Investor Curtis claims SeaEnergy undervalued

Published on Sunday 29 January 2012 00:00

PAUL Curtis, the wealthy private investor who has built a reputation for spotting stock market bargains, believes Aberdeen-based SeaEnergy’s cash pile and the value of its stake in a North Sea oil firm means it is significantly undervalued.

Curtis has held a stake in the business – which has just parted company with founder Steve Remp – for several months, but had to reveal his identity last week when his holding went above the 3 per cent disclosable interest level.

The Surrey-based investor, who has also recently emerged as holding a sizeable stake in Aberdeen-based minnow Deo Petroleum, estimates SeaEnergy’s cash reserves are worth some 30p a share, with its 24 per cent stake in Lansdowne Oil & Gas adding around 15p at current market levels – in total more than 50 per cent higher than SeaEnergy’s share price.

Shares in Irish-registered Lansdowne, whose operational HQ is at Westhill, in Aberdeenshire, have risen by 90 per cent over the past year and positive results from an appraisal well could see further gains.

Alongside last week’s announcement of Remp’s departure and change in strategy to focus on providing services for the offshore renewable industry, SeaEnergy said it will update shareholders on future plans and “the results of its considerations on a return of capital”.

Private investors have been speculating on bulletin boards that the company may look to dispose of its stake in Lansdowne or distribute the shares to investors. Curtis believes the recruitment of a new chief executive could also spark a re-rating for the shares.

“At a time when cash is king, the right man in charge of a pile of cash should be able to do something with it,” he pointed out.

Last October analysts from Edison had valued SeaEnergy’s cash in the bank and the value of its holding in Lansdowne at 42p a share. Since Remp’s departure shares in the company have risen by 10 per cent.

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