North Sea Energy Inc.
TSX VENTURE : NUK

North Sea Energy Inc.

August 28, 2012 16:15 ET

North Sea Energy Announces Second Quarter 2012 Results

TORONTO, ONTARIO--(Marketwire - Aug. 28, 2012) - North Sea Energy Inc. ("NSE" or the "Company") (TSX VENTURE:NUK) announces its unaudited financial results for the period ended June 30, 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 June 30, 2012 dated August 28, 2012, which have been filed on SEDAR (www.sedar.com).

Highlights for the period ended June 30, 2012

  • Norfolk budget approved - NSE's portion of the commitment is $302,500 (£189,220)

  • NSE participates in the 27th Seaward Licensing Round on seven applications

  • NSE receives significant increase on Badger (Block 12/30) prospective resources

  • Cash on hand $4,437,569 (December 31, 2011, $5,389,699)

  • Working capital $2,072,882 (December 31, 2011, $3,833,599)

  • Q2 2012 (Loss) earnings before interest, taxes, depreciation and amortization (EBITDA(1), a non-IFRS measure) $(198,575) vs Q2 2011 EBITDA of $(515,742); H1 2012 EBITDA $42,231 vs H1 2011 $110,735

(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 and non-recurring legal fees).

Selected Quarterly Information

As at
June 30,
2012
(Unaudited)
CAD ($)
December 31,
2011
(Unaudited)
CAD ($)
June 30,
2011
(Unaudited)
CAD ($)
Assets 21,021,456 23,231,776 25,764,622
Long-term liabilities 2,529,555 2,831,221 3,723,042
Shareholders' Equity 15,496,065 17,317,757 19,258,535
Loans payable 1,182,953 1,150,875 1,763,894
For the three months ended For the six months ended
June 30,
2012
(Unaudited)
CAD ($)
(except per
share data)
June 30,
2011
(Unaudited)
CAD ($)
(except per
share data)
June 30,
2012
(Unaudited)
CAD ($)
(except per
share data)
June 30,
2011
(Unaudited)
CAD ($)
(except per
share data)
Revenues 871,983 685,692 2,494,046 2,997,991
Loss before income tax (2,250,458 ) (648,664 ) (2,808,879 ) (641,953 )
Net loss (1,644,458 ) (493,664 ) (1,862,879 ) (432,953 )
Total comprehensive loss (1,560,704 ) (537,109 ) (1,868,150 ) (653,103 )
Basic net loss per share (0.0281 ) (0.0136 ) (0.0318 ) (0.0119 )
Diluted net loss per share (0.0281 ) (0.0136 ) (0.0318 ) (0.0119 )

Significant developments

On April 19, 2012, NSE announced that a 2012 budget and work program for exploration has been agreed on the Norfolk prospect, Block 12/16b (20% working interest) and the Norfolk East prospect, Block 12/17b (20% working interest) following discussions with partners. Both prospects are located in the North Sea. The total budget for 2012 is approximately $1.5 million (£946,100). NSE's portion of the commitment is $302,500 (£189,220).

On May 2, 2012, NSE announced the Company's participation in the 27th Seaward Licensing Round on May 1, 2012, through NSE's wholly owned subsidiary North Sea Energy (UK No2) Limited. NSE has bid with a strategic partner on seven additional applications in the North Sea. Should the Company be successful and be awarded a license, the Company will be committed to pay a success fee.

In addition, the Company announced the appointment of Ian Lisseter as President of the Company's subsidiary, North Sea Energy (UK No2) Limited. Mr. Lisseter is currently Chief Exploration Officer of NSE and the President of Echo Exploration Limited, a wholly owned UK subsidiary of NSE.

On May 15, 2012, the Company announced it has recently received a Prospective Resource Assessment of UK North Sea Block 12/30, "Badger Prospect", issued by Senergy (GB) Ltd. ("Senergy") on May 14, 2012 in accordance with NI 51-101, increasing the Company's resources by approximately 48% on a mid-case basis.

In addition, the Company opened a data room in the London area, UK, in order to facilitate the farming out of its Echo Exploration Limited's Blocks: Badger prospect, Bobcat prospect, Bass prospect and Bluebird discovery and Blackbird prospects. Potential bids are expected before the end of November, 2012.

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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