SeaEnergy Announces Strategy of Business Development

Following the disposal of SeaEnergy Renewables Limited in June 2011, the Company has been actively focusing its core strategy of developing new ventures in the energy sector.

It has concluded that the Company should focus on the building and acquiring of complementary service businesses, including the provision of operations and maintenance to offshore wind farms and the vessels from which to provide these services.

SeaEnergy believes that the continuing development of this energy services business provides significant prospects for a sustainable and cash generative business model, with potential for the creation of further shareholder value.

The Group’s legacy oil and gas assets are not deemed to be core to this business but whilst there remain some near term value accretive opportunities further investments may be made. The Company will seek to realise the value of these holdings in due course.

 Board Changes and Disposals

The Company today also announces that Steve Remp (the current Executive Chairman) is stepping down from the Board. He is replaced by David Sigsworth (currently senior Non-Executive Director), as Non-Executive Chairman and John Aldersey-Williams (currently a Non-Executive Director) as Acting Chief Executive.

These Board changes will take place with immediate effect.

The Board is well advanced in the process of the selection and recruitment of a new Chief Executive and will make a further announcement when an appointment has been made.

Mr Remp is stepping down from the Group he founded in 1977 after a career spanning 34 years in order to concentrate on personal investment activities. During this time the Group recorded some ground breaking successes, most notably its participation in the ACG oil field in the Caspian Sea and, more recently, the sale of SeaEnergy Renewables. Mr Remp will receive £503,000 compensation under his service agreement and will acquire certain non-core group oil & gas interests in Montenegro, with SeaEnergy retaining an upside participation in any future realisations.

The Group has historically held interests in exploration offshore Montenegro, which have been the subject of disputes with the Montenegrin Government for a number of years. All of the Group’s efforts to resolve the disputes and re-start exploration in the area have to-date been unsuccessful and the Group has fully expensed all of its past costs in the region. The Board believes that ongoing disputes of this nature and the related costs will detract from the refined strategy which has been adopted.

Consequently the Board has agreed to transfer the subsidiaries which hold these interests to Gasmonte Limited (a company owned by Mr Remp) for nil consideration.

Mr Remp has expressed interest in funding the pursuit of these opportunities further and, although he will have no obligation to do so, the Group will be entitled to participate in any future success arising from these historic interests up to maximum of US $20 million. This allows the Group to retain a significant potential upside whilst avoiding the management time and ongoing costs involved with trying to resolve the disputes and advance the opportunities.

The Directors of Sea Energy PLC (other than Mr Remp, who is interested in the transaction), having consulted with Investec Investment Banking (a division of Investec Bank plc) the Company’s nominated adviser, consider that the terms of the disposal of Medusa Oil and Gas limited and Medusa (Montenegro) Limited to Gasmonte Limited are fair and reasonable insofar as the Company’s shareholders are concerned.

 Announcement of results for the year ended 31 December 2011.

It is anticipated that the audited results for the year ended 31 December 2011 will be announced in April 2012. At that time the board will provide shareholders with further details of its strategy for the Company and the results of its considerations on a return of capital to shareholders.

Commenting on today’s announcement, David Sigsworth said:

“The Board believes that a number of significant opportunities exist to sustainably build value, generate returns for shareholders and reduce share price volatility. On behalf of the Board, I would like to thank Steve for his unwavering commitment to the development of this Company and his continued support as a significant shareholder.”

 Steve Remp said:

“I am proud to have founded, built and led SeaEnergy, and Ramco before it, over more than three decades, and to have achieved some exceptional successes, including building partnerships with some of the world’s leading companies. I wish the new team every success and look forward to taking forward a number of exciting opportunities.”

[mappress]
Offshore Nieuws Staff, January 27, 2012