorded in SE SEA's income statement at the average exchange rate, while the corresponding share-based payment balance in the Company's statement of financial position is translated at the year-end exchange rate. Refer to Note 6 for more details.}

^{3 The share-based payment expense for Norway, previously incorrectly disclosed in the amount of £544,830 in respect of the financial years 2021 to 2024, has been revised to £186,758 to reflect solely the share-based payment expense attributable for the financial year 2024.}

^{4 The share-based payment expense for Malaysia, previously incorrectly disclosed in the amount of £102,763 has been revised to £104,575 to reflect the movement disclosed in Note 26.}

	Malaysia	Head Office	Norway	Total
	2024	2024	2024	2024
	£	£	£	£
Total assets by reportable segment	1,097,267	2,301,120	-	3,398,387
Assets in disposal group held for sale	942,659	75,911	-	1,018,570
Total assets	2,039,926	2,377,031	-	4,416,957
Total liabilities by reportable segment	(337,870)	(1,342,739)	-	(1,680,609)
Liabilities in disposal group held for sale	(67,426)	(3,962)	-	(71,388)
Total liabilities	(405,296)	(1,346,701)	-	(1,751,997)

 

5.Other income

	Group
	2025		2024
	£		£
Other income	202,053		934,570

For the financial year ended 31 December 2025, other income included a fee recharge with respect to manpower and management services provided by SE SEA to INPEX Malaysia E&P 2A Limited, which was sold on 17 March 2025.  Also included within 31 December 2024 was amounts charged to Longboat JAPEX, which was fully divested on 12 July 2024. In both cases, all agreements and recharges were terminated at the date of disposal.

 

6.Employees

The average monthly number of persons (including directors) employed by the Group and Company during the year was as follows, noting that the number of employees for 2024 includes the employees of Longboat JAPEX up until the date of completion of its disposal on 12 July 2024:

	Group
	2025		2024
	Number		Number
Executive Directors	3		4
Non-executive Directors	3		2
Staff	7		10
Total	13		16

 

	Company
	2025		2024
	Number		Number
Executive Directors	3		3
Non-executive Directors	2		2
Staff	2		2
Total	7		7

 

 

Their aggregate remuneration comprised:

	Group
	2025		2024
	£		£
Salaries, allowance and bonuses (including directors' remuneration) 1	2,386,899		2,827,915
Social security costs and insurance	239,180		182,191
Pension costs	131,922		102,675
Other employee benefits	4,352		-
Share-based payments expense 1	753,642		527,411
Remuneration - continuing operations	3,515,995		3,640,192
Capitalisation of personnel expense	(1,365,017)		-
	2,150,978		3,640,192
Remuneration - discontinued operations	-		591,495
	Group
	2025 £		2024 £
Executive directors' remuneration	1,611,390		1,339,614
Non-executive directors' remuneration	121,755		186,294
Salaries, allowance and bonuses	836,877		1,276,714
Pensions, social security and other benefits	192,331		310,159
Share-based payments expense 1	753,642		527,411
Remuneration - continuing operations	3,515,995		3,640,192
Capitalisation of personnel expense	(1,365,017)		-
	2,150,978		3,640,192

^{1 The share-based payment expense amounting to £753,642 (2024: £527,411 for continued operations and £186,758 for discontinued operations) includes a currency translation difference of £7,435 (£1,812). This difference arises from the translation of share-based payment expenses recorded in SE SEA's income statement at the average exchange rate, while the corresponding share-based payment balance in the Company's statement of financial position is translated at the year-end exchange rate.}

The remuneration of the highest paid director during the financial year 2025 is disclosed in the Total Remuneration of Executive Directors in Page 37.

