North Sea Energy Inc.
TSX VENTURE : NUK

North Sea Energy Inc.

December 02, 2014 17:05 ET

North Sea Energy Announces Update on Gemini Arbitration

TORONTO, ONTARIO--(Marketwired - Dec. 2, 2014) - North Sea Energy Inc. ("NSE" or the "Company") (TSX VENTURE:NUK) announces that a decision has been rendered by the International Tribunal in the arbitration between Gemini Oil & Gas Fund II, L.P. ("Gemini"), the Company and its subsidiary North Sea Energy (UK) Limited ("NSE UK"). The arbitration proceedings began in November 2011 and focused on the interpretation of the Loan Agreement between Gemini, NSE and NSE UK signed on September 5, 2008 to finance the development of the Jacky Field.

The decision results include an award against NSE and NSE UK in the amount of US$5,820,907 plus simple interest at the rate of LIBOR +3% from September 1, 2014 to the date of payment. The arbitrator ordered that each party bear its own legal costs and that half of the costs of the arbitration be paid by each party.

NSE believes that its obligations under the Loan Agreement terminated at the time of its withdrawal from the Jacky Field as of December 31, 2013. For this reason, the Company is considering an appeal of the arbitrator's decision as it relates to the parent company guarantee of amounts owing to Gemini.

NSE UK does not hold or own any UK North Sea assets at this time. There are no financial guarantees between the three subsidiaries of NSE.

In other news, Premier Oil (UK) Ltd., the operator of the Bagpuss well (Licence P.1943) in which North Sea Energy (UK NO2) Limited holds a 15% working interest, has indicated that they wish to delay the drilling of the well until the first half of 2016.

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

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