Odyssey Provides ``Black Swan'' Shipwreck Information Update
22 May 2007 - 12:39AM
Business Wire
Since the announcement by Odyssey Marine Exploration, Inc.
(AMEX:OMR) of the recovery of over 500,000 coins from the shipwreck
code-named �Black Swan�, intense international media coverage has
led to many questions that the Company would like to address. In
addition to the following questions and answers, additional
information on the shipwreck can be accessed in the �Black Swan
Question and Answer� section of Odyssey�s website at
www.shipwreck.net, or a copy may be obtained by contacting the
Company. 1. It has been widely reported that this shipwreck could
be worth up to $500 million. What is the Company�s position on
this? The Company has not estimated the total potential value of
the shipwreck, other than to estimate on a preliminary basis a wide
range of potential retail prices based on the coins that have been
conserved to date. What we know is that we have recovered over
500,000 silver coins weighing over 17 tons, along with some gold
coins and other artifacts. After conservation of the first 6,000
coins, we requested that a numismatist and one of the world�s most
experienced coin marketers, Nick Bruyer, inspect the coins and
provide an opinion of the retail pricing that we could expect from
the collection. Based on Mr. Bruyer�s opinion, Odyssey reported
that we expected the retail pricing of the silver coins to range
from several hundred to four thousand dollars per coin. This wide
range of prices would depend on the condition, origin and date of
the individual coins. We understand that in a separate interview
with a reporter, Mr. Bruyer provided his opinion that the mean
retail price of the coins could be approximately $1,000 based on
the small sample of coins that he inspected. This was reported as a
potential $500 million retail value for the coins, which explains
where that figure originated. Odyssey�s position is that until all
the coins are conserved, documented and graded, it is impossible to
know what the entire collection would bring at retail. Based on the
coins that have been conserved to date and that he has been able to
inspect, we are comfortable with Mr. Bruyer�s opinion that coins
from the �Black Swan� will bring from several hundred to four
thousand dollars per coin retail. These are estimates that could
change significantly when the rest of the coins are conserved and
do not include the cost of marketing and sales, so actual revenue
to Odyssey would be much lower than retail sales prices. For more
information on the marketing and pricing of coins, see questions 2,
8 and 12 in the �Black Swan Q and A�. 2. There have been reports
that the �Black Swan� is a number of different shipwrecks,
including HMS Sussex and the Merchant Royal. Are any of these
reports correct? We can confirm that the �Black Swan� is not HMS
Sussex, and that the �Black Swan� was not found in waters anywhere
near the shipwreck believed to be HMS Sussex. Beyond that, we
cannot confirm the identity of the shipwreck because we are not
certain ourselves. The site is in an area in which a number of
Colonial-era Shipwrecks were believed to be lost. The �Black Swan�
bears characteristics of one shipwreck in particular, but some of
the evidence gathered to date is inconsistent with our research, so
we want to be sure of the identity before we announce it. 3. It has
been reported that the Spanish Government is engaging in a �probe�
of Odyssey because it is �suspicious� that we have not publicized
more information about the shipwreck. Is this true? We have no
knowledge of any such inquiry, and would expect that we would have
been the first ones contacted if there was one. In our experience
with the Spanish Government, with whom we have had a very cordial
relationship for many years, we would have been informed directly
or through the US or UK embassy of any outstanding issues relating
to Odyssey�s operations. During the past few days, we have also
seen many fanciful media reports from Spain with absolutely no
substance in reality. Unfortunately, some of these wild allegations
would logically cause concern to the Spanish Government. We
anticipate presenting the Spanish Government with an official
account of our activities in order to assure them that many of
these media reports relative to the �Black Swan� are pure fiction.
We have stated clearly that the recovery was conducted in
conformity with Salvage Law and the Law of the Sea Convention,
beyond the territorial waters or legal jurisdiction of any country.
We do not believe that the recovery is subject to sovereign
immunity by any nation pursuant to the Law of the Sea Convention.
