North Sea Energy Inc.
TSX VENTURE : NUK

North Sea Energy Inc.

May 29, 2012 17:15 ET

North Sea Energy Announces First Quarter 2012 Results

TORONTO, ONTARIO--(Marketwire - May 29, 2012) - North Sea Energy Inc. ("NSE" or the "Company") (TSX VENTURE:NUK) announces its unaudited financial results for the period ended March 31, 2012. 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 March 31, 2012 dated May 29, 2012, which have been filed on SEDAR (www.sedar.com).

Financial highlights for the period ended March 31, 2012:

  • Cash on hand $4,938,368 (December 31, 2011: $5,389,699)
  • Working capital $3,882,914 (December 31, 2011: $3,833,599)
  • Cash flow from operations of $(560,230) (March 31, 2011: $1,620,029)
  • (Loss) earnings before interest, taxes, depreciation and amortization (EBITDA(1), a non-IFRS measure) $(68,258) (March 31, 2011: $626,478)
  • Current liabilities $2,744,351 (December 31, 2011: $3,082,798)
(1) The Company has included in this report certain non-IFRS performance measures, including EBITDA. This measure is not defined under IFRS and therefore should not be considered in isolation or as an alternative to or more meaningful than, net income (loss) or cash flow from operating activities as determined in accordance with IFRS as an indicator of our financial performance or liquidity. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. EBITDA was calculated as income before taxes before interest expense, depreciation and amortization (including impairment charge).

Selected Quarterly Information

As at and for the three months ended
March 31, 2012
(Unaudited)
CAD ($)
(except per share data)
March 31, 2011
(Unaudited)
CAD ($)
(except per share data)
Assets 22,361,829 26,971,554
Long-term liabilities 2,601,161 4,017,272
Shareholders' Equity 17,016,317 19,789,125
Revenues 1,622,063 2,312,299
Income (loss) before income tax expense (558,422 ) 6,712
Net income (loss) (218,422 ) 60,712
Total comprehensive income (loss) for the period (307,447 ) (115,993 )
Basic net income (loss) per share (0.0037 ) 0.0017
Diluted net income (loss) per share (0.0037 ) 0.0014
Loans payable 1,146,514 1,866,462

Significant Developments

On January 4, 2012, The Company announced that it was notified by the UK Department of Energy and Climate Change (DECC) that it, together with its partners, has been awarded three new blocks in the UK North Sea in the 26th Seaward Licensing Round, namely the Norfolk prospect - block 12/16b (20% interest), the Norfolk East lead - block 12/17b (20% interest) and the Badger lead - block 12/30 (50% interest). NSE holds its interest in the Norfolk prospect and the Norfolk East lead through its wholly owned subsidiary, North Sea Energy (UK No2) Limited. The Company's interest in the Badger lead is held through an additional wholly owned subsidiary, Echo Exploration Limited.

On January 16, 2012, Premier Oil plc ("Premier") completed the acquisition of Encore Oil plc. As a result, Premier is now partner on 95% of NSE's exploration resource estimates. Premier is a publicly traded company on the London Stock Exchange with a market cap in excess of £2 billion.

On January 26, 2012, NSE announced that it has hired Senergy GB Limited ("Senergy") to commence additional work on its Bobcat Prospect (Block 13/28b), Bass Prospect (Block 22/5c), Badger Prospect (Block 12/30), Bluebird Discovery and Blackbird Prospects (Block 15/21d). Senergy operates across the globe in many energy sectors delivering technical and operational solutions to help their clients realise the value from their assets.

About North Sea Energy Inc.

NSE (TSX VENTURE:NUK) is a UK-focused oil and gas exploration and production ("E&P") company listed on the TSX Venture Exchange. NSE is producing light oil from the Jacky field, located in the Inner Moray Firth off the Scottish coast and has acquired an interest in nine blocks in the North Sea.

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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