 

 

 

 

 

 

 

 

 

 

 

 

 

7.Operating loss from continuing operations

GROUP

Operating loss for the year is stated after charging / (crediting):

	Group
	2025		2024
	£		£
Fees payable for the audit of the Company and consolidated financial statements:
- Current auditor	62,500		57,500
- Former auditor	-		20,510
	62,500		78,010
Fees payable for the audit in Malaysia of the subsidiary financial statements:
- Subsidiary's Malaysian auditor	10,175		13,311
Fees payable for non-audit services:
- Current auditor	3,000		-
- Former auditor	-		188,200
	3,000		188,200
Depreciation of property, plant and equipment	9,896		7,407
Amortisation of intangible assets	5,058		-
Legal, professional and business development expenditures	400,764		1,679,985

 

8.Finance costs

	Group
	2025		2024
	£		£
Bank guarantee commission for Temaris PSC	18,210		-
Unwinding of discount on financial liability (Note 21)	10,507		14,114
	28,717		14,114

 

9.Investment income

	Group
	2025		2024
	£		£
Interest income
Bank deposits	239,631		111,758

Investment income comprises bank deposit interest earned from unrestricted and restricted current cash accounts, alongside fixed term deposit interest. The interest rate earned from bank deposits during the reporting year ranged from 2.1% to 4.55% (2024: 2.75% to 5.15%).

 

10.Income tax expense

	Group
	2025		2024
	£		£
Deferred taxation
Reversal and origination of temporary difference	(405)		419
Total tax expense	(405)		419

The charge for the year can be reconciled to the profit/(loss) per the income statement as follows:

	2025		2024
	£		£
Loss before taxation	(4,173,437)		(5,685,081)
Expect tax credit based on a corporation tax rate of 25%	(1,043,359)		(1,421,270)
Effect on tax rate on different jurisdiction	14,362		5,970
Effect of expenses not deductible in determining taxable profit	296,695		359,804
Remeasurement of deferred tax for changes in tax rate	(8,747)		-
Movement in deferred tax not recognised	740,644		1,055,915
Taxation expense for the year	(405)		419

At the reporting date, the Group had an unrecognised deferred tax asset of £3.5 million (2024: £3.0 million), an increase of £0.5 million with respect to the effect of the increase in tax losses and capital allowances. Deferred tax assets, including those arising from temporary differences, are only recognised when it is considered likely that they will be commercially recovered, which is dependent on the generation of future assessable income of a nature and of an amount sufficient to enable the benefits to be utilised.

 

11.Profit/(loss) for the year from discontinued operations

On 17 March 2025, the Company completed the sale of its wholly-owned subsidiary, Longboat Energy (2A) Limited (since renamed INPEX Malaysia E&P 2A Limited) to INPEX Corporation for initial cash consideration of $10 million plus the reimbursement of historic costs and further contingent cash consideration of $10 million payable on a commercial discovery.

On 12 July 2024, the Company completed the sale of its 50.1% holding in its joint venture, Longboat JAPEX to its partner JAPEX, for a sum of $2.5 million.

The assets and liabilities of Longboat JAPEX and INPEX 2A have ceased to be consolidated by the Group following the loss of control. The profit or loss of the entities are disclosed as discontinued operations.

 

 

Profit/(loss) for the year from discontinued operations, net of tax	31 Dec 2025		31 Dec 2024
	£		£
Other income	9,669		-
Expenses excluding exploration write-offs	(5,229)		(40,829)
Profit/(loss) before tax on discontinued operations	4,440		(40,829)
Gain on disposal 2  12	9,610,976		-
Share of loss from equity accounted joint venture 1	-		(3,009,250)
Impairment loss on equity accounted joint venture 1	-		(6,505,191)
Share-based payments to joint venture	-		(544,830)
Currency translation difference from joint venture			(661,609)
Total profit/(loss) after tax from discontinued operations	9,615,416		(10,761,709)
Profit/(loss) per share from discontinued operations (note 12):
Basic	15.25		(18.30)
Diluted	14.00		(18.30)

¹ At the date of disposal of the Company's remaining 50.1% share in Longboat JAPEX, the carrying value of the investment was written down to the recoverable amount of $2.5 million (£1.9 million), resulting in an impairment charge of £6.5 million.

² At the date of disposal, the fair value of the subsidiary was calculated based on the fair value of the consideration received.

