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.

This wind farm is a TOTAL FAILURE. 23.5P NOW.

No surprise there hlyeo.

Another cracking call by RSItosser , lol

A very hot stock today

Full Nomura paper from oilbarrel newsletter ........valuation ...121p to 400p

Oilbarrel Newsletter 28th July 2010
July 27, 2010
Poweralternatives: SeaEnergy Acquires Value Through Its Stakes In Three Large Offshore Wind Farms -- By Stewart Dalby

Broker Nomura Code Securities has written an exhaustive and exhausting paper on its client SeaEnergy PLC in the wider context of wind power in the UK. A central finding of Nomura is that there is a looming 23 GW energy capacity shortfall in the UK which only nuclear and wind power particularly offshore wind power can fill.
What? wind power, I hear you say. Has not wind power become discredited, if not by our governments then by scientific opinion and self appointed media experts as a panacea for the UKs energy problems.

The Investors Chronicle, drawing heavily on www.withouthotair.com, the website of a book of the same name by a Cambridge University physics professor David Mackay, published an article which was critical of the UKs last Labour governments initiative to build numerous farms offshore in the North Sea. The so-called Third Round launched by that government is extremely ambitious. The labour government dished out enough acreage in 9 zones in the Third Round to build 32 gigawatts ( GW) of generating capacity. On one scale that is equivalent to 30 small power stations. The government of the day was keen to tell us the power from this lot would be enough to generate a quarter of the UKs demand for electricity.

But the scheme is less impressive when you look at the detail. True, 32 GW is a lot of power but it wont go that far. The 32 GW is the theoretical maximum. In practice every power station operates below its maximum, and if its a wind farm, its load factor will be far below. For example, take the Kentish Flats wind farm in the Thames estuary, which came on stream at the end of 2005. It was supposed to have a load factor of 36 per cent. On that assumption, it should generate 3.2 watts of power for every square metre of its 10 square kilometres. But in its first year of operation, its load factor ran out at 29 per cent and it generated 2.9 watts per square metre. Assume a load factor of 30 per cent for the putative 32 GW of capacity and you have about 10 GW of real power only enough for everyone to drive the theoretical family car for 3.3 miles per day as opposed to the 10 miles a day the 32.GW would give.

It is important to point out the growing doubts about the efficacy of offshore wind power because it could be germane to the financing of the Round Three projects, the latest development round of offshore wind farms. The financial community in the City of London has not, in a generalised sense, taken to the idea of offshore wind power. However, it could be that the Investors Chronicle is missing something in its sweeping criticism of offshore wind power.

Joel Staadecker, CEO of SeaEnergys 80 per cent owned subsidiary SeaEnergy Renewables Ltd (SERL) says: It is not for me to justify what Nomura says but I think the note on SeaEnergy is tightly written. It says if the UK is to meet its commitments to obtain a certain amount of its energy needs from renewables by certain date then offshore wind power is the best available option

Seen in this context offshore wind power looks justifiable and SeaEnergy with its oil and gas heritage and unique deep water wind expertise has a key stake in the exercise with 781 MW of potential power across three sites. This is equivalent to 8 per cent of the total planned UK deployment for the foreseeable future. Nomura argues that among the low carbon options the multi GW scale of the capacity rules out many renewables. Hydro cannot be significantly expanded, tidal and geothermal are too limited and early stage, wave power is promising but will do well to reach 1 GW of capacity by 2020. There is optimism that the UK feed-in tariffs system will stimulate a boom in solar that might deliver capacity on the GW scale by 2020. But this translates into only a few per cent of UK demand given the average plant load factors (PLFs) of under 10 per cent.

What is the significance of plant load factors? Put simply, 1 M W of capacity from different sources doesnt equal the same. 1GW of gas is worth 1.1 GW of nuclear, 2GW of offshore wind, around 3GW of onshore wind and probably 9GW of solar.

Whatever the arguments for and against offshore wind, the nine tenders in the Third round were tall taken up. The bids came largely from utilities like Scottish and Southern Energy. SeaEnergy is the exception in that it is a pure wind farm play.

How did a small company with a market of 30 million and limited funds became a player in this capital intensive industry? It is estimated that the successful implementation of all nine projects in Round Three will cost 100 billion.

SeaEnergy used to be Ramco Energy, an oil gas company. Ramcos modus operandi was to acquire oil and gas assets and trade them with major oil companies. Ramco famously held a stake in othe Azeri, Chirag, Guneshli (ACG) oil field in the Caspian Sea. It originally held 40 per cent of what was to become a 5 billion barrels field. But it traded most of its stake with a BP-led consortium and walked away with, if memory serves, some US$150 million. Ramco also had a services company.

SeaEnergys success in winning major offshore wind assets alongside utilities mirrors its O & G business. Versus oil, utilities lack offshore experience. This has made Sea Energy attractive to utilities and the Crown Estate, which owns the seabed.

SeaEnergy got its start when a team including Joel Staadecker built the Beatrice Demonstrator wind farm. The Beatrice field is owned by Talisman Energy and is in deep water in the North Sea. The two 5 MW turbines project was funded by Talisman, Scottish and Southern Energy (SSE) and various government bodies including the EU, UK and Scottish Executive. It had a number novel features. For example, the water depth, 40-45 metres required a different foundation method from the monopiles used for shallower waters and so a jacket structure was adopted from the oil and gas industry.

The project was finished in July 2007. The Beatrice core team was recruited by Ramco, as SeaEnergy then was, to form its new SeaEnergy Renewables Ltd( SERL) subsidiary, in which the Beatrice team hold 20 per cent of the equity.

