Scotland business

Deal throws SeaEnergy temporary lifeline

Sea Energy Image copyright Google
Image caption Aberdeen-based SeaEnergy announced last month that it was in talks with insolvency advisers

Troubled offshore energy services firm SeaEnergy has been thrown a temporary lifeline after striking a deal over the potential sale of its main asset.

The firm said a preferred bidder for its Return to Scene (R2S) business had made a non-refundable payment which would help fund the group through May.

The unnamed bidder was selected following detailed discussions with potential buyers.

Last month SeaEnergy announced it was in talks with insolvency advisers.

Trading in its shares were suspended after the Aberdeen-based company said it was making losses and was trying to sell its assets.

SeaEnergy warned in March that new finance at the end of last year had not been sufficient, and that it had cash constraints due to low energy prices.

The company's R2S software helps clients in the offshore energy sector visualise their equipment for remote operations and maintenance.

Exclusivity agreement

In an update on Tuesday, SeaEnergy said it had entered into an exclusivity agreement with the preferred bidder for R2S.

It said: "Under the agreement, the preferred bidder has made a non-refundable payment which will help to fund the group through May.

"The preferred bidder has indicated that it intends to acquire all aspects of the R2S business and it is planned for the disposal to be completed within a short timeframe.

"However, there can be no guarantee that the potential disposal will be completed.

"The directors anticipate that the proceeds of the potential disposal, if received, would be sufficient to repay the bank overdraft, nearly all of the group's secured debt and a proportion of amounts owing to unsecured creditors."

Legal dispute

SeaEnergy has other assets, including two UK royalty assets and an 18.67% interest in Lansdowne Oil & Gas plc.

However, a legal dispute has forced Lansdowne to suspend share trading and to seek new financial support, so the stake is not an asset that could raise funds quickly for SeaEnergy.

Sea Energy added: "Any value for shareholders is likely to depend on the realisation of these assets.

"Further updates will be made in due course and the shares of the company remain suspended from trading pending clarification of the financial position."

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