I have been reading about Subsea resources, and I will be keeping an eye on the stock, as their first salvage operation is imminent, and it will be interesting to see what level of sucess they can achieve, measured against their expectations.



SubSea Resources has been formed to salvage cargoes from cargo ships that have been lost in deep water. Only a handful of wrecks have been salvaged in water depths exceeding 1000 metres, whereas hundreds have been worked on in depths down to 300 metres. The barrier to deeper work has been a lack of technology, which is now available mainly due to developments in the offshore oil and gas industry.

Sonar scan of wreck

SubSea Resources has identified at least 70 commercial salvage targets and has identified twenty major target vessels containing cargoes with a gross value of over $450 million (based on recent LME metal prices and contemporary lading records). In the first phase of the companys business plan it aims to raise the cargoes from six of these vessels over the next three years.


In addition, it is anticipated that certain historic cargoes may be integrated with the commercial salvage operations. Some of the historic targets have potential values of many millions of dollars each, bringing the combined value of identified historic and commercial targets to well over $1 billion.




Initial Salvage Targets

SubSea Resources has an initial programme to salvage the cargos of six commercial wrecks in the period to 31 March 2008. The gross value of these six wrecks is estimated at US$180 million.

The wrecks allow for a mix of weather conditions - allowing for both northern summer and winter working conditions. All wrecks are in international waters and all of the cargoes will be recovered through contracts with the legal owners. The water depths range from below 1500 meters to 5000+ meters.




Corporate website : http://www.subsearesources.com/index.php

I'm shy!

So SWW and Cynic - choose between drilling for oil using 2D and 3D seismic to guess where and how much (if any!) versus diving for sunken bullion clearly registered as to location and value at Lloyds? Why do we assume SUB is a higher risk than, say, SEY? Discuss . . .

sd

no need to ...... i currently hold neither thought used to be in SEY and was tempted by the sirens at SUB

We be pirates so there be gold down thar'

I've not said I wont buy.

I like this stock but cheaper!

I think this stock appeals to just about every bloke out there; slightly more interesting than insurance & banking!
I think I am right in saying that their income is to be derived from raising non-ferrous cargos which can be sold on the metals exchanges. I suppose they have to keep their cards close to their chest, but it would be nice to know what projects are in the pipeline & what cargos?
Also their profits are going to be dependent on high commodities prices, which may not remain this high for much longer.
Am watching with interest & agree with sww that sp needs to drop somewhat before I am tempted.

Harry and others .... please read my comment a few posts back ...... something strange that seemingly the company (or Shares Mag) should clarify as you will note

I dont think this will help the cause.

I am still watching but now unlikely to join in.

http://moneyam.uk-wire.com/cgi-bin/articles/200610160700194790K.html

SWW,

Well I think the selloff is overdone IMO.

I don't currently hold, but may well consider a few at this level when funds allow.

The RNS looks honest enough, and I didn't expect a problem free ride here, clearly they are trying out new technology and methods, and at the depths they are trying to recover from, (deeper than the Titanic!), there were bound to be some teething problems.

Oversold IMO.


SubSea Resources PLC
16 October 2006

SubSea Resources PLC
(or the 'Company')

Activity Update


John Lethbridge to be deployed on Celia
Geomaster returns to North Sea following initial operation on Celia
Miranda update


Celia

Following the successful completion of the phase 1 survey of the Miranda
project, the John Lethbridge (SubSea's 75 metre survey and recovery vessel) is
to replace the Geomaster on the Company's project Celia.

The Geomaster, contracted from Geoshippng through TS Marine, has opened up the
cargo on Celia to such an extent that it is now possible for John Lethbridge to
access at least 1,000 tonnes of copper (There are currently 5,000 tonnes
remaining on the vessel). John Lethbridge is expected to be on site over much of
the coming winter working period in conjunction with the ongoing Miranda survey.
The Geomaster is returning to Geoshipping for additional modification.

The Company has been very pleased with the performance of the Geomaster and TS
Marine. However, the project's appointed ROV operating company, FUGRO, have
performed very poorly. Without two reliable ROVs available to work the recovery
system, the significant costs entailed in keeping the entire heavy lift
operation at site are not justified. As a consequence the focus of the operation
will now change to a much lower cost but slower exercise, benefiting from the
progress made by the Geomaster. The Company expects to re-deploy the heavy cargo
team in 2007 both on what will be the completion of the Celia project and a
number of other recoveries.

The Company confirmed that recoveries to date exceeded 500 tonnes and that this
was achieved in less than 20 days of actual work, the remaining time having
largely been lost primarily to ROV failures. This 20 day period was not solely
devoted to cargo recovery but also covered hatch cover and tween deck removal
and removal of cargoes of coffee and sisal that were held in the upper holds.

A full report on the project to date will be published once the ROV contractors
have had the opportunity to comment on the poor level of performance.

John Kingsford (Operations Director) reported 'Despite genuinely heroic efforts
from the FUGRO offshore operators the state of their equipment was simply not up
to the task.'

