North Sea Energy Inc.

TSX VENTURE : NUK


North Sea Energy Inc.

May 28, 2014 16:21 ET

North Sea Energy Announces First Quarter 2014 Results

TORONTO, ONTARIO--(Marketwired - May 28, 2014) - North Sea Energy Inc. ("NSE" or the "Company") (TSX VENTURE:NUK) announces its unaudited financial results for the period ended March 31, 2014. 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, 2014 dated May 28, 2014, which have been filed on SEDAR (www.sedar.com).

Highlights and recent events for the three months ended March 31, 2014

  • The Company is focused on its exploration and appraisal assets and is pleased with the upside potential within the targeted portfolio as highlighted by the recent Deloitte report (see press release dated May 2, 2014). NSE continues to maintain strong relationships with its joint venture partners.
  • On January 3, 2014, the Company issued 763,636 shares to EnCounter Oil Limited ("EnCounter") at $0.11 per share pursuant to its subsidiary's joint-bidding agreement between EnCounter and North Sea Energy (UK No2) Limited for the purpose of obtaining North Sea UKCS licences.
  • In February, 2014 the Company signed an agreement with Ithaca and Dyas, whereby under the terms of the Agreement, NSE UK agreed to withdraw from the Jacky Field (P.1392, Block 12/21c), effective December 31, 2013. The Agreement settled all outstanding issues and released the Company of all future costs including decommissioning liabilities from the effective date. By withdrawing from the field, the Company significantly reduced its overall liabilities.
  • The Company reduced its general and administrative (G&A) costs by 48% during the three months ended March 31, 2014 compared to the three months ended March 31, 2013 (Q1 2014; $257,967; Q1 2013: $491,889).
  • Net loss during the three months ended March 31, 2014 decreased by 64% compared to the net loss incurred during the three months ended March 31, 2013 (Q1 2014: $(345,555); Q1 2013: $(951,014)).
Selected Quarterly Information
As at and for the three months ended
March 31, 2014
(Unaudited)
CAD ($)
(except per
share data)
March 31, 2013
(Unaudited)
CAD ($)
(except per
share data)
Assets 4,026,550 19,956,011
Long-term liabilities 3,590,987 4,950,794
Shareholders' Equity (2,211,732 ) 11,679,388
Revenues 1,270 1,092,335
Loss before income tax expense (345,555 ) (951,014 )
Net loss (345,555 ) (951,014 )
Total comprehensive loss for the period (442,854 ) (933,657 )
Basic and diluted net loss per share (0.0058 ) (0.0162 )

Subsequent events

  • Subsequent to the period end, the Company signed a Joint Bidding Agreement for the 28th UKCS Licensing Round. The results are expected in the second half of 2014.
  • On May 2, 2014, the Company announced the results of an independent "Economic Assessment of Blocks 13/24c and 13/25 (Bagpuss and Blofeld), North Sea, United Kingdom". This report issued by Deloitte LLP ("Deloitte") on April 30, 2014, utilized the resource and geologic information developed by Senergy (GB) Limited ("Senergy") on June 25, 2013 with an effective date of May 30, 2013. (Please refer to the Company's press release issued on June 27, 2013 for discussion on the risks and level of uncertainty associated with recovery of the resources, the significant positive and negative factors relevant to the estimate of the resources.). Deloitte's economic assessment of the Bagpuss and Blofeld prospects indicates that, on a cumulative basis, the Best, Mean, and High case resource estimates are commercial under the assumed development, pricing, and cost scenarios, yielding after-tax internal rates of return of approximately 18, 28, and 51 percent, respectively.

About North Sea Energy Inc.

North Sea Energy Inc. (TSX VENTURE:NUK) 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 Bagpuss and Blofeld (blocks 13/24c and 13/25), Norfolk (blocks 12/16b and 12/17b), Cloud (block 14/29b), Del Monte (block 19/3) and Golden Phoenix (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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