Odyssey Marine Exploration Inc (OMEX)

[Getitgogone]

Project Sailfish nets a $10 million shipwreck discovery

A shipwreck discovery process five years in the making could lead to a $10 million cargo yield for Endurance Exploration Group LLC.

Endurance (OTCQB: EXPL), based in Clearwater, identified a wreck believed to be that of the S.S. Connaught, a mid-19th century steamship lost off the coast of New England, reportedly with a cargo of gold coins.

The company has asked a federal judge to take jurisdiction over the matter, appoint Endurance substitute custodian of the wreck and allow it to salvage the wreck and its cargo. Micah Eldred, CEO of Endurance, hopes to navigate through the court process by spring 2015, which coincides with the time Endurance would start recovery of the cargo.

Endurance is one of several shipwreck discovery firms; at least three of them based in the Tampa Bay area, including Seafarer Exploration Corp. (OTCQB: SFRX) and Odyssey Marine Exploration Corp. (NASDAQ: OMEX), the oldest and arguably best-known. The growing availability of “off the shelf” technology developed to aid the off-shore oil and gas industry, as well as more equipment available for charter, so that a company does not have to build and maintain its own equipment, allows companies such as Endurance to keep costs down and provide a return to shareholders, Eldred said.

Endurance, founded by Eldred five years ago, spent two-and-a-half years building research files on shipwrecks it would make sense to look for that met its criteria: a merchant ship, not owned by a sovereign country, with documented cargo, and navigational data.

Endurance started the search and survey process in summer 2013, and spent three months off the coast of New England, surveying an 800-square-mile area and identifying 20 shipwrecks, although most did not meet the criteria. The company returned to the search area earlier this summer and — under the code name, Project Sailfish — eventually focused on the Connaught, which sank in 1860 on only its second voyage.

While it’s difficult to know the exact value of the cargo, the ship reportedly was loaded with gold coins worth about 10,000 British pounds at the time. While the mix of coins is not known, Eldred said they could be worth $10 million at today’s valuations. And, while all the 467 passengers and 125 crew were rescued, they may also have left valuables behind, Eldred said.

Using a remotely-operated vehicle, the company was able to photograph the wreckage ( see photos). "It was the first time the wreck had been seen by anyone in 150 years," said Eldred, who was on the last inspection mission. "When the robot got to the paddlewheel, it was amazing to see."

Endurance is one of several companies Eldred heads. He’s also CEO of Endeavor Cooperative Partners LLC and its subsidiaries, Spartan Securities Group, Island Capital Management and Endeavour Insurance Partners. Island Stock Transfer, a division of Island Capital Management LLC, is the transfer agent for dozens of smaller publicly traded companies.

http://www.bizjournals.com/tampabay/blog/morning-edition/2014/10/project-sailfish-nets-a-10-million-shipwreck.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+bizj_tampabay+(Tampa+Bay+Business+Journal)