 

 

 

 

			INPEX 2A
			17 March 2025
			£
Fair value consideration			8,740,023
Contingent cash consideration			1,409,055
Net assets at date of loss of control			(538,102)
Gain on disposal			9,610,976

 

At the date of completion, the assets and liabilities of INPEX 2A and Longboat JAPEX were deconsolidated reflecting the loss of control of the subsidiary. Details of the balances at the date of completion are shown below:

Assets and liabilities deconsolidated			INPEX 2A
			17 March 2025
Intangible assets			650,229
Trade and other receivables			67,844
Cash and bank balances			79,398
Total assets			797,471
Trade and other payables			(243,230)
Other current liabilities			(16,139)
Total liabilities			(259,369)
Net Assets			538,102

 

On 17 June 2024 the Company announced the agreement to sell its 50.1% holding in Longboat JAPEX to JAPEX for a sum of $2.5 million. The sale was completed on 12 July 2024.

 

 

			Group
			£
Cost or valuation
At 1 January 2024			12,461,890
Proceeds from disposal of investment in joint venture			(1,935,912)
Share of loss from equity accounted joint venture			(3,009,250)
Impairment loss on equity accounted joint venture			(6,505,191)
Foreign exchange			(1,011,537)
At 31 December 2024			-

 

Longboat JAPEX Income statement

			Group
1 January 2024 to 12 July 2024			£
Revenue			10,536,338
Exploration write-off			(331,193)
Exploration Financing Facility fees			(230,162)
Impairment loss			(4,033,057)
Other operating costs			(10,335,625)
Tax			(1,612,788)
			(6,006,487)
Company share:  50.1% (Note 11)			(3,009,250)

In the period from 1 January 2024 to 12 July 2024, the majority of the loss relates to the impairment of Statfjord satellites licenses (£4.0 million) and tax expense (£1.6 million).

 

 

 

 

12. Earnings/(losses) per share

	Group
	2025		2024
	£		£
Number of shares
Weighted average number of ordinary shares for basic earnings per share	63,048,073		57,545,029
Weighted average number of ordinary shares for diluted earnings per share	63,048,073		57,545,029
Weighted average number of share options issued for diluted earnings per share	5,655,991		-
	68,704,063		57,545,029
Earnings/ (losses)
Earnings/ (losses) for basic and diluted losses per share being net earnings/ (loss) attributable to equity shareholders of the Company for:
Continuing operations	(4,173,032)		(5,685,500)
Discontinued operations	9,615,416		(10,761 709)
Earnings/ (losses) per share (expressed in pence)
Basic from continuing operations	(6.62)		(9.88)
Basic from discontinued operations	15.25		(18.70)
Diluted from discontinued operations	14.00		-

Basic and diluted earnings/ (losses) per share are calculated by dividing the earnings/ (losses) attributable to ordinary shareholders by the weighted average number of shares outstanding during the year. Share options and awards are not included in the dilutive calculation for loss making periods because they are anti-dilutive.

 

13.Investments in subsidiaries

	Company
	2025		2024
	£		£
Investment in subsidiaries	810,366		510,469

The Company's investments at the statement of financial position date in the share capital of companies include the following:

Company Name	Address	Incorporated	Class of shares	Holding %
Seascape Energy (2A) Limited	5th Floor, One New Change, London	6 Jul 2022	Ordinary	100
Seascape Energy (SE Asia) Sdn.Bhd.	Level 30-32, Menara Prestige, No 1, Jalan Pinang, Kuala Lumpur, 50450	19 Oct 2023	Ordinary	100
Seascape Energy (DEWA) Limited	5th Floor, One New Change, London	7 April 2024	Ordinary	100
Seascape Energy Asia (One) Sdn.Bhd.	Level 30-32, Menara Prestige, No 1, Jalan Pinang, Kuala Lumpur, 50450	25 April 2025	Ordinary	100

On 2 December 2024, the Company announced the farm out of the Block 2A PSC through the sale of INPEX 2A to INPEX Corporation. The sale was completed on 17 March 2025.

