SeaEnergy PLC: Results for the six months ended 30 June 2010

SeaEnergy PLC today announces its results for the six months ended 30 June 2010.

Operational highlights:

  • Offshore activity on SeaEnergy’s Round 3 Zone 1 site at Moray Firth has commenced, with geophysical, met-ocean and bird surveys all underway. A consent application along with an Environmental Impact Assessment is due for submission in 2012.
  • Arrangements with The Crown Estate to advance the Inch Cape project are now close to being concluded and importantly have allowed offshore work to commence.
  • Work on the Beatrice Offshore Wind Farm within Scottish Territorial Waters has also progressed well during the period, with geophysical survey work completed and geotechnical work on the site set to commence shortly.
  • SERL has signed a Strategic Cooperation Agreement with the Nantong COSCO Ship Steel Structure Co. Ltd (“NCSC”), a subsidiary of leading Chinese company COSCO Group, to jointly benefit from developing and marketing steel structures for the offshore wind industry.
  • Significant development of its Marine Services business, including the signing of two important agreements; a Letter of Intent with Ulstein and an Exclusivity Agreement with Ampelmann. The combination of Ulstein’s X-Bow vessel design with Ampelmann’s state of the art bridging system will allow the Marine Services business to provide enhanced accessibility and cost efficiencies to the offshore wind industry.
  • During the period, SeaEnergy has re-visited Montenegro to assess the state of its interests and joint ventures there following the country’s recent introduction of an Oil & Gas law. The next step for SeaEnergy in the region will be to renew discussions between the Ministry of Economy and our joint venture partners.
  • Despite the efforts of Mesopotamia Petroleum Company (“MPC”) in Iraq, MPC has been unable to generate any traction and little progress has been made. However, MPC is still engaged in discussions with a leading Middle Eastern group to acquire a comprehensive package of drilling assets.
  • Lansdowne Oil & Gas plc, in which SeaEnergy holds a 32.95% interest successfully secured two-year extensions to three of its Irish licences and expects to see increased activity in the Celtic Sea.

Financial highlights:

  • Loss from continuing operations after tax of £4.2 million for the first six months of 2010 (2009: £2.5 million).
  • Group cash balances at 30 June 2010 were £1.0 million (2009: £1.8 million).Financing agreement with LC Capital Master Fund Ltd extended until the earlier of 31 December 2010 or completion of the SERL sale process.

SERL Sale Process

  • The sale process of SERL, being coordinated by Ernst & Young, is progressing well and the Board is encouraged by the level of interest that has been shown. SeaEnergy will make further announcements regarding the sale in due course.

Steve Remp, Executive Chairman of SeaEnergy, commented:

“While the SERL sale process remains ongoing, we have been encouraged by the interest that has been expressed, including from the Far East. As we expect the sale process to be complete by the end of the year, we will re-focus our attention on exciting opportunities elsewhere in the business. “We believe the supply chain and service industry for offshore wind farms will be a rapidly growing and profitable sector and our Marine Team has done a terrific job over the past year in developing a business model surrounding turbine access and servicing. We now look toward generating orders, and ultimately cash flow, by providing the solution to what we believe is a key issue for offshore wind constructors and operators. “Elsewhere, while we continue to struggle to gain traction in Iraq, a new opportunity of significant potential has presented itself in the form of re-engagement in Montenegro and we will be working hard to clarify and confirm our position there together with our partners. This exciting opportunity is just one of a number across the business and the successful sale of SERL will allow us to maximise these opportunities fully and build greater shareholder value.”


Source: seaenergy-plc, October 01, 2010