Exclusivity Agreement and Repayment Terms of Existing Loan Facility Extended (UK)

SeaEnergy plc announces today that it has reached agreement with a consortium of major European energy companies (“the Consortium”) to grant a period of exclusivity to negotiate the sale (“the Transaction”) of the Company’s 80.13% interest in its subsidiary SeaEnergy Renewables Limited (“SERL”).

Due diligence is already in progress and the agreement contemplates the signature of formal documentation by early June when the Company would make a further announcement. It is then expected that, in accordance with the AIM rules, the Company would convene a general meeting to obtain shareholder approval of the Transaction with the intention of completing the transaction at the end of June. A member of the Consortium has agreed to advance loan facilities to assist the Company and these loans would be repayable out of the proceeds of any sale.

Meanwhile the Company has agreed a further extension to the terms of an existing loan facility until the earlier of 30 June 2011 or completion of the Transaction. The facility is provided by LC Capital Master Fund, Ltd (“LC”), a major shareholder in SeaEnergy and follows an announcement on 31 March 2011 that LC had agreed an extension to 30 April 2011. At this time £370,000 remains to be drawn of the £4.3 million facility provided by LC.

While there can be no certainty that the current negotiations will result in a successful completion of the Transaction, these negotiations are at an advanced stage.

(seaenergy-plc)

[mappress]

Source: seaenergy-plc, May 04, 2011