 

 

 

 

 

 

 

 

Movements in non-current investments

Company			Subsidiaries
			£
Cost
At 1 January 2024			610,469
Reclass to Assets held for sale (Note 19)			(100,000)
At 31 December 2024			510,469
Equity injection into INPEX 2A			662,341
Equity injection into SE 2A			140,000
Investment in SEA One			174,926
Disposal of INPEX 2A			(662,341)
Reclass of cost of investment in SE SEA to intercompany loan			(15,029)
At 31 December 2025			810,366

 

During the year, the Company assessed the carrying value of the investment in subsidiaries for indicators of impairment. No impairments were recognised during the year.

 

14.Intangible assets

Group	Exploration and evaluation assets		Software		Total
Cost	£		£		£
At 1 January 2024	572,512		-		572,512
Additions	277,997		-		277,997
Foreign currency adjustments	17,323		-		17,323
Reclass to Asset held for sale	(582,474)		-		(582,474)
At 31 December 2024	285,358		-		285,358
Additions	2,829,468		30,347		2,859,815
Disposal	(67,756)		-		(67,756)
Foreign currency adjustments	(147,713)		(503)		(148,216)
At 31 December 2025	2,899,357		29,844		2,929,201
Accumulated amortisation
At 1 January 2024	-		-		-
Amortisation for the year	-		-		-
At 31 December 2024	-		-		-
Amortisation for the year	-		5,058		5,058
Foreign currency adjustments	-		(84)		(84)
At 31 December 2025	-		4,974		4,974
Carrying amount
At 31 December 2025	2,899,357		24,870		2,924,227
At 31 December 2024	285,358		-		285,358

  

On 30 November 2024, the Group entered into an agreement with INPEX Corporation to farm out its interest in the 2A PSC through the sale of INPEX 2A. As at 31 December 2024, the exploration and evaluation assets held in the 2A PSC had been reclassified to Assets held for sale. On 17 March 2025, the assets held for sale were fully disposed of upon the completion of the sale of 2A PSC to INPEX Corporation.

 

The Group assesses its exploration and evaluation assets for impairment when facts and circumstances suggest that the carrying amount of an asset or cash-generating unit ("CGU") may exceed its recoverable amount.

 

In performing the assessment, the Group considered, amongst others:

 

(i)   the validity and remaining tenure of exploration licenses;

(ii)   the intention to continue exploration and evaluation activities;

(iii)  substantive planned and budgeted expenditure;

(iv)  results of exploration activities and technical evaluations; and

(v)  the potential for commercial hydrocarbon discoveries.

 

As at 31 December 2025, there were no indicators of impairment under IFRS 6 and, therefore, no full impairment assessment was undertaken.

 

15.Property, plant and equipment

Group	Fixture and fittings		Computers		Total
	£		£		£
Cost
At 1 January 2024	1,407		38,132		39,539
Additions	-		8,437		8,437
Foreign currency adjustments	-		126		126
At 31 December 2024	1,407		46,695		48,102
Additions	3,084		23,153		26,237
Foreign currency adjustments	(4)		(685)		(689)
At 31 December 2025	4,487		69,163		73,650
Accumulated depreciation
At 1 January 2024	938		28,240		29,178
Additions	469		6,938		7,407
Foreign currency adjustments	-		22		22
At 31 December 2024	1,407		35,200		36,607
Additions	600		9,296		9,896
Foreign currency adjustments	-		(154)		(154)
At 31 December 2025	2,007		44,342		46,349
Carrying amount
At 31 December 2025	2,480		24,821		27,301
At 31 December 2024	-		11,495		11,495

 

 

Company	Fixture and fittings		Computers		Total
	£		£		£
Cost
At 1 January 2024	1,407		38,132		39,539
Additions	-		1,506		1,506
At 31 December 2024	1,407		39,638		41,045
Additions	2,787		9,981		12,768
At 31 December 2025	4,194		49,619		53,813
Accumulated depreciation
At 1 January 2024	938		28,240		29,178
Additions	469		5,758		6,227
At 31 December 2024	1,407		33,998		35,405
Additions	559		4,817		5,376
At 31 December 2025	1,966		38,815		40,781
Carrying amount
At 31 December 2025	2,228		10,804		13,032
At 31 December 2024	-		5,640		5,640