After the Beatrice Demonstrator construction, SeaEnergy bid in the various UK rounds. The Crown Estate Round 1 was a pilot phase with farms limited to 30 turbines. Round 2 in December 2003 represented a scaling up. But it was in February 2009 that SeaEnergy really got among the projects. In that month it was announced that the company had been successfully awarded exclusive rights to develop two of the ten Scottish round sites, The 920 MW Beatrice (75 per cent Airtricity SSE, 25 per cent SeaEnergy) and 905 MW Inch Cape (75 per cent RWE, 25 per cent Sea Energy) are the second and third largest sites in the round. SeaEnergys model was the same as that used in the Caspian Sea in Ramcos daysa smaller company leveraging its unique assets to win a place alongside much larger players based on its experience in offshore and deep waters.

In January 2010 Sea Energy with its partner EDP Renovaveis (75 per cent) won the exclusive rights to develop Zone 1 Moray Firth, a 1.3 GW zone in the UK Round 3.

With construction of the Scottish round beginning in 2014 and the UK Round 3 in 2015 there is no plan for a further new round that would lead to construction before the end of the current decade.

On the basis of the 25 per cent stakes across three sites giving it an interest in 781 MW of power. Nomura values SeaEnergys at 121p a share. There seems to be nothing in the price for projects the company has won in Taiwan and China.

Nomura arrives at its valuation by saying: There are a growing number of valuation benchmarks from deals at each stage of development from 150,000/MW at the consent stage (2012/13) to 550,000MW at financial close. It is this period before the major expenditure on turbines and installation, that generates the most attractive returns on capital. With a 38 million share of expenses generating 10 times this asset value, at the current stage benchmarks imply that Sea Energy is worth 121p/share, with scope to rise to over 400p/share at financial close in 2013/14.Our forecasts include the costs associated with all the sites developement, but assumed sale of only one site at financial close in 2013.

After the Nomura note was written, RWE npower, SeaEnergys partner in the Inch Cape development notified SERL of its desire to exit the project. This is due to the considerable size of its other onshore and offshore renewable generation
commitments.

After this, Sea Energy announced a restructuring. It said: In order to maximise shareholder value and given the tough current financing environment, the company intends to dispose of all or a significant part of its holdings in SERL and has initiated a formal sale process.

A successful sale would allow the company to accelerate the development of its marine services business with the prospect of near-term earnings and cash flow. It seems that several third parties are interested in acquiring all or part of SERL.

Joe Saadbecker is sanguine apart the companys prospects. He told oilbarel.com: I am sure we will continue as a successful wind farm development company.

28.50 / 30p +5p

going places now as is getting into the 1 Million volume

Good volume today maybe the reason as we know news is due on several fronts.

A new push UP this afternoon after the early profit taking this morning
The volume is getting to the same size as yesterday, though not the same rise so far.

Continuing with last week rise

Could it be that some news are on the way about exploration? form MPC news........

MPC
The Company holds a 32.67 per cent stake in an associated company, MPC, of which Stephen Remp is currently Chairman. MPC is currently engaged in preliminary discussions with a leading Middle Eastern group to acquire a package of drilling assets including six relatively new and high specification rigs. This comprehensive package, which we believe is of high quality and ideal for Iraqi conditions, could form the basis of a formidable Iraq-based drilling operation, working either for the government or the new foreign consortia which have gained field development contracts in recent months.

Master RSI, a prominent poster on another thread who is based in Iraq has stated that they have the rigs and are going to target Kurdistan for drilling.

All we need now is RNS confirmation to justify the increased activity in trading.

I suspect SERL to gross at least 100million if the chinese are bidding, as EDPR need SERL at all costs.

Looking forward to a rosey future.

One for the "UPS"

Master RSI - 19 Aug'10 - 10:07 - 111 of 114 edit
SEA 24.75p

Reason; Bouncing with volume from a 61.8 Fibonacci retracement.

Just noticed the volume on the monitor as I open the screen, after yesterday's hold at 23.50p were I made the chart and it was at 61.8 Fibonacci, so I was expecting to move from there.
I was late on the screen this morning

Oh yeah the "ups", i remember that shocking thread from advfn !

Where all the serial lying pump and dumpers trying push their rubbish
onto the next mug !

You still pushing your stock onto the next mugs then rsi !

rdg

To be fair to rsi, I've made lots of money from his ups thread as a short term buy. Obviously I had the final decision over whether to buy or not.

The problem now is the market is so unpredictable that it is much more of a riskier play particularly in AIM stocks where the MM's are keeing their sp low and as such I very rarely do it. If and when the market improves though I believe it works and I don't believe rsi is purely doing it to pump his own stocks.

ps he ain't my brother, honest guv!

gravy

re - advfn

Did someone told me you were expelled from there?.
A little bird said Other posters told you too many names and you being of a fragile disposition could not handle

dealerdear

did you know " gravy" is a frustated poster, moving from one place to another.
That is talking rubish about my short term punts at "UPS" but is buying them.

The C#NT, has bought GGG, CAZA, and a few more lately and soon will get SEA aswell.

Keep cool rsi, to be fair I've had a good exchange of ideas with rdg on the COV thread

Rsi.

I would have thought advfn would have kept you busy enought with the ramping
dont you ?

How many sites are you using now then ?

Seems to be a different stock every day which suggest "pump and dump"

Well i know for a fact it's pump and dump, you've been doing the same ever
since i first saw you on market eye !

gravi

re - market eye

you seem to be all over the place not me then, they ban you there also?

How stupid can you be, "UPS" is shares on the move during the week, so one mention those stock, and then you BUY them, and now complaining.

Keeping you dirty SHIT mouth close would be much better for every one, do research before talk nonsence.

Caught with the trousers down again, SHAME you are wearing Knickers today.

About to go ballistic if sugested news from Saudi is to be believed.

I hold and have my fingers crossed.