North Sea Energy Inc.
TSX VENTURE : NUK

North Sea Energy Inc.

August 28, 2015 16:52 ET

CORRECTION FROM SOURCE: North Sea Energy Announces Second Quarter 2015 Results

TORONTO, ONTARIO--(Marketwired - Aug. 28, 2015) - This release corrects and replaces the release sent for North Sea Energy Inc. on August 28, 2015 at 4:10 PM ET. The headline erroneously referred to the first quarter; it should have referred to the second quarter, and a reference to June 30, 2014 in the Selected Quarterly Information was corrected to June 30, 2015. The complete and corrected release follows.

North Sea Energy Inc. ("NSE" or the "Company") (TSX VENTURE:NUK) announces its unaudited financial results for the period ended June 30, 2015. The summary of the selected financial information should be read in conjunction with the Company's Condensed Interim Consolidated Financial Statements (Unaudited) and the related Management Discussion and Analysis for the quarter ended June 30, 2015 dated August 28, 2015, which have been filed on SEDAR (www.sedar.com).

Highlights and recent events for the three months ended June 30, 2015:

  • NSE continued to reduce its general and administrative (G&A) costs by 43% during the three months ended June 30, 2015 compared to the three months ended June 30, 2014 (Q2 2015; $107,732; Q2 2014: $249,506).
  • Following the Operational and Technical Committee meeting held in Aberdeen, Scotland on June 10th, 2015, the Company has been advised by Premier Oil UK Limited ("Premier"), the operator, that the joint venture is working towards a spud date for the Bagpuss well, located in block 13/24c of the UK North Sea, in H1 2016. Both Premier and Maersk Oil UK Limited ("Maersk") are committed to drilling the Bagpuss well, subject to Oil and Gas Authority UK ("OGA") and final internal approvals. A semi-submersible rig will be used and options to contract the rig are under evaluation to optimise costs. The Company's costs pertaining to the drilling of the initial Bagpuss Prospect well are 100% funded through its farm-in agreement with Maersk, subject to a cap, as are 50% of NSE's costs of a Bagpuss subsequent well, should one be drilled, also subject to a cap.
  • The $3,800,000 Convertible debenture was reclassified to reverse a portion of the interest and accretion accrued, with the remaining balance allocated to equity. The Amending Agreement, signed on November 26, 2014, stipulates that interest shall not accrue from May 22, 2015 on the principal amount and that the principal amount shall not be payable if a financing (as defined in the Amending Agreement) was not received and closed by the July 1, 2015 deadline. In addition, any previously deferred interest shall be cancelled. The Company is under no obligation to repay the Debentures. The conversion option available to the Mr. Karel van de Velde, the holder, and the Company are subject to an Undertaking Agreement signed at the time of issuance of the Debentures. The UA restricts the convertibility of the Debentures to circumstances where, after conversion, the holder would not hold more than 10% of the issued and outstanding common shares of the Company. The holder's latest public filing indicates that he has already personally acquired 20.3% of the issued and outstanding common shares of the Company.

Selected Quarterly Information:

For the three months ended For the six months ended
June 30, 2015
(Unaudited)
CAD ($)
(except per
share data)
June 30, 2014
(Unaudited)
CAD ($)
(except per
share data)
June 30, 2015
(Unaudited)
CAD ($)
(except per
share data)
June 30, 2014
(Unaudited)
CAD ($)
(except per
share data)
Revenues 27 672 49 1,942
Profit/(loss) before income tax 179,837 (564,018 ) (40,217 ) (909,579 )
Net profit/(loss) 179,837 (564,018 ) (40,217 ) (909,579 )
Total comprehensive profit/(loss) 308,059 (477,133 ) (581,152 ) (919,993 )
Basic net profit/(loss) per share 0.003 (0.010 ) (0.001 ) (0.015 )
Diluted net profit/(loss) per share 0.002 (0.010 ) (0.001 ) (0.015 )
As at
June 30,
2015
(Unaudited)
CAD ($)
December 31,
2014
(Unaudited)
CAD ($)
June 30,
2014
(Unaudited)
CAD ($)
Assets 2,259,738 2,622,833 3,370,672
Long-term liabilities 32,222 3,730,228 3,537,981
Shareholders' Equity (5,423,394 ) (8,168,546 ) (2,688,871 )

The above noted financial data should be read in conjunction with the period ended June 30, 2015 condensed interim consolidated financial statements. The condensed interim consolidated financial statements are prepared in accordance with International Accounting Standards ("IAS") 34 - Interim Financial Reporting.

About NSE:

NSE is an oil and gas company that holds a portfolio of high impact interests focused on the Moray Firth in the offshore UK North Sea. These interests include the Bagpuss and Blofeld prospects (blocks 13/24c and 13/25), Norfolk prospects (blocks 12/16b & 12/17b), Del Monte (blocks 19/2 & 19/3) and Golden Phoenix leads (block 18/10a).

Forward-looking statements

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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