The coins were brought into the United States with a valid export
license granted by the country from which they were exported, and
imported legally pursuant to US Law. There was no point at which
any aspect of the �Black Swan� operation was within the
jurisdiction of Spanish authorities, and we will be pleased to
provide proof of that fact to the Spanish Government if requested
officially. 4. What about the claim that the Spanish Government has
now asked the �Guardia Civil� marine patrol to monitor Odyssey�s
activities? The Spanish Guardia Civil has always monitored
Odyssey�s ships in Spanish Territorial waters. When operating in or
near Spanish Territorial waters, we report our operational plans
and movements to the Guardia Civil marine patrol before we send our
ships to sea. They are able to monitor all our activities visibly
with their patrol boats and through radar, so it is illogical to
suggest that we have conducted any illicit operations in Spanish
territorial waters. 5. What happens, if you finally determine the
identity of the �Black Swan� and establish that the UK, Spain, any
other country or even individuals may have rights to the shipwreck?
If we are able to confirm that some other entity has a legitimate
legal claim to this shipwreck when - and if - the identity is
confirmed, we intend to provide legal notice to any and all
potential claimants. Even if another entity is able to prove that
it has an ownership interest in the shipwreck and/or cargo and that
they had not legally abandoned the shipwreck, Odyssey would apply
for a salvage award from the Admiralty Court. In cases such as
this, salvors are typically awarded up to 90% of the recovery. We
do believe that most shipwrecks that we recover, including the
�Black Swan�, will likely result in claims by other parties. Many
will be spurious claims, but we anticipate that there might be some
legitimate ones as well. In the case of the �Black Swan�, it is the
opinion of our legal counsel that even if a claim is deemed to be
legitimate by the courts, Odyssey should still receive title to a
significant majority of the recovered goods. 6. Why is Odyssey
being so �secretive� about the �Black Swan?� Based on past
experience with other shipwrecks, we have found that putting out
information about the identity of shipwrecks into the public before
we are certain of the identity results in wild speculation about
values, ownership rights and scores of other issues. We also
believe that it would be an added risk factor to disclose the
location of the site because we have publicly stated that we have
left a large number of artifacts on the site, and the security risk
is obvious. 7. Why haven�t you determined the identity of the
shipwreck yet? When will you announce the identity? Determining the
identity of a shipwreck is complicated. For example, it would be
possible to find a French-built ship, with English cannons, Dutch
pottery, Chinese porcelain, Turkish pipes, and Venetian trading
beads that had been captured by pirates before it sank. Proving the
shipwreck�s identity in that case might prove very difficult, if
not impossible depending on the research available. In the best
interest of all concerned,�we will follow our often-stated policy
of announcing what we know about the identity of a shipwreck, only
after it's confirmed by research. 8. There have been reports of a
partnership between Odyssey Marine Exploration and the Disney
organization. Are these true? We can confirm that Odyssey and the
Disney organization have recently entered into a relationship on a
number of projects, and that the two companies are in discussions
relative to some new partnership opportunities. We have immense
respect for Disney and believe that a combination of Odyssey�s
authentic deep-ocean adventures coupled with Disney�s
story-telling, film-making, television and marketing capabilities
will reap benefits for both companies, while providing the public
with an unprecedented opportunity to enjoy the thrill of deep-ocean
exploration. About Odyssey Marine Exploration Odyssey Marine
Exploration is a Publicly Traded US Company with several shipwreck
projects in various stages of development throughout the world.
Additional information about Odyssey, the �Black Swan� project, and
the Company�s other activities is available at www.shipwreck.net.
For additional information, please contact Natja Igney, Odyssey�s
Manager of Corporate Communications, at 813-876-1776 ext 2553.
Odyssey Marine Exploration believes the information set forth in
this Press Release may include "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Act of 1934. Certain factors that could cause
results to differ materially from those projected in the
forward-looking statements are set forth in "Risk Factors" in the
Part I, Item 1A of the Company's Annual Report on Form 10-K for the
year ended December 31, 2006, which has been filed with the
Securities and Exchange Commission.
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