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SeaEnergy PLC (SEA)

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Wednesday 13 April, 2016

SeaEnergy PLC

Statement re: Lansdowne Oil and Gas announcement

RNS Number : 0917V
SeaEnergy PLC
13 April 2016





Statement re: Lansdowne Oil and Gas announcement



SeaEnergy (AIM: SEA) notes today's further announcement by Lansdowne Oil and Gas plc, a company in which SeaEnergy holds an 18.67% interest, the text of which is set out below:


"Lansdowne Oil & Gas ("Lansdowne" or "the Company"), the independent oil and gas company focused on offshore Ireland, notes Providence Resources release today regarding the Court of Appeal Ruling which stated:


'Providence Resources provides notification regarding the litigation between Providence and Transocean Drilling U.K. Limited ("Transocean"), a subsidiary of Transocean Ltd.


'The case relates to certain costs claimed by Transocean against Providence regarding the use of the semi-submersible drilling unit, the Arctic III, in 2011/12 on Providence's Barryroe oilfield, offshore Ireland. The total claim, which was made by Transocean in 2012, amounted to approximately US$19 million.  Providence, in defence of its position, counterclaimed against Transocean. The Hon. Mr Justice Popplewell, in his judgment of 19 December 2014 in the Commercial Court in London, found that Transocean was in breach of contract for failing to maintain various parts of its sub-sea equipment and that Transocean was not, therefore, entitled to certain amounts reflecting Transocean's own day rate remuneration.


'As previously disclosed, Transocean sought and was granted the right to appeal one aspect of Mr Justice Popplewell's judgment, which specifically related to whether Providence was entitled to set off certain spread costs against Transocean's claim.  The appeal of this aspect of the judgment turned on the Court of Appeal's interpretation of the wording of the consequential loss clause in the rig contract (Mr. Justice Popplewell had found that Providence was entitled to set off certain spread costs). The appeal was heard in March 2016


'In a judgment handed down today, 13 April 2016, the Court of Appeal has granted Transocean's appeal on the set off point.  All other aspects of Mr Justice Popplewell's judgment remain in force, including the finding that Transocean was in breach of contract.


'Providence estimates the financial implications of the Court of Appeal's judgment will result in the payment of approximately US$7 million (excluding interest and costs) to Transocean.  The parties and their legal advisors are currently in the process of agreeing the final amount payable to Transocean (together with any costs and interest thereon) and the terms of payment.  Accordingly, at this time the Company cannot confirm the final amount payable to Transocean, nor the terms or timing of such payment.'


"Lansdowne, through its 20% interest in the Barryroe Field, will need to raise capital to meet any liabilities arising from the court ruling and for its on-going working capital requirements.  As a result, the Company has requested the continued suspension of its shares from trading on AIM pending clarification of the Company's financial position.  In the meantime, the Company is in active discussions with its financial advisors and current debt provider with the objective of ensuring that the Company has the appropriate financial resources to satisfy its obligations under the Barryroe Joint Venture Agreement and meet its on-going working capital requirements.


"On the basis of this issued judgment, Lansdowne will now make a provision for its net amount in its Financial Accounts for the year ending 31 December 2015.


"Further updates will be issued in due course."



For further information contact:


Steven Bertram

Finance and Commercial Director

Tel: +44 1224 748480


Claire Fleming

Corporate Communications & Research Manager

Tel: +44 7880 358920


Tim Feather/Liam Gribben

Nominated Adviser and Broker

WH Ireland Limited

Tel: 0113 394 6600





About SeaEnergy PLC:


SeaEnergy PLC is an innovation-led offshore energy services business, based in Aberdeen, Scotland

and listed on the London Stock Exchange's AIM Market.


R2S Visual Asset Management system (delivered by SeaEnergy subsidiary Return To Scene) provides photographic capture and three dimensional modelling of oil & gas installations, linking these images to asset management databases for major international oil operators, allowing them to improve the performance of their assets whilst providing operational efficiencies.


R2S Forensic is an interactive software system that enhances planning, investigation and collaboration through the power of visual imagery. The R2S Forensic system has revolutionised the presentation of crime scenes. It creates an information rich walk through environment which seamlessly links all relevant technical data.


Return To Scene was acquired by SeaEnergy in August 2012.


This information is provided by RNS
The company news service from the London Stock Exchange

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