North Sea Energy Inc.
TSX VENTURE : NUK

North Sea Energy Inc.

November 22, 2013 18:45 ET

North Sea Energy Announces Third Quarter 2013 Results

TORONTO, ONTARIO--(Marketwired - Nov. 22, 2013) - North Sea Energy Inc. ("NSE" or the "Company") (TSX VENTURE:NUK) announces its unaudited financial results for the period ended September 30, 2013. 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 September 30, 2013 dated November 21, 2013, which have been filed on SEDAR (www.sedar.com).

Highlights for the period ended September 30, 2013

  • In August, 2013, the Company secured a farm-in agreement with Maersk Oil North Sea UK Limited on the Bagpuss and Blofeld prospects, Blocks 13/24c and 13/25, while Premier Oil farmed into the same prospects through EnCounter Oil and Groliffe. The new working interests are as follow: North Sea Energy - 15%, Maersk Oil - 25%, Premier Oil - 37.5%, EnCounter Oil - 15%, Groliffe - 7.5%
  • Revenue doubled quarter over quarter from Q2 2013 to Q3 2013 to $455,209 for the three months ended September 30, 2013 compared to $221,987 for the three months ended June 30, 2013
  • During the three months ended September 30, 2013, Jacky produced 36,755 bbls (net to NSE 3,676 bbls).
  • General and administrative expenses reduced by 74% ($123,308 in Q3 2013, compared to $465,663 in Q2 2013
  • Cash on hand of $3,444,647 at September 30, 2013 (December 31, 2012, $6,246,200)

Selected Quarterly Information

As at
September 30,
2013 (Unaudited)
CAD ($)
December 31, 2012 (Unaudited)
CAD ($)
September 30,
2012 (Unaudited)
CAD ($)
Assets 15,603,622 20,695,048 19,289,068
Long-term liabilities 7,348,127 4,772,424 2,079,840
Shareholders' Equity 5,729,672 12,474,196 14,744,889
For the three months ended For the nine months ended
September 30,
2013 (Unaudited)
CAD ($)
(except per share data
) September 30,
2012 (Unaudited)
CAD ($)
(except per share data
) September 30,
2013 (Unaudited)
CAD ($)
(except per share data
) September 30,
2012 (Unaudited)
CAD ($)
(except per share data
)
Revenues 455,209 1,041,876 1,769,531 3,535,922
Loss before income tax (5,372,270 ) (713,914 ) (6,889,316 ) (3,522,794 )
Net loss* (5,372,270 ) (624,914 ) (6,889,316 ) (2,487,794 )
Total comprehensive loss (5,440,117 ) (751,175 ) (6,883,373 ) (2,619,326 )
Basic net loss per share (0.0918 ) (0.0107 ) (0.1177 ) (0.0425 )
Diluted net loss per share (0.0918 ) (0.0107 ) (0.1177 ) (0.0425 )
* includes impairment of Terry prospect in the amount of $3,987,598 during the three months ended September 30, 2013

Jacky Field Operational Update

The Operator of the Jacky field (block 12/21), Ithaca Energy Inc., has notified the Company that the Beatrice Alpha to Bravo water injection pipeline, used to provide pressure support to the Jacky reservoir, has failed. A full investigation into the exact cause of the leak was not possible due to weather and dive vessel time constraints. Repair options are being considered and a further update will be issued once a decision has been made. The Jacky field will continue to be produced, but it is likely that production will decrease as the pressure falls. The Operator is still evaluating the impact on the production forecast for 2014.

Cloud Prospect (Block 14/29b)

EnCounter Oil (60% working interest) is hosting a joint data room with NSE (40% working interest) in order to facilitate the potential farm-out of the Cloud prospect, which is currently being reviewed by a number of parties.

The Cloud prospect, awarded in the 27th licencing round, is located in the Moray Firth, north of the Goldeneye field, within Upper Jurassic gravity flow sands at depths of between 6,900 and 7,675 ft. It is updip of well 14/29-1 which encountered a 475 ft sequence of good quality middle and early Volgian Claymore sands.

PROSPEX 2013

The Company will be exhibiting at the upcoming PROSPEX exhibition from December 11-12, 2013 in London, UK. The aim of PROSPEX is to provide a venue for announced "Promote Licensees" and oil and gas companies to market prospects and meet with potential investors to facilitate the "deal making" process.

North Sea Energy will be showcasing the Norfolk and Norfolk East (blocks 12/16b and 12/17b) and Cloud (block 14/29b) prospects at the exhibition.

Venue: Business Design Centre, Islington

NSE Booth Number: 62

For more information about the exhibition, please visit http://www.pesgb.org.uk/pages/news-and-events/events/prospex.

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 plays focused on the Moray Firth in the offshore UKCS. These plays include Bagpuss and Blofeld (blocks 13/24c and 13/25), Norfolk and Norfolk East (blocks 12/16b and 12/17b), and Cloud (block 14/29b).

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. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to oil reserves and resources and future revenues. 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. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada, the United States, UK and globally; industry conditions, including fluctuations in the prices of oil and natural gas; governmental regulation of the oil and gas industry, including environmental regulation; unanticipated operating events or performance which can reduce production or cause production to be shut in or delayed; failure to obtain industry partner and other third party consents and approvals, if and when required; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, drilling, processing and transportation problems; changes in tax laws and incentive programs relating to the oil and gas industry; failure to realize the anticipated benefits of acquisitions and dispositions; and the other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

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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