Hey all thanks for the comments! The Ocean material is completely custom made although not finished yet (foam texture and fine detail still need to be added). The bouyancy is based on the market place addon called “physical water surface”. I’ve been in close contact with the maker through email and he has provided a marvelous amount of support. So definitely go check out his addon, it’s very user friendly and well made.
Some basic gameplay is almost ready. You can already take the wheel of ships and sail them around with other players on board. And melee combat is almost done. When the melee combat is finished we will make a small gameplay video to show you all where we are at.
After that we will be adding cannons you can fire, ship damage, repairing and ranged combat. This should be finished in the next few weeks if things go as planned. Stay tuned! 
Here are some small teaser previews:
new player models and animations
ship controlling
first person run / jump and attack animations