Target milestone triggers £500,000 payment to owners of 3D imaging firm Return to Scene
Offshore services firm SeaEnergy Plc has announced it will pay another £500,000 to the owners of its 3D imaging firm Return to Scene (R2S) Ltd after the acquisition hit revenue targets ahead of schedule.
SeaEnergy acquired R2S in August of last year for an initial cash sum of £5 million with a further cash payment of £500,000 due in March if R2S met revenue targets.
SeaEnergy said today R2S met its revenue target for the six months to February 2013, ahead of schedule, and “despite delays to a number of offshore projects, caused by restrictions on platform bed space and the reduced availability of helicopter seats, following recent incidents”.
Aberdeen-based SeaEnergy will also pay a further £4.6 million in March 2014, subject to R2S achieving set profit targets.
R2S initially focused on developing 3D imaging services to the police and court services to model crime scenes, but then moved into modelling for the oil and gas sector.
Its imaging technology is used to create three dimensional modelling of offshore oil and gas installations to index and manage maintenance and performance data.
SeaEnergy said in a market update today, R2S “is close to securing new contracts in the North Sea, and internationally, from both existing and new customers”.
It added: “Platform operators are increasingly recognising that in addition to enhanced safety, having their installations captured by the R2S software gives them the ability to reduce the number of platform visits, cutting helicopter trips, freeing up bed spaces and ultimately reducing their operating costs.”
The trading update from SeaEnergy also adds its recently launched consultancy service is “already covering its direct costs” and the group plans to expand this operation in 2013.
SeaEnergy added it was invited to participate “in the first of what we expect to be a number of tenders for offshore wind farm service operation vessels” late last year, and is working to secure a joint venture with a larger partner.
The group said a joint venture “will both allow us to participate in several such tenders simultaneously and spread the capital cost of any vessels for which we successfully secure charters”.
SeaEnergy said its 21 per cent stake in Lansdowne Oil & Gas plc , the last of its oil and gas assets retained following its shift to renewable energy and services, is currently valued at £15.9 million, which the group said was driven by exploration firms successful Barryroe appraisal well.
Commenting on the update, SeaEnergy's chairman, David Sigsworth, said: "I am very pleased that we are able to report significant delivery across all of the strands of the strategy we set out less than a year ago, and we are looking forward to updating the market on our further progress throughout 2013."