The Company is satisfied that this was a problem that can be isolated to the
FUGRO ROVs, is not generic to the industry and is otherwise very pleased with
the progress of the Celia Project. The Company's in-house designed heavy lift
equipment worked as expected and, aside from addressing the FUGRO ROV issue,
only minor changes need to be made for heavy lift operations to be resumed next
year.

Miranda

The Company's survey team on board the vessel John Lethbridge have completed the
first phase of their survey work in on the Company's Miranda Project. This is a
single cargo of nickel, gross value of approximately US$80m (LME 13/10/06). The
Company has the exclusive recovery contract with the cargo owners.

During this operation SubSea's new state of the art sonar and ROV were deployed
for the first time at depths of over 4,000m (the Titanic lies at 3,700m). The
Company is extremely pleased with the results thus far, with the sonar providing
extremely high quality pictures of the sea floor, over great distances.

In addition to Miranda, this programme is providing several new copper cargoes.
The Company's heavy cargo recovery team will soon be receiving the survey
information and a programme to recover these cargoes will be developed. The
Miranda survey will continue in tandem with the Celia project, as described
below, as weather permits on one location or the other.

2007

As a consequence of the progress thus far on the Miranda and Celia Projects, the
Company plans to re-deploy its heavy lift equipment on the Celia site in 2007 to
complete the recovery and on the following other heavy recoveries; Kate - 70
tonnes silver, Dagma - 1500t copper, and Cristelle - 1500t copper. All of these
are located targets and the Company has either arranged or is in the process of
arranging contracts for their recovery.

Gina and Ella

In addition the Company will continue to plan for the location and recovery of
Gina - 20,000 ounces gold coin and bar. In view of Gina's likely location this
work will be best conducted from February through to April 2007. This cargo is
very similar in size to that of the Ella project which will also be pursued in
2007.

Future work programme

Following the operational success so far on Celia, in particular the excellent
performance of the vessel and the heavy lifting equipment, the Company is now
able to develop a longer term work programme. The Company is now actively
seeking to acquire certain long lead and long term contract items, in particular
ROVS, winches and a suitable recovery vessel.

Mark Gleave (Managing Director) confirmed that 'these changes will impact only
on the timing of the Company's revenue stream, not on the quantity. The work
done both on Celia and the Miranda survey now allows us to make far more
accurate planning of cargo recoveries.'

The Company is now planning for total revenues in the next 12 months of
approximately 50 million to be generated at a cost of approximately 15
million.

- ENDS -


Notes to editors:

The principal activity of SubSea Resources Plc., which joined AIM in November
2004, is the recovery of high value non-ferrous metals and other valuable
cargoes from deep water ship-wrecks (in excess of 1,000m). This activity
primarily involves the locations and recovery of bulk cargoes of non-ferrous
metals in modern metal-hulled wrecks, where title can easily be established and
where original owners can be identified ('commercial salvage')

Enquiries:

Alex Glover
Tel: 020 7930 9030 or M: 07887 610 335

Mark Gleave
Tel: 020 7495 8696



This information is provided by RNS
The company news service from the London Stock Exchange SCDXLFFQBBFFBX

Andy - very honest imo.

Can't ask for better than that, I thought it would drop, but to bomb like this is a bit much.

Now it's started though, I expect this to weaken a bit more.

Am still watching this one, but until they start actually recovering more cargo, I cannot see any reason for the sp to increase. Once the nickel is heading to the surface, then I can see interest picking up (Just hope by then the nickel price is as high or higher.)

fascinating companmy to watch, purely because of the technology involved and that all big and little boys get (over)excited atg the prospect of sunken treasure.

you don't need to invest to enjoy the thrills and spills!

cynic,

true, but a dabble here at the right time may well turn out to be fruitfiul IMO.

Looks as though we may have a few months to wait though.

personally, i would rather play blackjack!

Theres not much difference between this co and an oily or miner who says there's trewasure at the bottom, we just need to get it to the top.

It's unpredictable.

Not liking this anymore, I will stay a watcher for fun.

Not quite the same sww.
All these wrecks are charted and their cargoes are known, so the main difficulty is raising them from the depths, which seems to be possible now with ROV's.
Oil exploration is still not able to guarantee there is oil in the bottom of the well & the incidence of 'dusters' is considerable.

Fair comment H

I'm with Harrycat - SWW and Cynic I'm disappointed you did not take up my challenge to discsus the rellative reisks of known, guaranteed golden treasure difficult to bring to the surface and drilling for unknown black gold which can also be difficult to bring to the surface.

Oversold, likely to fall a bit more - will I be brave enough to catch the almost certain rise of 25-50% (??) at the appropriate moment?

Also with the price of Robusta at all time highs, there is an added bonus. Of course, with sisle, there are always strings attached - lol!

Key question - what of your current portfolio are you prepared to sell in order to invest in SUB?

sd

that's easy .... absolutely NONE!!

Actually SD I was being polite.

I also think there no chance of a rise inth sp, more chance of more falls.

And I would'nt sell anything to buy these.

SUB is submerging deep now...18.75p today...ARGH!