SeaEnergy - The Offshore Wind Development Company
The only listed pure play offshore wind energy company in the UK


SeaEnergy PLC (formerly Ramco Energy plc), a Scottish public limited company, and its subsidiaries and associates form an energy group, headquartered in Aberdeen, Scotland.

In September 2009 the Board announced the intention to focus the Group entirely on renewable energy, specifically offshore wind. This decision was ratified by shareholders at a General Meeting to change the name of the Company to SeaEnergy PLC. The Group's legacy oil & gas assets will be disposed of over time in an orderly manner designed to maximise value for SeaEnergy PLC shareholders.

The renewable energy operating subsidiary SeaEnergy Renewables Limited has secured two offshore wind farm sites in the Scottish Round and is bidding for further sites in the UK Round 3. The Scottish sites are Beatrice (circa 920MWs), in joint venture with SSE subsidiary Airtricity and Inch Cape (circa 905MWs), in joint venture with RWE subsidiary npower. In each case, SeaEnergy has a 25% interest.

UK round three bids have been made in joint venture with EDP Renewables of Portugal.

The Greater Gabbard development recently achieved transaction valuation multiples when interests in that project were sold at the consented stage and immediately prior to construction , both during 2008. Those transactions achieved prices of approximately 157,000 and 567,000 per MW, respectively and provide a recent precedent which Ramco shareholders should be aware of. If these values are applied to the 456 MW's which SeaEnergy has secured in the Scottish Round, this would imply values of approximately 72 million and 259 million, respectively for the business, should those projects develop to the consenting and construction phases.

Legacy Oil & Gas Interests

The Companys portfolio of oil and gas interests are either minority stakes or non-operated assets and it is the Boards intention to dispose of these interests in an orderly manner over time. The Board does not expect that any further significant funds will be committed to the oil and gas assets unless required, in the opinion of the Directors, to preserve their value, and therefore shareholder value, ahead of any realisation.


Mesopotamia Petroleum Company (MPC)

The Company holds a 32.67 per cent stake in an associated company, MPC, of which Stephen Remp is currently Chairman. In February 2009 MPC signed a JV agreement with IDC, the Iraqi state-owned drilling company, to create IOSCO. We announced on 8 July that IDC had ended the IOSCO JV as MPC had failed to meet a funding deadline. The MPC Board remains as committed as ever to building a presence in Iraq and since that date has been pursuing the re-instatement of the JV. The Board of MPC believe that the market opportunity for delivering shareholder value in Iraq, through the establishment of an oil service JV that is focused on drilling high productivity wells and increasing Iraqs oil production, remains highly attractive.

IDCs decision to end the JV obviously had a negative impact on MPCs fundraising process but considerable efforts are continuing to be made by MPC, which is advised by JP Morgan Cazenove, to secure the funding, conditional on the re-instatement of the JV. Discussions with potential investors and IDC are on-going.

In addition, a number of new and promising opportunities have been brought to MPC and are currently being evaluated. Reaching a satisfactory conclusion may take longer than we might hope but the Board believes it will be time well spent. Further updates will be issued as and when developments materialise.

Lansdowne Oil & Gas plc

The Company currently holds a 36.26 per cent interest in Lansdowne which is itself AIM listed. In 2007 The Company granted an option over its interest in Lansdowne to LC Capital Master Fund (LC), and any disposal of our current holding will have to be arranged in conjunction with LC and as a result no decision has been made by the Board that this interest is for sale, at present.

SOCAR arbitration

The Company is pursuing a claim against SOCAR relating to rights connected to the shallow water Gunashli Field in Azerbaijan. An arbitration hearing has been scheduled for October 2009 in Stockholm and the outcome is expected to be known before the year end.

Eagle HC Limited

Eagle is owned 100 per cent by The Company and has royalty interests in nine North Sea blocks. Whilst none of the blocks are currently producing, two have had hydrocarbon discoveries drilled on them.

Other Oil & Gas interests

The Company holds a small royalty interest onshore Bulgaria, over acreage shortly due to commence production, and an interest in acreage offshore Montenegro, which is currently the subject of a dispute with the Montenegrin authorities. It is expected that as the Bulgarian acreage moves into production and the royalty starts to generate cash flow that there will be buyers for the royalty. It is unlikely that we will find a buyer for our interests in Montenegro unless and until the dispute is successfully resolved.

SeaEnergy (SEA) Update
6

06

2011
A little more detail on SeaEnergy:

In todays RNS which caused the shares to close the day down a whopping 43.5% SeaEnergy announced that, subject to shareholder approval, they will dispose of their 80% holding in their loss-making wind farm development business SeaEnergy Renewables, for a total consideration of 38.8 million. Yet SeaEnergys market cap at close of play today stands at 27 million. Whilst yesterday before they decided to sell this loss-making business the company was valued at 48 million. These figures just dont add up to me.

Also, whilst there were a lot of sells early on today, by close of play the buys almost equalled the sells (5.1 million sold, 4.9 million bought) so the drop certainly looks to have stabilised and indeed buys were outnumbering sells by end of day. All of this leads me to believe that a lot of the selling was caused by stops being taken out, and also by a snowball of irrational negative sentiment. So on a technical and fundamental viewpoint, I stand by my earlier assertion that the company seems oversold at these levels and that we could hope for a bounce from here.

I admit that I still have a lot more to learn on SEA and want to dig deeper into the proposed building of maintenance and construction vehicles for offshore wind farms (initial thoughts are it could be lucrative but expensivebut then they have just netted 30 million after clearing debts) but having had a loose eye on them for some time, this seemed to be too good an entry point to miss. I love shares where downside is limited by the fact that cash covers market cap and this now seems to fit the bill perfectly.

34p +0.875P

Trying since last Friday to bounce back after the last drop, but this morning was marked down earlier, since then a string of buyers have moved the price up again though a large spread now 32 / 36p, but buying is well below offer price

29p +2p

Direstor BUYING shares

SeaEnergy has been notified of the following dealings in the share capital of the Company:

Mr Steve Remp, Executive Chairman, through his pension fund, on 13 July 2011, purchased 311,770 ordinary shares of 10 pence each in the issued share capital of the Company ("Ordinary Shares"), equivalent to 0.45 per cent. of the issued voting share capital. The Ordinary Shares were purchased at 28.50 pence per share.

Following the above purchase, Mr Remp holds 5,141,088 Ordinary Shares, equivalent to 7.44 per cent of the issued voting share capital of the Company.

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mnamreh - do you hold these? I looked earlier in the year - but did nothing - see post 181.

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mnamreh - no, again see post 181 - I will look again later - a bit busy this morning :-)

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Mnamreh - I didn't buy these in the end, but will keep watching for now - good luck with them!

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Incredibly undervalued.....just has to climb.....fair value would mean that the sp has to double almost !.

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