 

 

16.Cash and cash equivalents

	Group			Company
	2025	2024		2025	2024
	£	£		£	£
Cash and bank balances	6,226,407	2,988,607		2,861,842	2,191,612
Less: cash restricted in use	(2,105,769)	(520,708)		-	-
Unrestricted cash and bank balances	4,120,638	2,467,899		2,861,842	2,191,612
Add: cash included as held for sale	-	315,363		-	-
Cash and cash equivalents	4,120,638	2,783,262		2,861,842	2,191,612

Cash restricted in use for the financial year ended 2025 represents deposits placed with financial institutions in support of guarantees issued in favour of PETRONAS equivalent to the value of minimum work commitment to be carried out by SEA One (£1,598,217) and SE DEWA (£507,552) (2024: SE DEWA amounted to £520,708).

 

17.Trade and other receivables

	Group
	2025		2024
	£		£
Current
Trade receivables	-		1,220
Receivable from joint venture partner	76,499		-
VAT recoverable	41,318		71,383
Other receivables	11,430		14,678
Deposits	6,936		1,522
Prepayments	186,781		24,124
	322,964		112,927
	Company
	2025		2024
	£		£
Current
Amounts owed by subsidiaries	1,436,729		635,720
Loan to subsidiaries	6,029,670		2,400,063
VAT recoverable	41,218		71,282
Other receivables	5,955		14,663
Prepayments	70,165		17,323
	7,583,737		3,139,051

The directors consider that the carrying amount of trade and other receivables approximates to their fair value.

Amounts owed by subsidiaries are unsecured, interest free, have no fixed date of repayment and are repayable on demand. Increase in the amounts owed by subsidiaries is mainly contributed by the management service charges to SE SEA and share-based expenses for share options granted to the subsidiary's employees.

The loans to subsidiaries are non-trade in nature, unsecured, bear interest of 7.50% per annum and are repayable on demand.

Analysis, which considers both historical and forward looking qualitative and quantitative information was performed by Management to determine whether the credit risk has significantly increased since the time the receivable was initially recognised. The Group and the Company have assessed the current receivable balances as at year end and no ECL provision has been determined to apply.

 

 

 

 

18.Other financial assets

	Group and Company
	2025		2024
	£		£
At 1 January	-		-
Recognition of financial assets during the year	1,409,055		-
At 31 December	1,409,055		-

On 17 March 2025, the Company completed the sale of its wholly-owned subsidiary, Longboat Energy (2A) Limited (since renamed INPEX Malaysia E&P 2A Limited) to INPEX Corporation for an initial cash consideration of $10 million plus the reimbursement of historic costs and further contingent cash consideration of $10 million payable on a commercial discovery.

The contingent cash consideration has been classified as a financial asset under IFRS 9, and as such has been recognised within the financial statements.

As with the financial liability associated with Block 2A (see note 21) to calculate the fair value of the consideration, the weighted average geological chance of success based on the third party Competent Persons Report of June 2024 was calculated. The asset was then discounted back to it's present value using a suitable risk-free rate, in this instance the UK 3-Year Guilt rate of 3.758% as at 31 December 2025.

 

19.Assets and liabilities classified as held for sale

					Group
					2024
					£
Intangible assets					582,474
Other receivables					120,733
Cash at bank					315,363
Total assets classified as held for sale					1,018,570
Trade and other payables					71,388
Total liabilities classified as held for sale					71,388
					Company
					2024
					£
Investment in subsidiary					100,000
Total assets classified as held for sale					100,000

On 17 March 2025, the assets and liabilities classified as held for sale were fully derecognised upon the completion of the sale of 2A PSC to INPEX Corporation. Please refer to Note 11 for further details.

 

20.Trade and other payables

	Group
	2025		2024
	£		£
Trade payables	205,949		76,299
Accruals	634,205		540,068
Pension and social security	85,302		39,085
Other payables	-		13,905
	925,456		669,357