North Sea Energy Inc.
TSX VENTURE : NUK

North Sea Energy Inc.

January 17, 2017 11:31 ET

North Sea Energy Announces Update on Bagpuss

TORONTO, ONTARIO--(Marketwired - Jan. 17, 2017) - North Sea Energy Inc. ("NSE" or the "Company") (TSX VENTURE:NUK) through its wholly owned subsidiary North Sea Energy (UK N02) Limited ("NSE2") is pleased to announce the following update regarding the Bagpuss and Blofeld Licence P.1943 ("Bagpuss").

The UK Oil and Gas Association ("the OGA") approves licence renewal for Bagpuss:

The OGA has agreed, in principle, subject to the usual regulatory consents and certain conditions, to the continuation of the Bagpuss licence into the second 4 year term.

Maersk Oil North Sea UK Limited ("Maersk") reassigns interests Bagpuss Licence:

Maersk and the Bagpuss JV listed below have agreed to reassign Maersk's 25% working interest in the Bagpuss on a prorate basis subject to final OGA approval. Upon final approval by the OGA, NSE2's working interest in Bagpuss will increase from 15 % to 20%. The working interests in the Bagpuss JV going forward are expected to be as follows:

Encounter 17.67%
Groliffe 8.83%
NSE2 20.0%
Reach Halibut Limited 53.5%
Total: 100%

About NSE:

The Company, founded in February 2007, is a UK focused oil and gas exploration and appraisal company quoted on the TSX-V. NSE, along with its wholly owned subsidiary, North Sea Energy (UK NO2) Limited, holds two high impact opportunities in the UK North Sea. These opportunities are the Bagpuss and Blofeld prospects located in blocks 13/24c and 13/25 of the UKCS.

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", "forecast", "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.

In particular, there can be no certainty that analysis of the hydrocarbons and reservoir will result in commerciality being established. Factors which may cause commerciality not to be established include risks and uncertainties such as analysis concluding that the hydrocarbons are not of a commercially interesting grade, logistical challenges associated with extracting in the North Sea, oil prices, access to financing (for a full list of risks please refer to our financial statements and management discussion and analysis filed on www.sedar.com).

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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