26 Jan 2012 15:28
SeaEnergy PLC
("SeaEnergy" or the "Company")
26 January, 2012
Strategic Update, Board Changes and Disposal of Montenegrin Interests.
SeaEnergy, announces today a strategic update and certain Board changes.
Strategic Update
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."
For further information contact:
SeaEnergy PLC John Aldersey-Williams - Acting Chief Executive Officer | +44 12 2474 8480 |
Investec James Grace David Flin | +44 20 7597 4000
|
Pelham Bell Pottinger Mark Antelme, Philippe Polman | +44 20 7861 3232 |
www.seaenergy-plc.com
Notes for Editors:
1. SeaEnergy PLC is an AIM listed company, which was first listed as Ramco Energy plc on the USM in 1984, and was also listed on the American Stock Exchange between 1997 and 2000. It changed its name to SeaEnergy PLC in 2008, to reflect its emerging focus on the renewables sector.
2. Over the last 35 years, the company has had interests in oilfield services, oilfield development, offshore wind farm development and has most recently been developing a business in offshore wind farm services.
3. David Sigsworth spent the majority of his career in the electricity utilities, latterly as a main board director of Scottish & Southern Energy plc (now SSE plc). His responsibilities covered energy trading, generation and supply. In 2005 he retired from SSE and now holds a number of non-executive directorships. He is also Chairman of the Scottish Environment Protection Agency.
4. John Aldersey-Williams graduated from Cambridge University with a degree in Geological Sciences in 1984. After a period as a geologist in the oil industry, during which he completed an MBA, he joined J. Henry Schroder Wagg & Co. Limited (now part of the Citigroup), as an investment banker in a specialist energy team. He returned to the oil industry, where his last position was Fiscal Manager, responsible for all aspects of financial planning, reporting and control for Texaco's North Sea producing business unit. In 2001, he founded Redfield Consulting, a consulting firm which has been active in the renewables and carbon capture and storage sectors. Key clients for Redfield were SeaEnergy PLC, the European Marine Energy Centre, Talisman Energy and the Scottish Government. John has been a non-executive director of SeaEnergy PLC since 2008.