Seascape Energy Regulatory News (SEA)

27 February 2014

Trading Update

SeaEnergy PLC (AIM: SEA) ("SeaEnergy" or the "Company") is pleased to announce a trading update in advance of announcing its audited results for the year ended 31 December 2013, which are expected to be released in early April 2014.

R2S

Over the past year R2S has achieved organic growth and seen an increased demand for its services from a number of its North Sea clients. The business has also expanded internationally, successfully completing a number of contracts in the Gulf of Mexico and in Mexico itself. Further international expansion and roll out of the R2S technology is expected, with a number of existing clients already negotiating global framework agreements.

The take up of the R2S visual asset management offering has been boosted by the introduction, late last year, of version 3 of our unique software together with the launch of a user group for clients. A wider offering of managed services is also being studied at the instigation of existing clients.

This momentum has continued into 2014 and R2S has enjoyed a positive start to the year securing a record order book for the first quarter, coming mainly from the core business in the UK North Sea where R2S enjoys strong relationships with many oil and gas operators including Total, BP and Nexen.

As a result R2S is on target to hit the final earn-out target which covers the year to the end of February 2014.

Consultancy

The Consultancy business has made continued progress with existing consultancy contracts being extended and the range of services expanded. Our contract with DONG, the largest operator of offshore wind farms, involves developing a strategic approach to asset management and asset integrity management. Another contract, with the Carbon Trust Offshore Wind Accelerator, a group of nine international energy companies which include the world's largest offshore wind developers, involves developing a standard means of assessing performance of specialist offshore wind support vessels.

We are pleased to announce that Mark Stagg will join the consulting team as Director of Consulting next month. Mark has over eighteen years of experience in organisational learning, change management and workforce development.

Most recently, Mark has been embedded in the Maritime and Coastguard Agency leading the design and implementation of a major modernisation programme. Mark has also led the design and delivery of an industry-wide, knowledge and culture change programme aimed at senior executive level and, established the development structure for a National Oil Company that included leadership and behavioural competency frameworks. His extensive experience in organisational development and organisational learning will further expand the range of services we can offer.

The Knowledge Transfer Partnership announced last August has commenced and we are delighted with progress made so far. That project's objective is to develop operational and economic models to optimise life cycle cost of operations and maintenance strategies in offshore wind farms.

Marine

We continue to work with wind farm developers and turbine manufacturers in developing their understanding of alternative strategies for offshore wind farm operations and maintenance, and to make the case for the SeaEnergy vessel design. We are in discussions with a potential joint venture partner to strengthen our position in relation to tenders which are expected over the coming months.

The experience of the Ship Management team which joined us in the second half of last year adds significantly to the strength of our marine tenders. SeaEnergy Ship Management is actively seeking ship management contracts for third party vessel owners, and is in discussions regarding a potential joint venture arrangement which would secure their first vessels under management.

Outlook

SeaEnergy has enjoyed a successful year and we look forward to continuing this momentum. With the business being driven primarily by the impressive growth of R2S, our pipeline of potential contracts across all divisions is healthy. We have expanded our team and our knowledge base and our new product capabilities will allow us to leverage our core strengths to attract and retain customers.

Commenting on the update, David Sigsworth, Chairman, said:

"In 2013 we achieved significant delivery across all of the strands of the strategy. The business has grown strongly, particularly R2S. Looking ahead, 2014 is set to be another strong year for SeaEnergy as we fully integrate R2S and grow our offering through each of our divisions"

For further information contact:

www.seaenergy-plc.com

www.r2s.co.uk