North Sea Energy Inc.

TSX VENTURE : NUK


North Sea Energy Inc.

August 26, 2014 17:23 ET

North Sea Energy Announces Second Quarter 2014 Results

TORONTO, ONTARIO--(Marketwired - Aug. 26, 2014) - North Sea Energy Inc. ("NSE" or the "Company") (TSX VENTURE:NUK) announces its unaudited financial results for the period ended June 30, 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 June 30, 2014 dated August 26, 2014, which have been filed on SEDAR (www.sedar.com).

Highlights and recent events for the three months ended June 30, 2014

  • On May 2, 2014, NSE obtained the results of an independent "Economic Assessment of Blocks 13/24c and 13/25 (Bagpuss and Blofeld), North Sea, United Kingdom"1. The potential economics of the prospects on a Low, Best, Mean and High cases on a before tax basis discounted by 10% are US$(65.30) million, US$311.7 million, US$689.51 million and US$1,842.35 million respectively net to NSE.
  • NSE continued to reduce its general and administrative (G&A) costs by 47% during the three months ended June 30, 2014 compared to the three months ended June 30, 2013 (Q2 2014; $249,506; Q2 2013: $465,663).
  • NSE entered into a Joint Bidding Agreement for the 28th UKCS Licensing Round.

SELECTED QUARTERLY INFORMATION

As at
June 30, December 31, June 30,
2014 2013 2013
(Unaudited) (Unaudited) (Unaudited)
CAD ($) CAD ($) CAD ($)
Assets 3,370,672 4,932,541 19,313,066
Long-term liabilities 3,537,981 3,497,383 5,010,564
Shareholders' Equity (2,688,871) (1,852,878) 11,169,789

1 The 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.

For the three months ended For the six months ended
June 30, June 30, June 30, June 30,
2014 2013 2014 2013
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
CAD ($) CAD ($) CAD ($) CAD ($)
(except per (except per (except per (except per
share data) share data) share data) share data)
Revenues 672 221,987 1,942 1,314,322
Loss before income tax (564,018) (566,032) (909,627) (1,517,046)
Net loss (566,018) (566,032) (909,627) (1,517,046)
Total comprehensive loss (477,133) (509,599) (920,041) (1,443,256)
Basic and diluted net loss per share (0.0095) (0.0097) (0.0153) (0.0259)

The above noted financial data should be read in conjunction with the period ended June 30, 2014 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 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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